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JERA Co., Inc. (JERA) has decided to acquire approximately 27% of the outstanding shares of Aboitiz Power Corporation (Aboitiz Power), a major power utility in the Philippines, for approximately 1,580 MUSD (the Transaction) and has executed a share purchase agreement with Aboitiz Equity Ventures Inc. and Aboitiz & Company.
Working in conjunction with Aboitiz Power, JERA hopes to significantly advance the expansion of clean and renewable energy in the country.
Aboitiz Power aims to expand power generation capacity to 9.2 GW and achieve a 50:50 clean energy and thermal capacity mix by 2030 to meet the increasing demand for electricity in the future while promoting renewable energy in the Philippines. At the same time, JERA is working to eliminate CO2 emissions from its domestic and overseas businesses by 2050 under its “JERA Zero CO2 Emissions 2050” objective. By participating in the Aboitiz Power business, JERA will make a positive contribution towards the promotion of clean and renewable energy in the Philippines.
Both JERA and Aboitiz Power are exploring a number of areas of collaboration including the potential joint development of power projects (including LNG-to-Power), collaboration on new generation technologies, and potential participation in aspects of plant O&M. JERA has also signed a memorandum of understanding with Aboitiz Power to collaborate in fuel sourcing and management of the LNG required for potential LNG power plants which can supplement intermittent renewable energy.
In addition, JERA and Aboitiz Power are collaborating on a roadmap to reduced CO2 emissions in the Philippines, and will work together to explore potential opportunities to develop “zero-emission thermal power generation” technologies that JERA is developing in Japan. Such technologies avoid CO2 emissions during power generation by using green fuels such as ammonia and hydrogen.
In cooperation with Aboitiz Power, JERA will contribute to further development in the Philippines by both supporting the stable supply of energy in the country and contributing to an expeditious, cost-competitive roll-out of clean and renewable energy while taking into consideration the unique circumstances of the country,” said Satoshi Onoda, President of JERA.