AC Energy Corp. said Friday it is divesting from three new biomass-fired power plants in Visayas to focus on solar and wind power projects.
ACEN said in a disclosure to the stock exchange Negros Island Biomass Holdings Inc., its joint venture with the Zabaleta Group, signed binding agreements to divest shareholdings in the 20-megawatt San Carlos BioPower, the 25-MW North Negros BioPower and the 25-MW South Negros BioPower.
NIBH will sell its equity stake to its partner, Singapore-based ThomasLloyd CTI Asia Holdings Pte Ltd., which indirectly owns over 90 percent of the biomass-fired power plants, subject to certain conditions precedent. ACEN did not disclose more terms of the sale.
“The divestment of its indirect minority interest allows AC Energy to focus on the expansion of its core solar and wind businesses as it moves towards its goals of reaching 5 gigawatts of renewable capacity by 2025 and becoming the largest listed renewable energy platform in Southeast Asia,” ACEN said.
The Zabaleta group continues to be invested in the solar and wind sectors and operates Bronzeoak Clean Energy in the bioenergy sector.
Bronzeoak Clean Energy provides management services to ThomasLloyd for the three plants and continues as a bioenergy development and management company.
ACEN said the acquisition would allow ThomasLloyd to fully consolidate and further expand the biopower business, moving beyond just the power business and into complementary and ancillary businesses.
ThomasLloyd has full control of the three plants.
ACEN said earlier that the biomass plants were conceptualized to be highly-efficient power plants capable of combusting a range of locally available biomass to generate power by a steam turbine-driven generator utilizing tried and proven technologies while ensuring environmental compliance.
Biomass, including but not limited to, agricultural residue such as sugarcane trash and coconut husks/shells, wood and grasses, will be the main fuel for the plants.
The three power plants have substantially completed construction and are targeting to achieve commercial operations this year.