Greenergy finalizes entry into ethanol

MANILA, Philippines - Listed renewable energy firm Greenergy Holdings Inc. has finalized its entry into the ethanol business.

In a disclosure to the local bourse, Greenergy said it executed a subscription agreement with Isabela Alcogas Corp.

The deal involves “the subscription of the company to P25 million worth of common shares in Alcogas at par value of P1 per share equivalent to 25 million primary common shares,” Greenergy said.

Last year, Greenergy conducted its due diligence for the acquisition of a 50-percent stake in Alcogas, which has an ethanol project in Misamis Occidental.

The firm still has an option to fully own the ethanol firm by investing another P25 million.

Alcogas engages in the manufacturing and trading of goods like ethanol and other biofuels.

Greenergy sourced its funds from the sale of P25 million worth of shares to fund manager Southern Field Ltd. (BVI).

Late in 2010, Greenergy’s board of directors approved management’s plan to negotiate with third parties for possible mergers, acquisitions and the creation of subsidiaries.

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.

Initial investment will cost $200 million for a 49.5-MW wind energy project composed of 33 units of 1.5-MW wind mills.

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