Japan’s JERA to invest $1.58b for 27% stake in Philippines’ Aboitiz Power

Visual from AboitizPower's website.

Japan’s biggest power generator JERA said on Monday it will invest $1.58 billion to take a 27% stake in Aboitiz Power Corp in the Philippines from Aboitiz’s parent company to boost its presence in the country where power demand is growing.

The deal marks the biggest investment by JERA, a joint venture between Tokyo Electric Power Company Holdings Inc and Chubu Electric Power Co Inc, and is also aimed at expanding its renewable power portfolio, it said.

“We want to provide the Philippines’ company with our know-how that we have accumulated over the decades on how to improve the efficiency of operations and maintenance and work together to achieve both growth and decarbonisation,” JERA President Satoshi Onoda told a news conference.

Power demand in the Philippines is expected to grow at an average annual rate of 4.2% through 2030, making the development of electric power infrastructure an urgent priority, he said.

“There is no liquefied natural gas (LNG) power plant in the Philippines yet, but our involvement will enable Aboitiz to develop a world-class LNG power plant with competitive fuel procurement and efficient operation,” he said.

Aboitiz Power, which is controlled by Aboitiz Equity Ventures Inc, aims to double power generation capacity to 9.2 gigawatts(GW) by 2030 from 4.6 GW now by expanding renewable energy and developing gas-fired power plants to meet the increasing demand for electricity, Onoda said.

JERA and Aboitiz will explore collaboration in many areas including operation and maintenance, development of power projects, fuel procurement and use of cleaner fuels such as ammonia and hydrogen.

Aboitiz is eyeing to build an LNG power plant of about 1 GW which will use about 600,000-700,000 tonnes of LNG annually, according to Onoda.

“No concrete plan for an LNG plant has been set yet, but we will study together about the power project and the best way to procure the fuel,” he said.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.