ABOITIZ Power Corp. expects to finalize this month the sale of the 8.8-megawatt (MW) biomass power plant in Lian, Batangas under subsidiary Aseagas Corp., which the listed company wrote off for P3.7 billion early last year.

“May mga plant visits na (There had been plant visits). They received a number of letters of intent,” Emmanuel V. Rubio, AboitizPower chief operating officer, told reporters when asked about the status of the sale.

“I think there’s a deadline. I think late November for people to make offers on those assets,” he added, referring to the advice of an independent entity handling the sale of the plant. “We’re not the one doing the process.”

Asked whether Aseagas has finally attracted interested buyers, he said: “Of course.”

Last year, Mr. Rubio said he was in talks with two interested parties — one local and one foreign. He also said that the foreign entity might partner with a local company. He had expected the transaction to be completed by end-2018.

In December 2017, AboitizPower said the plant had temporarily ceased operations because of the unavailability of organic effluent wastewater from its supplier Absolut Distillers, Inc. for conversion into clean and renewable energy.

In January 2018, the company announced that it would be permanently stopping the operations of the biomass power plant because of the lack of organic materials to produce electricity. It said its top consideration was to balance the interests of stakeholders, including those of Aseagas’ employees.

At that time, the total value affected as a result of the plant’s closure included Aseagas’ invested equity of P3.45 billion and the company’s estimated remaining obligations of around P250 million.

AboitizPower acquired the biomass plant in July 2016, building up its renewable energy footprint, which covers large hydro, run-of-river hydro, geothermal and solar.

The deal was through Aboitiz Renewables, Inc., the listed company’s holding firm that houses its investments in renewable energy. AboitizPower acquired the Aseagas facility from parent firm Aboitiz Equity Ventures, Inc.

The acquisition, which marked AboitizPower’s entry into biomass technology, followed the company’s foray into solar power with the inauguration in April 2016 of San Carlos Sun Power, Inc.’s 59-MWpeak solar power plant in Negros Occidental.

The biomass plant had been expected to start operating and delivering power to the Luzon grid before October 2016. It was supposed to power about 22,000 households while producing 33 tons per day of liquid carbon dioxide for the industrial and beverage industries. — Victor V. Saulon

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