AYALA Corp. is restructuring its energy business by creating two wholly owned platforms to house its investments in renewable energy and thermal energy, the diversified conglomerate told the stock exchange on Friday.

AC Energy Holdings, Inc., its holding firm handling its investments in the sector, will be retained, it added.

“Ayala will retain AC Energy as its umbrella brand for its energy group of companies, which will primarily consist of AC Renewables Inc. and ACE Thermal Inc.,” the listed firm said.

In a statement, AC Energy Chairman Fernando Zobel de Ayala said: “AC Energy has scaled up rapidly over the last five years, and we believe that having these two exciting platforms will enable focused strategies and accelerate our growth.”

In its disclosure, Ayala said the restructuring will be undertaken in three steps, the first of which is the creation of a new holding company, AC Renewables. The group will then transfer its renewable assets to AC Renewables.

It also said an existing thermal holdings company will be renamed ACE Thermal Inc. Its board of directors has approved the restructuring of the Ayalas’ energy business.

John Eric T. Francia, AC Energy president and chief executive officer, said: “We recognize that renewables and conventional power are two distinct businesses that attract different types of investors. This move therefore provides AC Energy a sharper proposition and greater flexibility in the event that we broaden our investor base for our platforms.”

AC Energy targets the development by 2020 of up to 2,000 megawatts (MW) of capacity, of which 1,000 MW is targeted to come from renewable energy. The company had 1,000 MW as of 2016 from a mix of energy resources.

AC Energy has said that of the company’s roughly $1 billion investments in energy, 20% had been placed in Indonesia.

Aside from the 75-MW Sidrap wind farm joint venture project in South Sulawesi, AC Energy also acquired Chevron Corp.’s geothermal operations in Indonesia.

In the Philippines, AC Energy 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.

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 more than doubled the company’s clean energy capacity to at least 264 MW.

In November, AC Energy secured approval from the Philippine Competition Commission for its plan to acquire Negros Island Biomass Holdings, Inc. (Islabio), which has stakes in three biomass projects.

The acquisition, through AC Energy subsidiary Presage Corp., covers Islabio’s outstanding capital stock equivalent to 50,005 common shares. Presage will gain control of Islabio and its operating subsidiaries, thus expanding AC Energy’s renewable energy portfolio to include biomass. — Victor V. Saulon

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