Tiu groups forms P300-M green energy firm

MANILA, Philippines - Renewable energy firm Greenergy Holdings Inc. will allot P300 million for the capitalization of a new green energy firm.

In a disclosure, Greenergy said it secured the Board of Directors’ approval for the listed firm to subscribe up to P300 million in a new green energy firm.

The board also authorized Greenergy to open bank accounts with BDO Unibank, Inc. and Central Equity Rural Bank, Inc.

The company will deposit as much as P300 million in the two banks in preparation for the capitalization of the new firm.

“This is to transfer wind power projects with China to specific subsidiaries,” Greenergy president and chief executive Antonio L. Tiu said in a text message.

Greenergy is in a joint venture with China-based Tianjin Tianbao for the construction of $1.3 billion worth of wind power projects with a total generating capacity of 1,000 megawatts (MW) in the Philippines in the next 10 years.

China Power and Greenergy will create a joint working committee to conduct final due diligence for planned power projects.

Initial investment will cost $200 million for a 49.5-MW wind energy project composed of 33 units of 1.5-MW windmills. Tiu said the funds would be spent in the next six to eight quarters.

Greenergy is also looking at solar power, geothermal energy and hydrolectric power projects here and abroad.

Early this month, the renewable energy firm announced the creation of a new subsidiary to engage in renewable energy.

Greenergy, which already doubled its authorized capital stock to P2 billion, committed to invest 100 million yuan (around P672 million) to finance start-up science and technology firms and make their innovations commercially available.

The company was incorporated as Music Semiconductors Corp. in 1992 to engage in the creation, design, development and manufacture of specialty semiconductor products and to market and sell the same to customers worldwide.