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- $115 million investment: Pertamina NRE’s 20% stake marks its first entry into the Philippine renewable energy market.
- Regional expansion: The partnership enhances CREC’s potential to develop projects in Indonesia and broadens Pertamina’s renewable portfolio.
- Boost to energy goals: The investment supports CREC’s goal of contributing 1GW of green energy capacity annually.
Indonesia’s Pertamina New & Renewable Energy (Pertamina NRE) has taken a significant step into the Philippine renewable energy sector through a strategic partnership with Citicore Renewable Energy Corporation (CREC). Under a share subscription agreement, Pertamina NRE will acquire a 20% stake in CREC, purchasing 2.23 billion shares at ₱3.00 per share for a total of approximately $115 million (PhP6.7 billion).
This marks Pertamina NRE’s first renewable energy investment in the Philippines, which BloombergNEF ranks as the second most attractive emerging market for renewable energy investment.
Oliver Tan, President and CEO of CREC, stated: “The partnership with Pertamina NRE presents limitless opportunities for Indonesia and the Philippines to collaborate on innovative technologies and practices in renewable energy. It gives a wider stage to CREC’s unique end-to-end capabilities by opening doors in Indonesia even as we drive our developments in the Philippines at full speed.”
The agreement also grants Pertamina NRE access to CREC’s expertise in project development and engineering, procurement, and construction (EPC). In return, CREC gains a strategic pathway to expand renewable energy projects in Indonesia and across Southeast Asia.
Related Article: Pertamina Launches Sustainable Finance Framework to Support Energy Transition and Green Projects
The capital infusion from Pertamina NRE will be used to advance CREC’s nationwide green energy initiatives, aligned with its ambitious ‘5GW in 5 years’ roadmap. CREC aims to contribute 1 gigawatt of renewable energy capacity annually.
The collaboration strengthens both nations’ efforts to meet their renewable energy goals amid Southeast Asia’s growing demand for clean energy solutions.
Financial advisory for the transaction was provided by AlphaPrimus, highlighting the importance of strategic partnerships in the region’s clean energy transition.
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