Alsons puts in P1 B in first renewable energy venture

MANILA, Philippines — Alsons Consolidated Resources Inc., the listed holding firm of the Alcantara Group, is investing up to P1 billion in the 15-megawatt (MW) Siguil run-of-river power plant in Maasim, Sarangani, the group’s first renewable energy venture.

With a total cost of P3.7 billion, the project will be undertaken by Siguil Hydro Power Corp. (SHPC), a subsidiary of renewable energy unit Alsons Renewable Energy Corp. (AREC).

The balance will be funded through a project finance loan, which is still being arranged by the group, Alsons executive vice president and chief operating officer Tirso Santillan said in a text message.

“(This is) with banks. Negotiations are ongoing but we have started design and engineering work. Construction to follow,” he said.

Alsons said construction of the Siguil hydro project would begin within the year once it completes all necessary permits and formalities.

The project is expected to begin commercial operations within the first half of 2020, providing power to Saranganl province, General Santos City and key municipalities of South Cotabato.

Meanwhile, an international consortium agreement was signed among Alsons, AREC, SHPC and long-time Japanese partner Toyota Tsusho Corp. to sell to the Japanese government half of the Siguil hydro project’s carbon credits.

This will be done through the Japanese government’s Joint Credit Mechanism (JCM) for the reduction of world-wide carbon emissions.

A JCM project is typically implemented by Japan and a host country through bilateral agreements. Under the mechanism, projects using advanced low-carbon technology are implemented and the resulting greenhouse gas emission reductions may be credited to the project proponents of both participating countries.

Alsons said this would allow the Siguil project to receive additional revenues through the sale of carbon credits.

Alsons is primarily engaged in power generation in Mindanao, operating four power plants namely, the 103-MW Mapalad Power Corp. diesel plant in Iligan City; the 55-MW Southern Philippines Power Corp. facility in Alabel, Sarangani; the 100-MW power plant of the Western Mindanao Power Corp. in Zamboanga City and the first 105-MW of the 210-MW Sarangani Energy Corp. (SEC) coal plant in Maasim, Sarangani.

Earlier this year, it started construction of the second 105-MW section of the SEC plant, which is expected to begin commercial operations in early 2019.

By 2021, Alsons-affiliated power facilities will have around 588 MW of generating capacity.