ALSONS Consolidated Resources Inc. (ACR) is expected to decide before the year ends whether it would accept Toyota Tsusho Corp.’s proposal to invest in some of its hydropower projects.
“In hydro, Toyota has expressed keen interest anywhere from 25 percent to 40 percent of equity of our hydro projects,” Alsons Vice President for Business Development Joseph Nocos said. “While we are doing these on our own now, Toyota is keenly anticipating our invitation.”
Alsons plans to build a 15.1-megawatt (MW) run-of-river hydropower plant at the Siguil River basin in Maasim, Sarangani province, at an estimated cost of P3.7 billion.
The Siguil hydropower plant is expected to begin commercial operations within the first half of 2020, and will provide power to Sarangani province, General Santos City and key municipalities of South Cotabato.
Another hydropower project in the pipeline is in Bago, Negros Occidental, with an installed capacity of 28.8 MW.
Nocos said the company must first conclude negotiation for an engineering, procurement, construction (EPC) contractor before it could proceed to decide if it will partner with Toyota Tsusho once more.
For its Siguil hydro project, Alsons may tap Santa Clara as its EPC contractor.
“It makes sense to expand and enhance Toyota’s relationship with Alsons. However, we need to finalize EPC contract first so we could finally determine the cost and, from there, we will know how much equity Toyota can invest in,” Nocos explained. “Before the end of the year, we may sign an EPC. After which, we can decide on Toyota.”
Toyota Tsusho is Alsons partner in the 210-MW coal-fired power plant with a 25-percent stake. ACR subsidiary Sarangani Energy Corp. began construction of the second 105-MW section of the 210-MW Sarangani Energy baseload coal-fired power plant also in Maasim, Sarangani province.
Construction for Section 2 of Sarangani Energy is currently proceeding ahead of schedule and the plant expected to begin commercial operations in early-2019.
Nocos said Toyota Tsusho is keen in partnering with Alsons on potential investments in the renewable-energy (RE) sector.
“Toyota normally looks at potential investments on a project by project basis. As much as we’d like to expand the partnership, we can’t presume that they will come in every time,” he added. “It is our responsibility to make sure that our projects are investible.”
The total capacity of Alsons’s potential hydropower projects in Mindanao is at 149.3 MW.
“Toyota is aware of all these. So far, its the Siguil and Bago hydro projects that Toyota is actively working on,” Nocos added.
Alsons operates three diesel power facilities: the 103-MW Mapalad Power Corp. diesel plant in Iligan City, the 55-MW Southern Philippines Power Corp. facility in Alabel, Sarangani, and the 100-MW power plant of the Western Mindanao Power Corp. in Zamboanga City.
Aside from the Sarangani Energy power plant, the company is also developing the 105-MW San Ramon Power Inc. (SRPI) baseload coal-fired power plant in Zamboanga City. The SRPI plant, which will provide baseload power to Zamboanga City and other nearby areas, is scheduled to commence commercial operations in 2021.
Before the end of the year, ACR will begin construction of the Siguil hydro project, which marks the company’s entry into the RE sphere.
“We look forward to an exciting year ahead of us as we will have three projects under construction simultaneously by the middle of 2018,” Alsons Executive Vice President Tirso Santillan earlier said.
Santillan added these projects include the Sarangani Energy Section 2, which Alsons expect to begin operating in 2019, Siguil Hydro, which will start operations in 2020, and SRPI, which is targeting to commence operations in 2021.”
These three projects, once finished, will bring ACR’s power-generation portfolio to around 588 MW of generating capacity, which is approximately 25 percent of Mindanao’s projected peak power demand in 2021.
For 2018 Alsons is investing P2.65 billion for SRPI and Siguil projects.