H&WB Asia Pacific Pte. Ltd. Corp. is scouting for lenders to finance its planned $25-million (P12.389 billion) ocean-power project in San Bernardino Strait.
“We intend to fund the project on a 30-percent equity and a 70-percent debt. Right now we are reaching out to financial institutions and in talks on how they could come either on equity or debts. Meantime, they are waiting for us to give them our financial model, which we are working on right now,” said Kit Buenaventura,H&WB general manager for Renewable Energy Projects.
The Department of Energy (DOE) has awarded Ocean Service Contracts to H&WB for three concession areas in San Bernardino Strait between the Bicol Peninsula and Samar Island, for the purpose of exploring and developing the country’s vast ocean-energy resource, deploying Tidal In-Stream Energy Conversion (Tisec) technology.
The concession areas are between Matnog, Sorsogon, and Capul and San Antonio, in Northern Samar.
H&WB is partnering with technology provider Sabella SAS of France for the project.
“The partnership we have is a joint development with Sabella. The San Bernardino Ocean Power Co. is 60 percent owned by H&WB, a Filipino company, then the 40 percent by Sabella. Right now we are thinking about $25 million for the entire project, which includes three turbines, the transmission and the storage systems,” Buenaventura said.
The joint venture is currently in talks with Northern Samar Electric Cooperative Inc. (Nosamelco) for the power project’s output. Clinching a power supply agreement (PSA) with an off-taker is vital in securing a bank loan.
“Yes, they require PSAs so we are now in talks with Nosamelco, the distribution utility of Capul. We are currently in initial talks for a PSA.
We are doing a demand forecast now,” he added.
The power project is in its initial stage of securing the necessary permits. As soon as project financing is secured, construction will take place in less than 18 months.
H&WB wants to deploy tidal power because it is a green, and cost-competitive alternative to fossil energies, and guarantees clean power supply.
“SABELLA and H&WB have recently completed a detailed in situ bathymetry measurement, to move towards a full 3D current numerical model in order to locate the first Demonstration project, which will consist of three to five turbines,” said H&WB.
Both firms earlier signed a memorandum of understanding (MOU) with PNOC-Renewables Corporation.
“PNOC RC’s role is vital, and the MOU with H&WB and SABELLA is a pro-active strategy that can support the project’s success, more so, when PNOC RC decides to invest into the SPC. With PNOC RC, the promise of a new field of ocean energies can be realized in the Philippines,” said H&WB.