Basic Energy [BSC 0.22, up 16.8%]announced that its board authorized the signing of a memorandum of understanding (MOU) with Renova Inc., a Japanese renewable energy company, to set the framework toward signing a definitive Joint Development Shareholders' Agreement for the 50 megawatt (MW) Mabini Wind Energy Project. According to Power Philippines, the Department of Energy granted a service contract for this project to BSC in 2021, and the project is expected to begin full operations by 2027.

MB bottom-line: This isn't the wedding, but it's fair to say that things are getting pretty serious between BSC and Renova. This is more of an agreement to agree. It's important to note that this disclosure was just the BSC board authorizing BSC's President to sign the MOU. As the disclosure points out, 'both sides are preparing and finalizing the signing date of the MOU.' It's hard to judge from the outside how likely it will be for this process to end with an executed Joint Development Shareholders' Agreement. As we've seen from companies like AbaCore [ABA 1.09, up 0.9%], it's possible to sign MOUs in bulk and then just have nothing happen. I don't anticipate that here, but it's worth remembering when talking about MOUs. 50 MW is a serious wind farm.

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