AC Energy acquires remaining 20% of Batangas coal-fired power plant

AC Energy [ACEN 11.28 0.18%] updated the exchange to say that it completed a deal with the Japanese firm, Marubeni Corp., to buy Marubeni’s remaining 20% interest in South Luzon Thermal Energy Corp (SLTEC). The transaction brings ACEN’s stake in SLTEC up to 100%, which gives ACEN full control and makes SLTEC a wholly-owned subsidiary of ACEN. The sale coincides with Marubeni’s 2018 announcement to shift its holdings toward renewable energy sources, and specifically away from coal.

MB BOTTOM-LINE

ACEN used Marubeni’s pivot to consolidate its control of the asset, but considering ACEN’s 80% ownership before this transaction, ACEN won’t receive any new benefits or advantages that it didn’t already enjoy as the dominant shareholder of SLTEC.

Coal-fired power plants are being phased out in the Philippines, but the process will take a couple of generations to work itself through the system. Until then, our growing power grid will still rely heavily on the baseload power provided by these filthy plants. As other sources of power are brought online (including storage, where possible), the importance of these old coal-fired plants will hopefully shrink.

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