JERA to invest in Aboitiz Power, a Major Power Utility in the Philippines, to promote clean and renewable energy in the country

JERA Co., Inchas decided to acquire approximately 27% of the outstanding shares of Aboitiz Power Corporation (“Aboitiz Power”), a major power utility in the Philippines, for approximately 1,580 MUSD (the “Transaction”) and has today executed a share purchase agreement with Aboitiz Equity Ventures Inc. and Aboitiz & Company. Completion of the Transaction, subject to necessary approvals, will further enhance JERA’s presence in the Philippines’ energy sector. Working in conjunction with Aboitiz Power, JERA hopes to significantly advance the expansion of clean and renewable energy in the country.

Aboitiz Equity Ventures Inc. is the public holding company of the Aboitiz Group with major investments in power, banking and financial services, food, infrastructure, and land.

Aboitiz Power, listed on the Philippines Stock Exchange, is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services. The Company is one of the largest power producers in the Philippines with a balanced portfolio of assets located across the country and owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the second and third largest private utilities in the country.

Aboitiz Power aims to expand power generation capacity to 9.2 GW and achieve a 50:50 clean energy and thermal capacity mix by 2030 to meet the increasing demand for electricity in the future while promoting renewable energy in the Philippines. At the same time, JERA is working to eliminate CO₂ emissions from its domestic and overseas businesses by 2050 under its “JERA Zero CO₂Emissions 2050” objective. By participating in the Aboitiz Power business, JERA will make a positive contribution towards the promotion of clean and renewable energy in the Philippines.

JERA and Aboitiz Power are exploring a number of areas of collaboration including the potential joint development of power projects (including LNG-to-Power), collaboration on new generation technologies, and potential participation in aspects of plant O&M. JERA has also signed a memorandum of understanding with Aboitiz Power to collaborate in fuel sourcing and management of the LNG required for potential LNG power plants which can supplement intermittent renewable energy. In addition, JERA and Aboitiz Power are collaborating on a roadmap to reduced CO₂ emissions in the Philippines, and will work together to explore potential opportunities to develop “zero-emission thermal power generation” technologies that JERA is developing in Japan. Such technologies avoid CO₂emissions during power generation by using green fuels such as ammonia and hydrogen.

The Philippines is experiencing rapid economic growth and electricity demand is expected to grow at an annual average rate of 4.2 % until 2030, making the development of electric power infrastructure an urgent priority. The Philippines, like Japan, has limited energy resources and is therefore reliant on imports. “We have had a very good relationship with the Aboitiz family for many years, since Tokyo Electric Power Company joined the power business in the Philippines through TeaM Energy Corporation in 2007. In cooperation with Aboitiz Power, JERA will contribute to further development in the Philippines by both supporting the stable supply of energy in the country and contributing to an expeditious, cost-competitive roll-out of clean and renewable energy while taking into consideration the unique circumstances of the country,” said Satoshi Onoda, President of JERA.