Basic Energy Corp. has secured the Department of Energy’s (DoE) green light to develop a wind farm in Mabini, Batangas.
The listed firm, in a disclosure on Thursday, said the DoE signed the wind energy service contract of its subsidiary Mabini Energy Corp.
The proposed wind project, which has a potential capacity of 50 megawatts, will rise in 4,860 square meters of land in the Mabini Peninsula.
According to Basic Energy, the contract provides for a nonextendible five-year predevelopment stage and a 25-year development stage, counted from contract signing and can be extended for another 25 years, subject to the energy departement’s approval.
The wind facility is projected to commence commercial operations by 2027 or five years from the date of the awarding of the wind energy service contract.
Basic Energy has business interests in various fields of renewable energy and alternative fuels, and oil and gas exploration and development.
Previously, the company signed a memorandum of agreement with MAP 2000 Development Corp. for the acquisition of the former’s issued and outstanding capital stock.
The accord signed last December entails the subscription of 9,827,990,853 primary shares of stock to be issued out of the increase in Basic Energy’s authorized capital stock from P2.5 billion to P5 billion.
This subscription — representing 67 percent of the issued and outstanding capital stock of the listed firm after the increase in capital stock — is subject to the fulfillment of certain conditions, such as the approval of the Securities and Exchange Commission.
Basic Energy had said it is targeting to close M2DC’s P2.8-billion investment in the company within the second quarter of 2021.
Basic Energy shares rose by 18 centavos or 24.66 percent to close at 91 centavos each on Thursday.