Sumitomo, Mitsui, Marubeni joint venture Japanese firms invest in RE project here

Manila Bulletin, 26 March 2009, p B1

Sumitomo, Mitsui, Marubeni joint venture

Japanese firms invest in RE project here

By JAMES A. LOYOLA

March 25, 2009, 7:31pm

Japan’s three giant conglomerates – Sumitomo, Mitsui and Marubeni – are investing in the local renewable energy industry through a joint venture between their leasing firm and a local company.

MG Leasing Corporation (MGL) of Japan and Solutions Using Renewable Energy, Inc. (SURE) formalized their partnership recently by organizing a 60-40 joint venture company, called SURE Eco Energy Philippines, Inc. (SURE Eco).

MGL, a general leasing firm, is 55 percent owned by Sumitomo Mitsui Finance and Leasing Corporation (SMFLC) and 45 percent by Marubeni Corporation. SMFLC counts among its major stockholders Sumitomo Corporation and the Mitsui Group.

SURE, which is considered the most active renewable energy (RE) company in the Philippines, also keeps the widest mix of renewable energy projects among local RE players.

Lawyer Clarence De Guia, SURE corporate secretary and spokesman, explained that, under the signed joint venture agreement, SURE will assign to SURE Eco several identified waste-to-energy projects in SURE’s portfolio.

These include the waste-to-power facility of San Miguel Corporation’s Monterey hog farm in Sumilao, Bukidnon; and similar biomass-fired power plants for Silangan Farms in Lipa City, Batangas; Holiday Hills Stock and Breeding Farm Corporation in San Pedro, Laguna; and Santos Farms in Gen. Natividad, Nueva Ecija.

In turn, MGL has agreed to raise additional capital needed to build and operate the projects that have been assigned to SURE Eco. Infusion from MGL amounts to more than $3 million.

The establishment of SURE Eco gives MGL a presence in the Philippine RE business, which is becoming more popular in the global front because of concerns about dwindling fossil fuel stock and pollution.

MGL’s presence in the Philippine RE business reflects its owners recognition that environmental issues are global in scale and are long-term matters affecting future generations.

MGL official Daisuke Ishihara announced that, with this development, the Japanese leasing company is considering the establishment of a Philippine office. Ishihara played an instrumental role in the development of MGL’s RE portfolio.

SURE was organized by a group of RE and environment experts that include retired officials from the Department of Environment and Natural Resources (DENR). Its clients include companies that handle a large amount of biomass waste, like those from poultry and pig farms.

Taipan to invest over $700 million in hydro power plants

Philippine Star, 23 February 2009

Taipan to invest over $700 million in hydro power plants
By Donnabelle L. Gatdula Updated February 23, 2009 12:00 AM

MANILA, Philippines – One of the country’s taipans is planning to invest over $700 million to put up hydro power facilities in Luzon and Mindanao, well-placed industry sources said.

“A group of investors, including a taipan, is putting up hydro power plants in several locations in Luzon and Mindanao,” the sources said yesterday.

They said the consortium is now in the process of conducting land surveys in preparation for the construction of a 332-megawatt (MW) hydro power facility in Luzon.

This capacity, the sources said, could be expanded up to another 300 MW.

According to sources, the taipan really wants to take an active role in the government’s effort to develop renewable energy (RE) sources.

“Hydro power is clean and renewable,” the sources said, when asked why the taipan chose to build a hydro power facility.

There are over 40 indicative hydro power projects that are listed in the Department of Energy’s Philippine Energy Plan (PEP) which will generate 1,025 MW.

The Metro Luzon Urban Beltway and Mindanao regions host the bulk of the potential projects with a total capacity of 368 MW and 369.8 MW, respectively.

The biggest indicative project based on the PEP is the 360 MW expansion of CBK Power of the Kalayaan Pumped Power Storage in Laguna which is expected to be completed in 2011.

Another huge hydro power project expected to be completed in 2011 is the Salug Daku hydro power plant in Saguiaran, Lanao del Norte.

The PEP indicated that there are already 14 hydro power projects with feasibility studies all over the country. These projects are estimated to provide an additional 255.2 MW to the country’s hydro power capacity.

The projects are being undertaken by various developers. These are: Solutions Using Renewable Energy (SURE); Province of Biliran; PNOC-EDC/Soluziona, Chase Makros Management Inc. (CMMI); Benguet Power Resources Development Corp.’ First Gen Visayas Hydro Power Corp.; and the Sta. Clara Power Corp.

The DOE noted that two of these projects will proceed to the construction phase. These are: Colasi in Mercedez, Camarines Norte; and Sipangpang in Cantilan, Surigao del Sur projects with a potential capacity of 1 MW each. Both projects are expected to be completed this year.