MRC Allied pursuing renewable energy projects

MANILA, Philippines -  MRC Allied Inc. is exploring the possibility of pursuing renewable energy projects with local firm Merge Energy and Environment Corp. (MEEC) in line with plans to diversify into the power sector.

MRC told the local bourse yesterday it executed a memorandum of understanding (MOU) with MEEC, confirming “both parties have an interest in developing renewable energy projects in the properties identified by MEEC as target or locations.”

MEEC is a domestic private corporation engaged in the business of exploration and development of renewable energy resources such as biomass, geothermal, oil and gas.

With the MOU, MRC Allied will conduct due diligence within 60 days from the signing, allowing it to make a decision to pursue a project with MEEC.

“Within the 60-day due diligence period, we will access their data regarding renewable energy projects and we will see if a partnership will be possible so we can proceed with a more definitive agreement,” MRC Allied investor relations officer May Militante said in a text message.

Originally a listed real estate company with a diverse portfolio in property and mining, MRC Allied announced last May it is shifting its focus to pursue investments in the power sector, particularly renewable energy and other clean energy developments under the new leadership of president and CEO Gladys Nalda.

The company has charted a 1,000-megawatt (MW) capacity target by 2022 from clean energy developments, entailing an investment of up to P100 billion.

This year, it will start with the development of an aggregate 160-MW solar capacity in its pipeline — a 100-MW solar farm in Clark Green City estimated to cost P5.5 billion and a 60-MW solar plant in Naga City, Cebu with a projected cost of P3.3 billion, expandable by another 40 MW.

To finance these projects, MRC Allied is looking to raise at least P2 billion from a series of capital raising activities this year.

The company is also exploring new sources of clean energy, building new renewable energy power plants and acquiring shovel-ready renewable energy projects, Nalda said earlier.

For the legacy assets, real estate and mining, the company would hold on to them by putting up special purpose vehicles (SPVs).