ACEN Corp., GenZero and Keppel Ltd. have signed a deed of accession with Mitsubishi Corp. and its subsidiary Diamond Generating Asia Ltd. to leverage a transition credits mechanism for the early retirement and replacement of the 246-megawatt South Luzon Thermal Energy Corp. coal plant with clean energy by 2030.
The potential partnership aims to evaluate the feasibility of leveraging transition credits through a pioneering initiative. This demonstrates how innovative financial mechanisms can accelerate the early retirement of coal-fired power plants in favor of sustainable, clean alternatives.
Mitsubishi’s and Diamond Generating Asia’s participation enhances access to the Japanese market, which plays a significant role in global decarbonization efforts and could support Japan’s emissions trading scheme.
“This partnership represents a milestone in our collective efforts to address the enormous challenges of the energy transition,” said Eric Francia, chief executive of ACEN. “By pioneering the Transition Credits mechanism, we are not only accelerating decarbonization but also demonstrating a viable pathway for coal-dependent economies to transition sustainably.”
