Alternergy and Shell Overseas Investment have progressed their partnership to co-develop an offshore wind farm project of around 1GW in size, in the Philippines’ Calavite Passage in Mindoro.
Under the partnership agreement, 60% equity in the Mindoro offshore wind venture is placed under Alternegy’s charge and the balance with Shell.
The partners will undertake a feasibility study that will eventually merit final investment decision (FID) on the project.
Alternergy said their partnership has obtained a wind energy service contract (WESC) from the Department of Energy to assess the feasibility of an offshore wind project in the Calavite passage near Mindoro.
Alternergy Chairman and former Energy Secretary Vincent Perez said: “Currently we don’t have final investment decision, this is still early stage.
“As development progresses, we can have the commercial decision going forward.”
Perez added that the site of the prospective offshore wind farm project as well as its neighbouring blocks have potential for up to 5GW of capacity.
The project the Alternergy-Shell partnership is developing could be at least 1GW, with the feasibility study completed within five years.
“That particular site in Mindoro has potential of 5GW.
“We need a large project – 1GW potential for that area.
“That’s what we will finalise as we reach final investment decision,” Perez said.
Alternergy and Shell said they were optimistic that the government will “step up collaboration on addressing the critically needed fixes in the OSW development sphere”.
These include establishing port infrastructure facility in Mindoro that will eventually cater to the movement of goods and delivery of equipment when the targeted projects would finally reach commercial development phase.
The partners also noted the government via the DOE would need to address integration of offshore wind capacities into the grid; demarcating exclusion or security zones for the developed facilities; addressing dilemmas on water rights and the concerns of the fisheries sector, project financing, as well as the other environmental and social impacts.
Lorelie Quiambao-Osial, country chair of Shell companies in the Philippines, said: “The Philippines is moving towards a low-carbon future and offshore wind is well-positioned to support this energy transition…we will continue to support the country by providing more and cleaner energy solutions to meet the needs of our customers today and in the decades to come.”