ALSONS Con–solidated Resources, Inc. (ACR), the first independent power producer in Mindanao, will invest up to P1 billion in the 15.1-megawatt (MW) Siguil hydro power project in the province of Sarangani.
ACR informed the Philippine Stock Exchange (PSE) on Friday the investment will be made through its unit Alsons Renewable Energy Corp. (AREC), the direct owner of Siguil Hydro Power Corporation (SHPC).
The project aims to provide power to the province of Saranganl, General Santos City, and key municipalities of South Cotabato.
To be located at the Siguil River basin in the municipality of Maasim, ACR will commence the building of the P3.7-billion run-of-river hydroelectric power project within this year upon the completion of all necessary permits and formalities.
The Siguil hydro power plant is expected to start commercial operations within the first half of 2020.
Alsons also told the PSE it approved a performance undertaking to be issued by its long-time partner Toyota Tsusho Corporation (TTC), Toyota Group’s trading arm, in support of the Japanese government’s plan to sell half of the Siguil hydro project’s carbon credits.
The transaction is under the Joint Crediting Mechanism (JCM) of the Japanese government. JCM is a bilateral agreement between Japan and a host country that seeks to lower carbon emissions across the globe. It involves projects that use advanced low-carbon technology.
Resulting greenhouse gas emissions can be credited to the project proponents of participating countries.
For the hydro project, ACR, AREC, TTC, and SHPC inked an international consortium agreement last Tuesday.
ACR is primarily engaged in power generation, property development, and mining. Incorporated in 1974, it operates four power plants that have combined significantly to helping end the power shortage in the region.
Its subsidiary Sarangani Energy Corporation (SEC) began the construction of the second 105MW section of the 210MW Sarangani Energy baseload coal-fired power facility in Maasim, which is anticipated to start commercial operations in the early part of 2019.
Shares of ACR closed Friday up 0.71 percent at P1.41.