We signed an MOU for future projects in the Philippines

23rd May, 2018

Challenergy signs MOU with PNOC Renewables Corporation and NAREDCO for the conduct of a joint feasibility study for future projects in the Philippines
- Accelerating business with the support of local partners -

Challenergy Inc., Tokyo, Japan (President & CEO: Atsushi Shimizu) signed a Memorandum of Understanding (MOU) with PNOC Renewables Corporation, Manila, Republic of the Philippines (Philippine National Oil Company Renewables Corporation, President & CEO:John J. Arenas) and NAREDCO, Manila, Republic of the Philippines (Natures Renewable Energy Development Corporation, President and CEO:Paul Michael Robles) for the conduct of a joint research and development on the application of Challenergy's wind turbine: "Magnus VAWT" in the Philippines. This is the second time for Challenergy to enter into an MOU with a local company in the country.

Challenergy is developing a first-of-its-kind wind turbine, to realize a safe supply of electricity for a sustainable society for mankind. Since August 2016, the company has been conducting field testing of its technology in Okinawa, and is currently developing its 10 kW prototype, with the aim of starting mass production in 2020. The Philippines is a country with an emerging economy, and power is an essential component to its development. It is composed of more than 7,000 islands, located in a typhoon-prone zone. This country is a promising market for the Magnus VAWT technology which offers a solution to problems of power shortage, especially in times of typhoon and its aftermath.

PNOC-RC is an attached agency of the Department of Energy and a wholly owned subsidiary of the state owned Philippine National Oil Company and is mandated to pursue, develop and implement projects on new, renewable, clean and non-conventional energy sources and systems in the Philippines. To date it has already partnered with nine (9) government institutions in the implementation of solar rooftop projects in the country. It also operates and maintains the 1MW Rizal Hydropower Project and has 10% stake in the Maibarara Geothermal Plant.
With the signing of this MOU, the company aims to develop projects using the Magnus VAWT technology, a first for the company.

NAREDCO is a private company which studies, develops and operates renewable energy projects in the country. They are currently developing utility scale renewable energy power plants in different locations in the country.

Prior to the installation of this cutting edge technology in the Philippines, Challenergy Inc., PNOC-RC and NAREDCO have agreed to conduct a feasibility study of its installation, to survey several isolated islands which (1) have stable wind condition, (2) are frequently visited by typhoons and (3) are powered by small diesel generators.

This MOU also serves to accelerate the business development of Magnus VAWT and to contribute to the efforts of the country to shift to a sustainable society.

" Magnus × Vertical Axis Wind Turbine " Our next generation wind turbine, Magnus VAWT, is a combined application of the "Magnus Effect" and the "Vertical Axis". Utilizing the "Magnus Effect" in lieu of propellers, the Magnus VAWT is able to control its power generation depending on various wind speed conditions and reduce manufacturing costs while enhancing overall durability. In addition to this, the "Vertical Axis" type is omnidirectional, as it can respond accordingly to any wind direction. Moreover, the entire rotation of the Magnus VAWT is much slower than the existing wind turbines, thereby reducing the environmental impacts of noise and bird strikes, normally associated with conventional designs.

【Contact】 Challenergy Inc. (PIC: Shigeto Mizumoto, Chief Strategist)
E-mail: contact@challenergy.com