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Marubeni interested in investing in coco-diesel production in RP
Japan’s Marubeni has expressed interest to study potential investments in biodiesel in the Philippines even as the government is now trying to attract investments in biodiesel which will require a huge P21.7 billion in capital cost over the next years.
Marubeni officials may start a study on biodiesel investments in the country after inquiring on the opportunities here, according to officials of the Philippine Coconut authority (PCA).
“We told them to let us know their decision as soon as possible if their company is willing to participate in any of these investment potentials – rehabilitation (of coconut plantation), new coconut plantation, and biodiesel refinery,” a PCA official said.
Along with Marubeni, Toyo of Japan is expected to complete in September this year a feasibility study (FS) on putting up a biodiesel plant in the country.
“Toyo Corp. is pursuing its interest in biodiesel. Its FS will determine the cost involved in a 600,000-hectare plantation. Their target is to finish the study by September,” according to the PCA Deputy Administrator Carlos Carpio.
PCA estimated that to rehabilitate 770,000 hectares of destroyed coconut plantation, a total of P15 billion would be needed. Government will put in the P10 billion investment while the private sector is eyed to infuse P5 billion. This rehabilitation will generate additional feedstock of 234 million liters of coconut diesel in 2010 which will increase to 462 million liters up to 2012.
PCA has programmed another P6.7 billion investment consisting of P3.6 billion from the private sector and P3.1 billion from the government particularly for establishing entirely new coconut plantation totaling to 200,000 hectares.
New plantation will result in additional biodiesel feedstock of 56 million liters on the fifth year from the year of planting, 84 million liters on the sixth year, 140 million on the seventh, 168 million liters on the eight, 224 million liters on the ninth and 525 million liters on the 10th year.
Marubeni’s plant and Infrastructure Program Department visited PCA to inquire on the country’s National Biofuel Program which aims to make the country not only compliant with the law by supplying its own biodiesel requirement but also to make it a global player in biodiesel production.
Japan alone consumes an estimated 2.5 billion liters of diesel yearly which is several times more than the Philippines’ present coconut diesel production capacity of 270 million liters, PCA officials said.
Toyo has already been inquiring about incentives with the Board of Investments in conjunction with its FS. The Japan Bank for International Cooperation is apparently financing any future interest of Toyo in coconut diesel refinery and plantation in the Philippines particularly in Ilocos Norte or nearby northern Luzon provinces.
By MelodyM. Aguiba
Manila Bulletin
05/01/07
