Pertamina NRE Invests $115M In CREC’s Green Energy

Indonesia's Pertamina New & Renewable Energy, or Pertamina NRE, has made a big foray into the Philippine renewable energy market through a strategic partnership with Citicore Renewable Energy Corporation, or CREC. Through the share subscription agreement, Pertamina NRE buys a 20% stake of CREC at the price of purchasing 2.23 billion shares at the cost of ?3.00 per share with a total investment of $115 million or approximately PhP6.7 billion. Such acquisition serves as a step for the company to step into the country's renewable energy field as it also reflects its continued aim to enlarge its portfolio, with further contributions in support of regional clean energy.

With BloombergNEF ranking it as the second most attractive emerging market for renewable energy investment, the Philippines holds a great prospect for renewable initiatives. In return for this cooperation, CREC can receive not only capital injection of huge amounts but also opportunities to exploit the skills and resources that Pertamina NRE has acquired over time. On the other hand, the investment by Pertamina NRE will complement its regional expansion strategy and cement its position in the Southeast Asian renewable energy market.

Oliver Tan, CREC President and CEO, described the partnership as a transformative one: "The partnership with Pertamina NRE opens up boundless opportunities for Indonesia and the Philippines to work together on new technologies and practices in renewable energy.". It gives a wider stage to CREC's unique end-to-end capabilities by opening doors in Indonesia even as we drive our developments in the Philippines at full speed. Apart from giving Pertamina NRE access to CREC's know-how in the development of a project, including EPC, this agreement opens avenues for CREC to expand its renewable energy footprint in Indonesia and across Southeast Asia.

The capital from Pertamina NRE will act as a stepping stone in increasing CREC's green energy portfolio in line with its ambitious five-year plan to have 5 gigawatts (GW) of renewable energy. It aims to deliver 1 GW of renewable energy every year. Therefore, the partnership with CREC will be a turning point for this project. The collaboration is expected to significantly bolster both nations’ renewable energy targets, addressing the growing demand for clean energy solutions in Southeast Asia.

This also underlines the strategic significance of partnerships for the furthering of the region's clean energy transition. Financial advisory for the deal was offered by AlphaPrimus, which also highlighted how expert guidance contributes to the facilitation of these high-impact investments. The partnership is expected to increase the ability of CREC to further innovative renewable energy projects in the Philippines while allowing Pertamina NRE to expand its renewable portfolio and grow its presence in the region.

This investment is an important milestone for Pertamina NRE as it expands its regional presence in renewable energy. The entry into the Philippine market opens a highly dynamic and rapidly growing Asian renewable energy sector to Pertamina NRE, while supportive regulatory frameworks further strengthen this opportunity. CREC will gain from the financial muscle and the experience of Pertamina NRE in developing large-scale energy projects.

Both companies view this partnership as an opportunity to foster technological and operational synergies, furthering their shared vision of advancing sustainable energy solutions. With Southeast Asia’s energy demand on the rise, collaborations like this are crucial for driving innovation and achieving long-term energy security.

As far as furthering their renewable energy goals, it illustrates the increasing tide of cross-border collaborations in clean energy. Resources, expertise, and market access are combined under this partnership between companies like Pertamina NRE and CREC for better energy satisfaction in the region while also propelling global efforts toward sustainability.

This partnership will serve as a benchmark for other similar partnerships in Southeast Asia and the potential strategic investment to speed up the energy transition. It will be a starting point for Pertamina NRE into the Philippine renewable energy market, while it cements CREC's position in leading the green energy transformation in the Philippines.