Aboitiz Power increases its stake in the STEAG State Power Company

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.

“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.