MANILA, Philippines — Listed Alsons Consolidated Resources Inc. (ACR) of the Alcantara Group is selling more equity to Japan’s Toyota Tsusho Corp., which signified interest to invest in its renewable energy development in Negros.
Toyota Tsusho has expressed interest in renewable projects of the company, particularly in its Negros hydropower project, ACR acting CEO and executive vice president Tirso Santillan said.
“They’ve expressed interest in the Bago project, which is in Negros. They don’t have issues of risk in that project,” he said.
The company official said the Bago hydropower project would consist of four power stations in different sites along the Bago River in Negros Occidental.
“There are four areas that we have identified that can give us 42 megawatts (MW) in total,” Santillan said.
The Bago hydropower project is one of two renewable energy developments that will be pursued by ACR following the Siguil Hydro project in Sarangani province.
“After Siguil, there are two projects that are waiting to be implemented, which are Bago and Sindangan,” Santillan said. “We’re moving toward implementing (Bago).”
As soon as the company finalizes and starts the Bago project, Toyota Tsusho is expected to invest up to 25 percent in the project.
“I think, as soon as we’re ready to go, they will invest. It’s a long process not just for Toyota, but for all Japanese companies,” Santillan said.
While the Japanese company expressed interest in ACR’s renewable energy projects, Toyota Tsusho is wary of the peace and order situation in the other hydropower projects located in Mindanao.
“There is a probability that they will not invest in Siguil, and it’s for security reasons. It’s in the red area for them,” Santillan said.
He said the project is located in the mountains, unlike in Sarangani Energy Corp. (SEC) where Toyota has a 25 percent stake in the project company.
The Siguil project is ACR’s first renewable venture. Full-blast construction is targeted to start later this year, while commercial operations are eyed in 2022.