AC Energy Corp. said Friday it signed an agreement with CleanTech Global Renewables Inc. to own a 55-percent interest in the project company that will build the 200-megawatt Lal-lo solar power project in Lal-lo, Cagayan.
ACEN said in a disclosure to the stock exchange that along with wholly-owned subsidiary ACE Endevor Inc., it signed an agreement with CleanTech Renewable Energy 4 Corp., a wholly-owned subsidiary of CleanTech Global Renewables, over the ownership and management of Natures Renewable Energy Devt. Corp.
“The company and Cleantech, through its subsidiary CREC4, intend to co-own NAREDCO, the project company for the proposed Lal-lo solar power project,” ACEN said.
“The joint venture will potentially add more than 100 MW of renewable energy to the company’s power generation portfolio,” it said.
The agreement involves the development and operation of the Lal-lo solar power project that will be developed in two phases. Phase 1 involves 133.46-MW capacity with estimated notice to proceed by the second quarter of 2022, while phase 2 involves 60.54-MW capacity with targeted NTP by first quarter 2023.
Full commercial operations of the project are expected to commence by 2024.
The transaction will enable the ACEN to co-own the proposed 200-MW Lal-lo solar power project in line with its target to achieve 5,000 MW of attributable renewables capacity by 2025.
After subscription by ACEN and Endevor to an aggregate of 82,500 common shares in NAREDCO on Dec. 17 last year, the ownership structure will give ACEN with 55 percent, Endevor with 5 percent and CREC4 with 40 percent of the common shares.
ACEN said that as long it holds 55-percent interest, it will be entitled to nominate three directors in the five-man NAREDCO board. CREC4 will be entitled to two board seats.
ACEN said the transaction is subject to approval of the Securities and Exchange Commission of NAREDCO’s application for increase of authorized capital stock and creation of redeemable preferred shares.
“ACEN may provide NAREDCO short-term financing to allow early NTP. ACEN will be repaid from the proceeds of the third-party project finance or NAREDCO’s issuance of additional RPS in favor of ACEN,” the company said.