corporate

AboitizPower geothermal unit earns ISO certification for Asset Management

June 13, 2019

AboitizPower subsidiary AP Renewables, Inc. (APRI) earned its Asset Management System certification with zero non-conformance, covering the widely recognized and adopted ISO 55001:2014 standard. The certification audit, which was recently conducted by DQS Certification Philippines Inc., covered both APRI’s Tiwi and MakBan geothermal power plants in Albay and on the border of Laguna and Batangas provinces, respectively. APRI President and Chief Operating Officer Alexander B. Coo said that the certification is a reflection of the company’s continuous efforts to optimize the life cycle of its electricity generating assets. “The Asset Management System ensures that we are able to balance costs, opportunities, and risks related to our assets to achieve our organizational objectives,” Coo added. During the awarding of the certificates last June 10, DQS Philippines Managing Director Romeo Zamora revealed a secret behind APRI's success and gave kudos to APRI employees for this feat. He said, “If not for the teamwork and support of all the employees of APRI, the certification could have not materialized.” APRI is also certified for the Integrated Management System that includes the 2015 version of ISO 9001 (Quality) and ISO 14001 (Environment), and the 2007 version of OSHAS 18001 (Health and Safety). The company is one of the leading producers of clean and renewable energy in the Philippines, generating baseload power from its geothermal facilities.  

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Solar Philippines – expanding its reach nationwide

June 12, 2019

SOLAR Philippines, the leader and expert in solar in the country, has cemented its reach in Mindanao by recently entering into a Power Purchase Agreement (PPA) with St. Jude Chicken Slaughterhouse and St. Jude Chicken Dressing Plant for a 1.570MWp solar project in its vicinity in Tagoloan, Misamis Oriental - aiming primarily to generate millions of savings annually. This project is expected to decrease the carbon emission footprint of their operation by 1,400 MT per annum. Solar Philippines is a 100 percent Filipino-owned company founded by visionary entrepreneur Leandro Leviste, integrating development, manufacturing, design, procurement, construction and operations and maintenance with its own strategically located plan. Here, it produces world class solar photovoltaic systems and serve clean energy at the lowest cost to its customers all over the country. Leviste’s goal is to eradicate poverty by making the Philippines a first world country through the aid of solar energy. Solar Philippines believes that solar and battery storage will supply the majority of the world’s energy over the coming decades – ending poverty, alleviating climate change and enabling emerging economies to leapfrog decades of development. Their mission is to accelerate this global transition towards a solar powered future, to provide energy at the lowest cost and to make the Philippines a leader not only among the economies of Southeast Asia but the world at large. The story of Solar Philippines began in March 2016 when it completed its Calatagan solar farm, the largest in Luzon. By February, Solar Philippines rolled out its first homegrown solar panels from its factory in Sto. Tomas, Batangas. In August of the same year, it already got its ISO 9001 certificate and a month after, it was awarded as Power Company of the Year by the Asian Power Awards. Solar Philippines produces the highest standard of module manufacturing for in-house demand and OEM partners and is capable of producing the highest quality modules with different sizes (60c/72c) and technologies (mono/multi/PERC/bifacial etc.). That’s because Solar Philippines deploys the latest technologies in solar energy generation from a 1KW residential system to tens of megawatts of farm system. It has an annual capacity of 800MW and ships high quality and fully certified PV modules to domestic and international customers. The factory also provides OEM services to Tier 1 PV module manufacturers in the world aside from producing PV modules for Solar Philippines’ solar projects. To date, the total generating capacity of the solar systems installed by Solar Philippines is at 84.5MW, the biggest of which is the 63.3MW Calatagan solar farm, a joint venture with Korean Electric Corporation. It has likewise partnered with Meralco for its Concepcion solar farm which spans over 150 hectares and can produce up to 150MWp solar power production. Using over 199,000 panels, it is expected to generate clean renewable power for the next 30 years. These systems already saved 7.5 million trees and avoided 181,225 tons of CO2 emission per year. Its Philippine-based operations guarantee availability of critical parts to meet its customers’ increasing solar-powered needs now and in the future. With a team of 200 highly skilled in-house engineers, Solar Philippines provides high quality and lowest cost solar installations, utilizing world class design tools and lean concept sin supply chain and construction methods. The first to deploy the largest operating solar-battery minigrid project in Southeast Asia and hundreds more in the pipeline locally and globally, Solar Philippines serves electricity directly to paying households and businesses in far-flung underserved areas. Solar Philippines’ portfolio of quality projects include those atop SM, Robinsons, CityMall and Toyota, among others. Solar Philippines has also been exploring the international market especially in the Asian and African regions. Entities in Singapore, Indonesia and Myanmar have already been incorporated to cater the company’s ongoing foreign transactions. Pilot projects are currently being developed in Vietnam, Nigeria, Kenya and India – each targeting different market segments.

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Holcim: Co-processing with PEF saved 60,000 MT of wastes from going to landfills

May 25, 2019

Imported PEF from Oz conform with DENR AO on Alternative Fuels & Raw Mats for Cement Kilns Co-processing of plastic and other industrial and agricultural wastes actually helps ease the pressure on the environment, instead of further aggravating it. This is the gist of the statement posted on its website dated 23 May 2019 by cement manufacturer Holcim Philippines which said the recent importation of nine container vans of what it termed as “processed engineered fuels (PEF) comply with DENR Administrative Order  2010-06 ( Guidelines on the Use of Alternative Fuels and Raw Materials in Cement Kilns.) Holcim also said the Central Office of the Environment Management Bureau (EMB) had already sent an official letter to Bureau of Customs Port Collector John Simon dated May 21, 2019 informing Simon EMB has no objections to the importation and use of PEF as alternative fuels in cement kilns since it is declared as a product that underwent processing prior to shipment to the Philippines.  Simon earlier asked Region 10 EMB Director Reynaldo Digamo if the importation of processed engineered fuels (PEF) requires an Importation Clearance from the EMB Central office. “We are hoping that this clarifies the confusion regarding this matter. Our company maintains that the materials are PEF and these were accurately and truthfully declared as such. Acutely aware of the public outcry against the export of wastes to the Philippines and irresponsible and damaging waste disposal practices, Holcim Philippines’ importation and use of PEF as alternative fuel for its cement kilns is pursuant to its objective of contributing to the ongoing efforts to address the global waste problem.” Holcim Philippines further declared in its statement that it has been a partner in the drive to address the waste management problem in the country. “The company uses co-processing technology, wherein qualified materials such as non-recyclable plastics, rubber, textiles, cardboard and wood are used as an alternative to coal in making cement through waste management unit Geocycle.” The cement maker further declared that Geocycle has actually saved 25,000 metric tons of non-recyclable plastic wastes from various industrial partners and local governments from ending up in landfills by using these as an alternative fuel to coal in its kilns. Together with agricultural and industrial wastes, Geocycle has co-processed 600,000 tons of alternative fuel since 2015. “Aside from providing a safe and environment-friendly waste management solution, co-processing is also an important part of Holcim Philippines’ efforts to reduce carbon emissions and consumption of non-renewable resources such as coal.” Holcim explained how through co-processing, alternative fuels made from plastic, rubber, cardboard and wood are fed into the high-temperature, long residence time kilns along with coal and other raw materials of cement. “This process completely transforms alternative fuel to energy for cement production. The technology is approved by the Philippine authorities and is widely used all over the world for waste management due to its proven advantages in environmental and safety performance.” Holcim Philippines President and CEO John Stull said, “Geocycle is stepping up engagement with the private sector and studying possible collaboration with a number of local governments on providing its co-processing services.” “Holcim Philippines is a committed partner in the country’s development and we are contributing more beyond building materials. Our Geocycle business is a clear example as it helps alleviate the country’s waste management challenges, which is expected to grow along with the economy,” he added. Geocycle is looking to have pilot projects with a number of local governments in 2019 to demonstrate the advantages of its waste management service over current alternatives such as land filling.  Sustainability In a related post on its website, Holcim Philippines stressed Sustainability as among their core values. “We believe it is a key driver of our business success and we strive to practice this every day in our operations. With this, we look to make a lasting positive impact and contribute more than building materials to the development of our country. This can be seen in our efforts to be respectful of the environment, ensure the health and safety of our people and partners and help uplift the communities that host us.” “To be a better partner for progress, our company has set ambitious improvement targets within our operations and beyond our fences covering four focus areas: climate, circular economy, water and nature, and people and communities. These follow the LafargeHolcim Group’s 2030 Plan, which provides a long term road map to contribute to addressing key global challenges identified by the United Nations. Not so fast However, LGU officials from Misamis Oriental are not buying Holcim’s explanation. In a report published in another daily newspaper (not Mindanao Daily) recently elected provincial board member Gerardo Sabal III said he would ask the Sangguniang Panlalawigan to probe the shipment of nine container vans consigned to Holcim Philippines containing the controversial PEF which were unloaded at the Mindanao Container Terminal (MCT) in Tagoloan, Misamis Orientalon May 3.  Despite the letter from EMB Central Office clearing the shipment, Bureau of Customs MCT Collector John Simon reportedly said the broker who facilitated the importation of the nine vans from Australia would also be held accountable due to some “committed infractions.” A related report from another local daily said a joint inspection team from the Misamis Oriental and the BOC reportedly found “municipal wastes,” consisting of shredded garbage made from plastic, wood, and glass which would require an import permit prior to its importation. The bureau also recommended that the shipment be issued a warrant of seizure and detention order, citing possible violations of Republic Act 9003 (Ecological Solid Waste Management Act of 2000); RA 6969 (“Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990);” RA 8749 (“Philippine Clean Air Act of 1999); and RA 10863 (Customs Modernization and Tariff Act).

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Economic expansion drives utility’s growth

May 19, 2019

The AboitizPower-led Davao Light and Power Co. (Davao Light) sees bright prospects in its franchise area in the next three to five years as robust economic growth continues to spread across the country. Davao Light forecasts to grow its peak demand from 421 MW in 2018 to 546 MW by 2023, which the distribution utility attributes to the growth in real estate businesses, sprouting huge universities, commercial complexes, and business process outsourcing offices. Apart from this, Davao posted an impressive double-digit economic growth of 10.9 percent in 2017, the highest in the region’s history, which can be attributed to the positive performance of the service and industry sectors. “We expect to serve more customers from these industries this year, especially in light of the government’s Build, Build, Build program. The construction boom in the city is a win-win for all sectors,” said Davao Light Director, President, and Chief Operating Officer Rodger S. Velasco. Among the utility’s big customers coming in between 2019 and 2021 are several residential buildings, a hotel, a business park, a multipurpose indoor arena, a factory, and schools. For this year alone, Davao Light’s franchise area will welcome two manufacturers, a mall, a food complex, a business park, and real estate development. The utility also sees an increase in annual MWh sales from 2,468,191 MWh in 2018 to 3,137,336 MWh in five years. By 2023, Davao Light also estimates to grow its customer base to 504,911 customers from 404,574 last year. To keep up with the development within the respective franchise areas of its utilities, AboitizPower has set aside P3.1 billion in 2019 to modernize its existing distribution assets across the country in the next few years. “We want to take advantage of the robust economic growth in our franchise areas by making sure power is delivered to our customers reliably, sustainably, and at the most cost-effective way. The initiatives we have mapped out for this year and beyond are part of our effort to become world-class and the best at what we do,” said Jaime Jose Y. Aboitiz, EVP and COO of the AboitizPower Distribution Group. Part of this modernization program is the construction of facilities in Davao Light’s franchise area that will add 424 MVA in transformation capacity, further improving network efficiency and reliability. The Davao-based utility is also set to string a total of 228 circuit kilometers of combined sub-transmission and backbone distribution lines to reinforce the existing system. To help improve its efficiency, Davao Light will also implement distribution automation and its advanced distribution management system. In terms of reliability, Davao Light reduced the average duration of power interruptions a customer experiences in a year from 315 minutes in 2017 to 301 minutes in 2018, which can be attributed to faster response time on the utility’s end. However, the average number of interruptions a customer experiences increased from 4.4 in 2017 to 5.2 in 2018, mainly due to ongoing construction works in the city, which affect the utility’s distribution lines. Davao Light is the third largest privately owned electric utility in the country. It holds the franchise for distributing electric power to Davao City as well as Panabo City and the municipalities of Carmen, Dujali, and Sto. Tomas in Davao del Norte. AboitizPower is currently one of the largest electricity distributors in the Philippines with ownership interests in seven distribution utilities including the second and third largest in the country. The distribution subsidiaries of AboitizPower include Visayan Electric Company in Cebu and Cotabato Light and Power Co. in Cotabato, among others. Through the Aboitiz Group, AboitizPower has more than 80 years of experience in the Philippine power distribution sector and has been known for innovation and efficient operations.

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AboitizPower Q1 net income dips by 9% to P3.6 billion

May 16, 2019

AboitizPower recorded a consolidated net income of P3.6 billion for the first quarter of 2019, 9% lower than the P4 billion recorded for the same period last year.      Non-recurring losses amounting to P440 million were recognized during the period, compared to the P1.2 billion in non-recurring losses recorded during the same period last year. Without these one-off losses, core net income for the first quarter of 2019 was P4.1 billion, 21% lower year-on-year (YoY), which was largely due to the higher volume and cost of purchased power.      Spot market prices were exceptionally high during the first three months of 2019, and the company purchased replacement power due to outages and over-contracting in preparation for Therma Visayas, Inc. (TVI) coming online. The company recorded consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) of P10.4 billion for the period, 13% lower than the P11.9 billion for the first quarter of 2018.      “It has been a challenging first quarter for the industry and AboitizPower. The planned maintenance shutdown of power plants in preparation for the upcoming elections, coupled with forced outages, resulted in the grid's thinning reserves. Despite this, our customers remain our top priority and we ensured delivery of replacement power from the spot market,” said Emmanuel V. Rubio, AboitizPower Executive Vice President and Chief Operating Officer. Generation and Retail Electricity Supply      AboitizPower’s generation and retail supply business recorded a consolidated EBITDA of P8.6 billion in the first quarter of 2019, 15% lower than the P10.1 billion recorded during the same period last year. This was primarily due to higher volume and cost of purchased power. As previously mentioned, spot market prices were high during the first quarter of 2018, and the company purchased replacement power caused by outages and over-contracting in preparation for TVI’s incoming capacity addition.      Capacity sold for the first quarter decreased by 7% YoY, from 3,174 megawatts (MW) in 2018 to 2,947 MW in 2019.      “We are excited with new supply contracts and new power plants that have started to deliver power to the grid, which should contribute to our bottom line starting this year,” Rubio said.      “We will continue to pursue our renewable energy projects as we look forward to the implementation of the Green Energy Option Program and Renewable Portfolio Standards. We are committed to continue providing the country with adequate power supply that is affordable and sustainable,” Rubio added. Distribution      AboitizPower’s distribution business, meanwhile, recorded consolidated EBITDA of P1.9 billion, 3% higher than the P1.8 billion recorded last year.  The company saw energy sales increase to 1,343 gigawatt-hours (GWh), which was 3% higher than the 1,298 GWh recorded in the first quarter of 2018.  This was driven by the increase in new customers across all segments.  About AboitizPower      AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services. It advances business and communities by providing reliable and ample power supply at a reasonable and competitive price, and with the least adverse effects on the environment and host communities.      The company is one of the largest power producers in the Philippines with a balanced portfolio of assets located across the country. It is a major producer of Cleanergy, its brand for clean and renewable energy with several hydroelectric, geothermal and solar power generation facilities. It also has thermal power plants in its generation portfolio to support the baseload and peak energy demands of the country.      The company also 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.

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Harley-Davidson opens Davao dealership

May 16, 2019

DAVAO City — More Harley-Davidson motorcycles could soon be hitting Mindanao’s roads with the recent opening of a dealership here, which also offers after-sales service and original merchandise for the American motorcycle brand. The 500-square meter shop along J.P. Laurel Avenue is controlled by Rdak Global Motors Inc., the Harley-Davidson dealer in Cebu.      “We hope to satiate the craving of the Davao and Mindanao market (for the brand),” said Therese Carmita A. Maligon, marketing manager of the Cebu and Davao dealership in a news conference.      Rdak Global Motors owner Regan Rex T. King said the group decided to expand to Davao to address demand customers and tap “the growing markets in Mindanao.”      Mr. King did not disclose the number of Harley-Davidson owners in the southern islands, but said the market consists mainly of motorcycle enthusiasts who can afford a ride of at least P1.1 million.      This market, he added, always “look for a Harley-Davidson” even if they own other brands.      Mr. King said with the new Davao shop, Rdak Global hopes to ensure that customers “will get the premium experience that (Harley-Davidson) owners so deserve.”      “We want to give a premium customer experience for our customers in this part of the country, especially in having their bikes serviced,” he said.      He added that the company is selling not just high-end motorcycles, but a “total culture and lifestyle.”      “Our customers love to hang out,” he said, which is why it was important to set up more than just a display store.

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