MANILA, Philippines — A unit of listed Nickel Asia Corp. (NAC) has tied up with Netherlands-based Shell Overseas Investments BV to pursue renewable energy projects in the Philippines.
The listed company said in a disclosure to the Philippine Stock Exchange (PSE) that its subsidiary Emerging Power Inc. (EPI) has inked an agreement with Shell Overseas Investments to jointly develop, own, operate, and maintain onshore renewable energy projects in the country.
Under the agreement, EPI would have a controlling 60 percent stake in the joint venture and Shell would own the other 40 percent.
“The joint venture has the full support of EPI’s parent company, NAC. This partnership would allow both companies to boost the supply of renewable energy in the Philippines and is in line with NAC’s vision to become the premier ESG investment in the country,” NAC president and CEO Martin Antonio Zamora said.
The investment company is targeting one gigawatt (GW) by 2028, and possibly to contribute up to three GW of renewable energy capacity by rolling out a series of projects in Luzon and Visayas.
The joint venture is setting sights on utility scale solar photovoltaic (PV) and is evaluating opportunities in onshore wind and energy storage systems.
Industry data showed that a gigawatt of solar PV can supply the annual daytime consumption of over 1.2 million homes in the country.
A Filipino household typically consumes 200 kilowatt-hours a month.
This joint venture is an opportunity to provide integrated value to customers through exploring synergies with retail electricity supplier Shell Energy Philippines Inc.
“Working with partners and developing new collaborations is key to accelerate the energy transition. This Shell-EPI partnership will leverage on Shell’s technical expertise and integrated solutions as a global energy company and EPI’s strong presence in the Philippines. Together, we can power progress for the Philippines through sustainable energy for industries and homes,” Shell country chair Lorelie Osial said.
EPI has been growing its investments across various forms of cleaner energy including solar, wind, and geothermal.
It sees bullish prospects for renewable energy development as governments all over the world are turning to renewable forms of energy in response to the global energy challenges.
Currently, it operates a 100-megawatt (MW) solar farm in Mt. Sta. Rita in the Subic Bay Freeport Zone in Zambales with a 230-kilovolt (kV) transmission line under subsidiary Jobin SQM Inc.
It also recently secured a second 100-MW solar service contract with the Department of Energy (DOE) for the Mt. Sta. Rita site, the development of which is slated to begin this year.
EPI is also developing pilot geothermal projects in Mindoro and Biliran. Once completed, the pilot operations may be expanded to realize potentially 20 MW in Mindoro and 50 MW in Biliran.