Basic Energy Corp. signed a memorandum of understanding (MOU) with Japan’s Renova Inc. for the joint development of the 50-megawatt Mabini wind project in Mabini, Batangas.
Renova, a publicly-listed company incorporated on May 30, 2000, is known as one of the leading players in the growing renewable energy market in Japan.
Basic said in a disclosure to the Philippine Stock Exchange the signing of the MOU is the initial and definitive step towards the joint development and shareholders agreement (JDSHA) with Renova.
The JDSHA will cement Renova’s and Basic’s partnership, through its wholly owned subsidiary Mabini Energy Corp. as the special purpose vehicle of the Mabini wind project.
This followed the Basic board’s approval for management to sign the MOU on Jan. 29, 2024.
“The MOU signing comes after Renova saw the potential viability of the project based on its initial and on-going due diligence review of the data gathered from the met mast installed in the project area as well as those gathered from the LIDAR system procured MEC back in 2023,” Basic said.
The Mabini wind project is covered by Wind Energy Service Contract No. 2021-01-142 issued by the Department of Energy.
The service contract has a land coverage area of 4,860 hectares in the Mabini Peninsula with a potential capacity of 50 MW. The project is expected to operate and deliver power to the grid by 2027.
MEC continues to conduct its wind resource assessment for the project by collecting the data from LIDAR equipment readings and the meteorological mast installed in the project area.
Basic said the scheduled signing of the subsequent definitive agreements like the JDSHA would be finalized by the end of the first quarter.
“With the signing of the MOU, the parties declare their joint commitment to the development of the onshore wind power project pursuant to the JDSHA, symbolizing a significant stride in sustainable energy initiatives being promoted by the country,” Basic said.