BSC went up by as much as 5.08% after the company informed the exchange that it has commissioned the meteorological mast facility at the site of its proposed 50-MW wind energy project in Mabini, Batangas. The mast will undergo a one-week functional test to ensure that it will perform according to its design intent, after which the one-year wind resource assessment period will start. <\/p>\n\n\n\n
The facility will verify the commercial viability of the area for wind power production, and if the assessment is favorable, the company will conduct micro site tests to determine the best wind turbine locations, as well as the design that will result in optimum production.<\/p>\n\n\n\n
Hopefully, this project won\u2019t turn out to be nothing but hot air. In 2021, BSC asked the Department of Energy to convert its geothermal energy contract in Mabini, Batangas into a wind energy contract after years of drilling found no viable geothermal sources in the area. <\/p>\n\n\n\n
Earlier this year, the Board of BSC approved an initial budget of P31-million for the project, which will cover 4,860 hectares and is slated for commercial operations by 2027. According to Global Wind Atlas, the area receives wind speed of up to 35.1 km\/h and an average of 10.2 km\/h throughout the year. This should be able to generate an average of 957 W\/sqm, which could be considered commercially viable but markedly less than the 1,913 W\/sqm estimate for the operational Puerto Galera Wind Project just across the Verde Island Passage.<\/p>\n\n\n\n
We are cautiously optimistic on BSC, as its cash flows have turned positive since acquiring majority control of oil retailer Filoil Energy late last year. The company still has a retained deficit, but we expect this to turn positive within the year if Filoil can sustain its profits. With consistent performance, BSC will eventually have enough financial muscle to take on projects like this, adding new revenue streams. <\/p>\n\n\n\n
However, wind energy is more expensive and has a longer timeline than solar energy. There can be a lot of uncertainty involved when one has to wait five years for a project to be operational, and this has to be considered if one decides to buy into the story of BSC.<\/p>\n\n\n\n