MANILA, NNA - Major Japanese trading house Marubeni Corp. has dropped its bid to take part in the Saint Raphael coal-fired power project in the Philippines with Semirara Mining and Power Corp. (SMPC) of the Consunji group, the Manila Bulletin reports, citing Consunji’s top executive.
The move is in line with Marubeni’s announcement last year that it was shifting to renewable energy sources to help reduce greenhouse gas emissions.
The Japanese firm had originally planned to take a 20 percent stake in the $1.4 billion project, according to the report.
It quoted SMPC Chairman and Chief Executive Officer Isidro A. Consunji as saying that Marubeni had decided against joining the project, adding that the decision is in line with its new investment strategy.
A Marubeni spokesperson declined to comment on the report.
Divestment in fossil-fuel projects is gaining momentum as institutional investors demand a more stringent code of conduct in financing such projects as coal-fired power generation that could accelerate global warming.
Mitsubishi UFJ Financial Group is considering halting extension of new loans to coal-fired power projects, recent press reports said.