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Aker Horizons — M&A Activity 2022
Oct 12, 2022
3530_rns_2022-10-12_9db3fbfc-5712-4ef9-8591-122525c0eadb.html
M&A Activity
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Mainstream Renewable Power and AboitizPower Enter Joint Venture Agreement for Initial 90 MW Wind Project in the Philippines
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,
Christian Yggeseth, Investor Relations, Tel: +47 915 10 000,
Emmet Curley, Head of Communications & Positioning, Tel: +353 86 2411
690, [email protected]
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.
www.akerhorizons.com
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.
www.mainstreamrp.com
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.
www.aboitizpower.com