ACEX firms up investment in Batangas power plant

MANILA, Philippines — ACE Enexor Inc. (ACEX), the listed oil and gas exploration and production unit of the Ayala Group, has firmed up its investment in a 1,100-megawatt (MW) combined cycle power plant in Batangas, which will be co-developed with a unit of global alternative asset manager Blackstone Inc.

In a disclosure to the Philippine Stock Exchange, ACEX signed a shareholders’ agreement and subscription agreements with Batangas Clean Energy Inc. (BCE) and Gen X Energy L.P., a portfolio company of Blackstone Inc., the world’s largest alternative asset manager.

With the signing of the agreements, ACEX will subscribe to a total of 150,002 shares in BCE for a total subscription price of P150.22 million.

ACEX previously entered into an investment agreement with Buendia Christiana Holdings Corp. (BCHC), Red Holdings B.V., BCE and Gen X Energy L.P. for the development of the 1,100-MW combined cycle power plant.

The project will be able to use natural gas and/or green hydrogen as its fuel to provide firm power to the grid to meet the country’s growing energy demand.

Green hydrogen is a zero-carbon gas produce through a chemical process that extracts hydrogen from water using electricity from renewable sources, which can be a replacement for fossil fuels.

The joint venture will be through BCE, which will be 50 percent owned by ACEX and Gen X Energy each, subject to satisfaction of agreed conditions precedent and execution of further definitive documents

On its website, Gen X Energy said it successfully developed, financed, constructed and operated energy and related infrastructure projects in 21 countries, representing over 27,500-MW globally, including over 8,500 MW in Vietnam, Philippines, Taiwan, India, China, Bangladesh and Sri Lanka.

ACEX will be Ayala group’s platform for its non-renewable energy power projects in line with the Ayala group’s goal to achieve net zero greenhouse gas emissions by 2050.

ACEN Corp. is spinning off its thermal assets this year via a property-for-share swap with ACEX to allow it to become a 100 percent renewables company by 2025.

It will also work on separating ACEX to become an independent entity.