MANILA, Philippines — Soon-to-be listed renewable energy firm Alternergy Holdings Corp. has bagged three additional offshore wind service contracts from the Department of Energy (DOE), bolstering the company’s expansion pipeline.
Alternergy said its wind arm Pililla AVPC Corp. (PACO) has been granted exclusive rights to explore, develop, and utilize wind resource in the wind-swept Tablas Strait separating Oriental Mindoro and Antique.
The three wind energy service contracts awarded by the DOE for the Tablas Strait offshore wind power project covers about 120,000 hectares. Knud Hedeager, PACO chief executive officer and Alternergy director, said the Tablas Strait offshore wind power projects awarded to the company this month were subjected to rigid technical, legal, and financial review by the DOE since July 2022.
He said the projects are located in one of the zones identified by a World Bank study that is most suited to offshore wind development. “We look forward to proceeding with the pre-development activities, particularly technical studies and resource assessment,” Hedeager said.
The Tablas Strait wind energy service contracts bring to four the number of offshore wind contracts awarded to PACO by the DOE.
Last year, PACO was awarded a wind energy service contract over the Calavite Passage. The Calavite Passage offshore wind project covers about 78,000 hectares between northwest Mindoro and Lubang Island.
Alternergy is co-developing the offshore wind power projects with Shell Overseas Investment B.V. as its strategic partner.
Alternergy said Shell would bring in its global track record, supply chain access, and technical expertise in developing large-scale bottom-fixed and floating offshore wind projects.
The company, for its part, will provide its extensive experience in project management, policy and regulatory permitting, and financing renewable energy projects in the Philippines.
Alternergy said its offshore wind power projects are part of the company’s robust expansion plans in the next five years, in which it aims to develop up to 1,370 megawatts (MW) of additional wind, offshore wind, solar and run of river hydro projects.
The DOE has awarded 55 offshore wind service contracts with an aggregate capacity of 40.68 gigawatts (GW), or almost twice the dependable generation capacity in the country. The agency said the current rule of thumb for offshore wind project investment was about $5 million per MW, but this is expected to go down in the coming years with more deployment.
Average time span for an offshore wind project to develop and see its first wind turbine erected, meanwhile, could take anywhere from six to nine years.
Alternergy said part of the proceeds from its upcoming initial public offering (IPO) would be used to fund the pre-development activities of its pipeline of projects, including the offshore wind power projects.
Alternergy will offer of up to 1.150 billion in primary shares, representing 30.11 percent of the company’s economic ownership, at an offer price of up to P1.48 per share.
The company will also issue an over-allotment option of up to 115 million shares for a stabilization fund to be managed by BDO Capital, the joint issue manager and joint lead underwriter.
Alternergy’s offer period will run from March 13 and end on March 17, with the listing date eyed on March 24.