MANILA, Phils.—AboitizPower (PSE ticker symbol: AP) signed an agreement with Marubeni Corp. (TSE Code: 80020) last September 27, 2011 in Tokyo, Japan to formalize their intention to jointly develop, build and operate a 400-MW coal-fired plant. The proposed plant is to be located within the premises of the existing 700-MW Pagbilao power plant in Quezon, Philippines. Estimated cost of the power plant is US$600-700 million.
Marubeni is part owner of TeaM Energy, which in turn owns and operates the Pagbilao plant under a build and operate contract with the National Power Corp.
Therma Luzon, Inc. (TLI), a wholly owned subsidiary of AboitizPower, is the Independent Power Producer Administrator (IPPA) of the existing Pagbilao power plant. As its IPPA, TLI handles the procurement of its fuel requirement and sale of the energy generated by the plant.
Like the Pagbilao facilities, the new power plant will also run on clean coal generation technology using the Circulating Fluidized Bed system to produce power with considerably less adverse effects to the environment.
Signatories of the MOU were AboitizPower President and CEO Erramon Aboitiz, and Marubeni Executive Managing Director and Board Member Shigeru Yamazoe.
"We are very pleased to work with Marubeni at optimizing the capacity of the Pagbilao power station. This is part of our over all goal of providing power solutions that are competitively priced," Aboitiz said.
"We expect to complete the power plant within 2015," he added.
AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services. It is a major producer of Cleanergy, its brand for clean and renewable energy in the Philippines with several hydroelectric and geothermal assets in its generation portfolio and also has non-renewable power plants located across the country. The company owns distribution utilities that operate in high-growth areas in Luzon, Visayas and Mindanao. (For more details, please visit: www.abotizpower.com
Marubeni Corp. is involved in the handling of products and provision of services in a broad range of sectors. These areas encompass importing and exporting, as well as transactions in the Japanese market, related to food materials, food products, textiles, materials, pulp and paper, chemicals, energy, metals and mineral resources, transportation machinery, and includes offshore trading.
The Company's activities also extend to power projects and infrastructure, plants and industrial machinery, finance, logistics and information industry, and real estate development and construction. Additionally, Marubeni conducts business investment, development and management on a global level. (For more details, please visit: www.marubeni.com
Marubeni Executive Managing Director and Board Member Shigeru Yamazoe, and AboitizPower President and CEO Erramon Aboitiz link hands for a new 400-MW clean coal power plant project.