Taisei Corporation, a Leading Japanese Contractor, Invests in PetroGreen Unit

One of the largest general contractors in Japan, Taisei Corporation (Taisei), and Yuchengco-led PetroGreen Energy Corporation (PGEC) inked investment framework and shareholder agreements on April 23, 2024, with the goal of Taisei acquiring a 25% equity stake in PGEC's subsidiary, Rizal Green Energy Corporation (RGEC). Taisei, one of Japan's top 5 general contractors, was established in 1873 and has since built ports, harbors, industrial complexes, power plants, bridges, and tunnels, as well as commercial structures across more than 65 nations. The Taisei Group reported total net sales of US$12.3 billion for the fiscal year 2022.

The initial portfolio of four solar power facilities—the 41 MWdc Limbauan project in Isabela, the 25 MWdc Bugallon project in Pangasinan, the 19.6 MWdc San Jose project in Nueva Ecija, and the 27 MWdc Dagohoy solar project in Bohol—will be funded, built, and operated by the investment. The partnership deal with the Yuchengco-led company represents Taisei's first equity investment in renewable energy (RE) outside of Japan, despite the fact that it has been operating as a general contractor in the Philippines since 1982, primarily on infrastructure projects sponsored by official development assistance (ODA).

Taisei Executive Vice President Jiro Taniyama declared, “We are very pleased to be able to contribute to renewable energy in the Philippines, which is experiencing remarkable development, and more importantly, to participate in this project as a business partner with PGEC. We are looking forward to the synergies that this project will generate in the business of TAISEI and PGEC led by the Yuchengco Group.”

PGEC Chair Milagros V Reyes remarked, “We are honored that Taisei has chosen the Philippines to make its first overseas equity investment in RE. Following on the 2022 partnership we forged with Kyuden International Corporation (KIC), Taisei’s entry not only validates PGEC’s performance and integrity as an RE developer and partner but also testifies to the vastly improved energy investment climate in the country under the present administration.”

PGEC Board Director and KIC Asia Division Managing Director Keichi Niinuma added, “Kyuden and Taisei have worked well together in Japan and we are delighted that we are extending this collaboration as equity partners in the Philippines with YGC. Combining Taisei’s engineering and construction expertise with Kyuden’s and PGEC’s experience in the Philippine energy market and regulatory environment, we hope to explore other RE opportunities such as hydropower, floating solar, energy storage and efficiency and others to boost the Philippines’ transition to a net-zero future.”