Corporate News

By Victor V. Saulon, Sub-Editor

Ayala completes deal for Chevron’s geothermal assets in Indonesia

Posted on April 04, 2017

AC ENERGY Holdings, Inc. and its joint venture partners have completed the acquisition of Chevron Corp.’s geothermal assets and operations in Indonesia, its parent firm Ayala Corp. told the stock exchange on Monday

“The Indonesia assets and operations include the Darajat and Salak geothermal fields in West Java, Indonesia, with a combined capacity of 637 MW [megawatts] of steam and power,” it said.

The consortium Star Energy Geothermal (Salak-Darajat) B.V., in which AC Energy has a 19.8% economic stake, won the bid for the assets in December last year in an auction that was also participated in by the energy units of the Lopez and Aboitiz families.

AC Energy’s partners in the consortium are Star Energy Group Holdings Pte. Ltd., Star Energy Geothermal Pte. Ltd. and Electricity Generating Public Co. Ltd.

“The company is committed to build a portfolio of power generation assets using renewable and conventional technologies,” Ayala Corp. said.

The purchase of Chevron’s Indonesian assets boosts AC Energy’s renewable energy portfolio, which has recently been expanded by an investment in a wind farm in Indonesia.

AC Energy President John Eric T. Francia earlier told reporters that the company’s proposed acquisition of Chevron’s geothermal assets in the Philippines would take time.

“We don’t know yet. There is ongoing discussions with the current partner of Chevron. It’s really a matter between Chevron and SM because they are still the partners on record,” he said, referring to the Sy group.

Chevron has a 40% interest in Philippine Geothermal Production Co., Inc., which develops and produces steam energy for the third-party-owned and -operated Tiwi and Mak-Ban geothermal power plants in southern Luzon. The plants have a combined generating capacity of 692 MW.

“We made an offer... We just have to wait whether the sale will push through or not depending on number one, the current discussions between the two partners, and number two, if there is a green light for us to get in then we still need PCC [Philippine Competition Commission] approval,” he said.

Based on latest statistics supplied by AC Energy, its 19.8% stake in the 637-MW geothermal steam and power capacity in Darajat and Salak geothermal fields, along with its 75% stake in the 75 MW wind farm project in Sidrap, South Sulawesi, more than doubled the company’s clean energy capacity to at least 264 MW.

In the Philippines, the company has a 36% economic stake in the 81-MW North Luzon Renewable Energy Corp., 68% in the 52-MW NorthWind Power Development Corp. and 100% in the 18-MW Monte Solar Energy, Inc.

By 2020, AC Energy aims to reach 2,000 MW of attributable capacity -- or the equivalent in megawatts of its economic stake in various projects -- of which 1,000 MW is targeted to be renewables. It reached 1,000 MW in 2016, with renewable energy accounting for less than 10%.

In traditional energy, the company has a 20% stake in the 632-MW GNPower Mariveles Coal Plant Ltd. Co.; 50% in the 668-MW GNPower Dinginin Ltd. Co.; 35% in the 244-MW South Luzon Thermal Energy Corp.; and 85% in the 552-MW GNPower Kauswagan Ltd. Co.

Last month, AC Energy announced the acquisition of 100% ownership of Bronzeoak Clean Energy and San Carlos Clean Energy, which it described as entities with renewable energy development, management and operations platform.

That platform supports San Carlos Solar Energy, Inc., Negros Island Solar Energy, Inc., Monte Solar Energy, Inc., San Carlos BioPower, Inc., South Negros BioPower, Inc. and North Negros BioPower, Inc.

Mr. Francia said the company’s stake in the solar projects, which has a gross capacity of 143 MW, is a “small minority.”

“It’s a complex structure,” he said. “It’s hard to put a number that’s why we just say it [attributable capacity] is just minimal.”