Economy 2 MIN READ

Shell, Philippine partner to build 1 GW renewable energy capacity

July 1, 2022By Reuters

Shell Overseas Investments B.V., a unit of Shell plc RDSa.L has signed an agreement with the Philippines’ Emerging Power Inc for an initial 1 gigawatt renewable energy project tapping solar, the companies said on Friday.

Shell and Emerging Power, the energy unit of top Philippine nickel ore miner Nickel Asia Corp. (NIKL), said their venture is targeting 2028 completion and is scalable up to 3 GW.

The focus is on solar but they said opportunities in onshore wind and energy storage systems were also being evaluated. A 1 GW capacity can supply the annual daytime consumption of more than 1.2 million Philippine homes, they said in a statement.

London-based Shell, which aims to become a net zero greenhouse gas emissions company by 2050, currently has 4.7 GW of renewable energy generation capacity globally in operation, under construction or committed to sale.

Shell, which has agreed to sell its 45% stake in the Philippines’ Malampaya natural gas project, has a further pipeline of 38 GW in future renewable energy ventures.

The venture adds to a growing list of renewable power projects in the Southeast Asian country, which is seeking to reduce its fossil fuels dependence.

Last month, unlisted Prime Infrastructure Holdings Inc of tycoon Enrique Razon disclosed plans to construct a solar power facility with 2.5 GW to 3 GW capacity, which would be the world’s biggest of its kind.

The Philippines aims to increase renewables in its power mix to 35% by 2030, from 21% in 2020, and to 50% by 2040. Coal accounted for nearly 60% of the 2020 mix.

New President Ferdinand Marcos has said he would support the push for renewable energy.

(Reporting by Enrico Dela Cruz; Editing by Martin Petty)

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