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Press Release

JERA to Invest in Aboitiz Power, a Major Power Utility in the Philippines, to Promote Clean and Renewable Energy in the Country

2021/09/27

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 today executed a share purchase agreement with Aboitiz Equity Ventures Inc. and Aboitiz & Company. Completion of the Transaction, subject to necessary approvals, will further enhance JERA's presence in the Philippines’ energy sector. Working in conjunction with Aboitiz Power, JERA hopes to significantly advance the expansion of clean and renewable energy in the country.

 

Aboitiz Equity Ventures Inc. is the public holding company of the Aboitiz Group with major investments in power, banking and financial services, food, infrastructure, and land.

 

Aboitiz Power, listed on the Philippines Stock Exchange, is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services. The Company is one of the largest power producers in the Philippines with a balanced portfolio of assets located across the country and owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the second and third largest private utilities 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.

 

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.

 

The Philippines is experiencing rapid economic growth and electricity demand is expected to grow at an annual average rate of 4.2 % until 2030, making the development of electric power infrastructure an urgent priority. The Philippines, like Japan, has limited energy resources and is therefore reliant on imports. “We have had a very good relationship with the Aboitiz family for many years, since Tokyo Electric Power Company joined the power business in the Philippines through TeaM Energy Corporation in 2007. 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.

 

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About JERA

 

Established in 2015 as an equal joint venture between two major Japanese electric companies (TEPCO Fuel & Power Incorporated and Chubu Electric Power Company), JERA is an energy company with global reach and strengths across the entire energy supply chain from participation in fuel upstream projects and procurement through fuel transportation and power generation.

 

JERA’s mission is to provide cutting-edge solutions to the world's energy issues by offering to other countries energy supply models established in Japan through JERA’s global operations. Looking toward 2025, JERA focuses primarily on energy solutions in two areas: large-scale renewable energy centered on offshore wind power generation and LNG value chains. To further drive existing initiatives and clarify its long-term vision, JERA established its "JERA Zero CO2 Emissions 2050" objective in October 2020 based on the development of renewable energy and zero-emission thermal power generation using ammonia and hydrogen.

For further details: https://www.jera.co.jp/english/

 

 

About Aboitiz Equity Ventures Inc.

 

Aboitiz Equity Ventures Inc. is the public holding company of the Aboitiz Group with major investments in power, banking and financial services, food, infrastructure, and land. Today, Aboitiz is recognized as one of the best-managed companies in the Philippines and in the region, consistently cited for its commitment to good corporate governance and corporate social responsibility. With five generations of Aboitiz Group business success behind it, Aboitiz continues to drive change for a better world by advancing business and communities.

 

 

About Aboitiz Power Corporation

 

Aboitiz Power Corporation is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services. It advances business and communities by providing reliable and ample power supply at a reasonable and competitive price, and with the least adverse effects on the environment and host communities.

 

The company is one of the largest power producers in the Philippines with a balanced portfolio of assets located across the country. It is a major producer of Cleanergy, its brand for clean and renewable energy with several hydroelectric, geothermal, and solar power generation facilities. It also has thermal power plants in its generation portfolio to support the baseload and peak energy demands of the country.

 

The company also owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the second and third largest private utilities in the country.

 

Currently, Aboitiz Power Corporation, together with its partners, is the Philippines’ largest owner and operator of renewable energy based on installed capacity. In the next 10 years, the company will significantly expand its Cleanergy portfolio, in support of the government's efforts to promote renewable energy in the country and as the company's contribution to the global renewable energy targets. Aboitiz Power Corporation is aiming for a 50:50 Cleanergy and thermal capacity mix by 2030.