MRC Allied to focus on sand export business and solar energy projects
As published on BusinessWorld.
PUBLICLY listed MRC Allied, Inc. said on Monday that it plans to explore more opportunities in the sand export business while staying on the lookout for solar energy rooftop projects.
“MRC Allied is set to continue expanding its energy portfolio this year, keeping up the momentum set over the last three years,” the company said in a statement.
“For its energy portfolio, the company wants to maintain its focus on solar rooftop projects, an increasingly growing industry as many businesses now realize the benefits of solar energy and utilizing rooftops for such solar panels,” it added.
At the same time, the company said it “plans to tap opportunities” in utility-scale energy projects to build on its previous installation.
The company has 60-megawatt (MW) solar project in Naga City, Cebu. It is also a partner of SunRay Power, Inc. (SPI), which has a solar service contract from the Energy department to develop a 100-MW solar farm in Capas and Bamban in Tarlac province.
SPI had said its Clark solar project is being developed in partnership with state agency Bases Conversion and Development Authority (BCDA), the developer of the New Clark City. The solar farm is to be built within a 256-hectare property leased from BCDA by SPI.
In 2017, MRC Allied acquired a 15% stake in a solar farm in Leyte. The move marked its shift to the energy business by acquiring a stake in one of the entities that own Sulu Electric Power and Light (Phils.), Inc. (Sepalco).
Sepalco owns a 50-MW solar project in Brgy. Castilla in Palo, Leyte province. It started operating in March 2016.
In December 2019, MRC Allied signed a sale and purchase agreement with Shining Star Ningbo Import & Export Co. Ltd. for the delivery of sand.
Under the agreement, MRC will be delivering Shining Star a natural river sand in bulk from a potential seller. The contract will be effective for five years. The company expects a gross revenue of $760,000 per shipment.
MRC Allied is led by Augusto M. Cosio, Jr., who is implementing the company’s vision and road map consistent with its focus to become a “major” renewable energy participant.
The company quoted Mr. Cosio as saying that the projects in the pipeline would transform MRC Allied into “a bigger, bolder and future-ready company with investments in renewable energy.”
MRC Allied started as a company engaged in the processing and export of natural rubber, before its shift to real estate. It has since changed its primary purpose to renewable energy development.
On Monday, shares in the company closed higher by P0.001 or 0.5% at P0.20 each.