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Home > Synthesis

Copenhagen Energy-PetroGreen Energy, Philippines 2GW Offshore Wind Project Progresses: Environmental Approval Secured

Desk / Updated : 2025-06-03 20:27:06
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MANILA, Philippines – Buhawind Energy Northern Luzon Corporation (BENLC), a joint venture between Denmark's Copenhagen Energy (CE) and the Philippines' PetroGreen Energy Corporation (PGEC), has obtained a preliminary Environmental Compliance Certificate (ECC) for its 2GW floating offshore wind project set to be built in Northern Luzon, Philippines, accelerating the project's advancement.

 
Pioneering Offshore Wind Development in the Philippines

Issued on May 29, 2025, by the Philippine Department of Environment and Natural Resources (DENR), this ECC marks a significant milestone, authorizing BENLC to conduct essential geophysical, geotechnical, oceanographic, environmental, and social surveys needed to characterize the physical and socio-economic baseline conditions of the project area. PGEC emphasized that this data is crucial for both the development design of the offshore wind project and for assessing its potential environmental impacts on the site.

Yrel V. Ventura, PGEC’s Vice President for Environment and Community, stated, “With the approval of the preliminary development ECC, we will now embark on systematic, comprehensive, and scientific studies of the physical and social environment of the site. This will not only meet international industry standards but also provide a factual basis for evaluating development concerns.”

 
Strategic Investment Project Recognized as Nationally Significant

Prior to this environmental approval, the Northern Luzon offshore wind power plant was certified as an "Energy Project of National Significance" by the Philippine Department of Energy (DOE) in April 2025. Furthermore, in the same year, the Philippine Board of Investments recognized this project as a strategic investment aligned with the national development agenda, issuing a "Green Lane Certificate" for the offshore wind power plant. This clearly demonstrates the Philippine government's recognition of this project as a key undertaking essential for national economic development. The "Green Lane" system was introduced by the Philippine government to streamline and expedite permitting processes for important infrastructure projects, reflecting the Philippines' commitment to stimulating foreign investment and promoting national economic growth.

 
Long-Standing Partnership Between Copenhagen Energy and PetroGreen Energy

PGEC and CE began jointly developing offshore wind projects off the Philippine coast in 2020, and in 2022, they formalized their partnership by establishing a joint venture company called BuhaWind Energy Philippines. This partnership stems from both companies' shared vision to accelerate the sustainable energy transition by harnessing the Philippines' abundant offshore wind resources.

In late 2024, BuhaWind Energy Philippines successfully secured grid connection for the 2GW floating offshore wind farm in Northern Luzon. This signifies that the infrastructure for stable transmission of electricity generated from large-scale offshore wind power has been secured, marking a crucial step that significantly enhances the project's feasibility.

In addition to the Northern Luzon project, the joint venture is developing two other projects, each with a 1GW capacity, in Northern Mindoro and Eastern Panay, respectively. If all these projects are successfully developed, the Philippines will acquire a total of 4GW of large-scale offshore wind power capacity, which would be a significant stepping stone towards becoming a major offshore wind power nation in the Southeast Asian region.

 
The Philippines' Energy Transition and the Future of Offshore Wind

As a developing country with rapidly increasing electricity demand, the Philippines is committed to reducing its reliance on fossil fuels and increasing its share of renewable energy. In particular, the Philippines is considered to have very high offshore wind potential, with the Asian Development Bank (ADB) estimating the Philippines' offshore wind potential to be around 21GW. This is an enormous capacity, more than enough to meet the Philippines' entire electricity demand.

Offshore wind offers advantages such as stable and large-scale power supply, better wind conditions compared to onshore wind, and the ability to establish large-scale wind farms. The Philippines, with its many deep-water areas, is showing particularly active interest in the development of floating offshore wind technology. Floating offshore wind involves installing turbines on floating structures that are not fixed to the seabed, making installation possible in deep waters, which is a technology well-suited to the Philippines' geographical characteristics.

The Philippine government is providing various policy supports to achieve its renewable energy goals. It has implemented the Renewable Portfolio Standards (RPS) and offers tax incentives and other incentives for renewable energy projects. Furthermore, it is working to establish a clear regulatory framework for offshore wind development and to streamline permitting procedures.

The collaboration between Copenhagen Energy and PetroGreen Energy is expected to make a significant contribution to these energy transition efforts in the Philippines. Denmark is a global leader in offshore wind, possessing extensive experience and technological expertise, while PGEC has a deep understanding of and network within the local Philippine market. The synergy between the two companies is anticipated to accelerate the growth of the Philippine offshore wind industry and play a key role in building a sustainable energy future.

This ECC acquisition signals the Northern Luzon 2GW offshore wind project's entry into the full development phase. Following subsequent survey and environmental impact assessment processes, once final construction permits are obtained, the Philippines is expected to further solidify its position as an offshore wind powerhouse in the Asia-Pacific region. This project is anticipated to greatly contribute not only to strengthening the Philippines' energy security but also to job creation and local economic revitalization.

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