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.