Mainstream Renewable Power and AboitizPower Enter Joint Venture Agreement for Initial 90 MW Wind Project in the Philippines
Mainstream Renewable Power (“Mainstream” or “the Company”), the global renewable energy company majority-owned by Aker Horizons, today announces the signing of a joint venture agreement with Aboitiz Power Corporation (“AboitizPower”), via its subsidiary Aboitiz Renewables, Inc. (“ARI”), one of the Philippines’ leading providers of renewable energy, to initially deliver the 90 MW Libmanan onshore wind project located in the Camarines Sur Province.
The joint venture, which harnesses the combination of Mainstream’s global renewables development expertise and track record and AboitizPower’s extensive local expertise and business network, will play a leading role in the Philippine Government’s drive to increase renewable generation in the country via the rapid expansion of its portfolio of wind and solar assets. AboitizPower has a stated goal to grow its renewables portfolio to 4,600 MW by the end of the decade and Mainstream is contributing to this via the Libmanan onshore wind project as well as a future development pipeline.
The 90 MW Libmanan onshore wind project is expected to reach financial close in 2023 and achieve commercial operations in 2025.
“We are delighted to be entering this joint venture with AboitizPower to deliver our first wind farm in the Philippines," said Mary Quaney, Chief Executive Officer of Mainstream Renewable Power. "This is one of Mainstream’s priority markets in the region and we are committed to working in partnership with AboitizPower to support the Philippines’ ambitious target to cut its greenhouse gas emissions by 75 percent by 2030.”
The joint venture, which is subject to regulatory approvals, is being delivered through an investment agreement for ARI’s proposed acquisition of a 60 percent stake in the Libmanan onshore wind project, which Mainstream has been developing since 2017 with its local partner.
Early this month, in a bid to draw more investors and end-users in renewable energy, the Department of Energy approved an increase in the yearly renewable portfolio standards from 1 percent to 2.5 percent. The Philippine Government’s ambition is to generate 35 percent of all its electricity from renewables by 2030, and 50 percent by 2040. The country has multiple strategies to achieve its targets including the Green Energy Option Program (GEOP), Renewable Portfolio Standard (RPS), and the recently launched Green Energy Auction Program (GEAP). Renewable energy expansion is expected to play an important role in meeting the Philippines’ growing economy and electricity demand.
ENDS
For further information, please contact:
Ivar Simensen, Communications, Tel: +47 46 40 23 17, ivar.simensen@akerhorizons.com
Christian Yggeseth, Investor Relations, Tel: +47 915 10 000, christian.yggeseth@akerhorizons.com
Emmet Curley, Head of Communications & Positioning, Tel: +353 86 2411 690, emmet.curley@mainstreamrp.com
About Aker Horizons
Aker Horizons develops green industrial projects and technologies that accelerate the net zero transition. The company holds assets across renewable energy and carbon capture, and develops green industrial hubs that combine low-cost renewable energy with hydrogen production and downstream applications. As part of the Aker group and its 180-year industrial heritage, Aker Horizons applies industrial, technological and capital markets expertise to solve fundamental challenges to sustainable existence. Aker Horizons is listed on the Oslo Stock Exchange and headquartered in Fornebu, Norway. Through its portfolio companies, Aker Horizons employs over 1,200 people across 18 countries and five continents.
About Mainstream Renewable Power
Mainstream Renewable Power is a leading pure-play renewable energy company, with wind and solar assets across global markets, including in Latin America, Africa, and Asia-Pacific. Mainstream is one of the most successful developers of gigawatt-scale renewables platforms, across onshore wind, offshore wind, and solar power generation. It has successfully delivered 6.5 GW of wind and solar generation assets to financial close-ready and has a global project portfolio of over 27 GW.
In May 2021, Aker Horizons acquired a majority stake in Mainstream, and in April 2022, Mitsui & Co., Ltd. joined Aker Horizons as a long-term strategic investor. In August 2022, a transaction to integrate Aker Offshore Wind into the Mainstream Group was completed.
Mainstream has raised more than EUR 3.0 billion in project finance to date. Since January 2021, Mainstream has grown its team from 335 to over 700 today across five continents.
About AboitizPower
AboitizPower 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, the company’s 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 country’s baseload and peak energy demands.
The company also owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the country’s second and third largest private utilities.
AboitizPower, 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. AboitizPower will build an additional 3,700 MW of renewable energy, growing its existing Cleanergy capacity threefold by 2030.