Aboitiz Power increases stake in STEAG State Power

STEAG State Power runs a 210-megawatt coal-fired power plant.

Aboitiz Power entered a share purchase agreement with STEAG GmbH to buy its remaining share of 15.6% in STEAG State Power, with a total purchase price of $11m.

In a disclosure, AboitizPower said the transaction brings its total equity interest in STEAG State Power to 85%.

The company said the move is a good opportunity to help in managing a generation facility connected to the Mindanao grid.

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“Since this is an existing generation facility, there are no emissions added to the total GHG emissions of the Philippines,” the company said.

“With the energization of the Mindanao-Visayas Interconnection, this plant will be able to export much-needed capacity to the national grid, which has experienced tightness of supply reserves in recent years,” it added.

STEAG is developing and maintaining a 210-megawatt coal-fired power plant at the PHIVIDEC Industrial Estate in Misamis Oriental in Southern Philippines.