AC Energy exits from biomass

MANILA, Philippines — AC Energy Corp. (ACEN) has divested from biomass power companies in Negros to focus on expanding its solar and wind portfolio.

In a disclosure to the Philippine Stock Exchange, ACEN said its joint venture with the Zabaleta group, Negros Island Biomass Holdings Inc. (NIBH), signed binding agreements to divest its shareholdings in three biomass-fired power plants in Visayas.

Under the deal, NIBH will sell its equity stake to its partner, Singapore-based ThomasLloyd CTI Asia Holdings Pte Ltd., subject to certain conditions.

ACEN said the terms of the sale were not disclosed.

The divestment of its indirect minority interest allows ACEN to focus on the expansion of its core solar and wind businesses as it moves toward its goal of reaching five gigawatts (GW) of renewable capacity by 2025 and becoming the largest listed renewable energy platform in Southeast Asia.

ACEN president and CEO Eric Francia said the company is prepared to invest heavily in renewables led by solar and wind, complemented with battery storage.

In 2017, then AC Energy Holdings Inc. took over Bronzeoak Philippines Inc., which owns Bronzeoak Clean Energy (BCE) and San Carlos Clean Energy (SCCE) to ramp up its renewable energy portfolio.

SCCE owns the solar projects San Carlos Solar Energy Inc., Negros Island Solar Energy Inc. and Monte Solar Energy, which have a combined capacity of 142 megawatts (MW).

On the other hand, the biomass plant developments – the 20-MW San Carlos BioPower Inc., the 25-MW North Negros BioPower Inc. and the 25-MW South Negros BioPower Inc. – are under BCE.

Bronzeoak and NIBH were then incorporated into Ayala Corp. under AC Energy.

With the acquisition, ThomasLloyd now has full control of the three biomass plants.

The transaction also allows ThomasLloyd to fully consolidate and further expand the biopower business, moving beyond just the power business and into complementary and ancillary businesses.

Meanwhile, the Zabaleta group continues to invest in the solar and wind sectors.  It operates Bronzeoak Clean Energy in the bioenergy sector.

Bronzeoak Clean Energy also continues to provide management services to ThomasLloyd for the three plants, and continues as a bioenergy development and management company.