news/updates
Zamboanga del Norte gov't welcomes Basic's sugar-based ethanol protect
Manila Bulletin
January 22, 2008
Basic Energy's initiative to plant 10,000 hectares of idle lands in Zamboanga del Norte which will be converted into dedicated sugarcane farms for the production of ethanol has been warmly welcomed by the provincial government. The company can even expect to receive business incentives as well as full support, said Zamboanga del Norte Gov. Rolando Yebes.
Basic Energy is building an integrated ethanol plant in the province which will make it the province's largest single investor. It has also begun cultivating tracts of land in three municipalities to supply the necessary feedstock for the plant. When completed in late 2009, the plant is projected to produce daily 200,000 liters of ethanol from sugarcane.
According to Yebes, Basic Energy's initiatives will serve as a catalyst for the province's growth as it will open tremendous opportunities for the development of idle land greatly suited for agriculture. His support of the program downplays recent blanket claims that ethanol production would threaten food security.
Basic Energy president and chief operating officer Oscar L. De Venecia, Jr. added that sugarcane production for ethanol would not adversely affect the food supply in areas where sugar has not traditionally been planted as evidenced by the absence of sugar mills. "By locating our plant in lands that were formerly idle, we are not only stimulating the local economy, we are also ensuring that our feedstock will be constant and that we can produce ethanol at the most efficient price," he said. By choosing to plant its feedstock in the underdeveloped province, Basic would not be subject to fluctuations in supply that could be disrupted by higher prices being offered by sugar mills.
More importantly, the production of biofuels would eventually aid in reducing the country's dependence on imported crude oil and savings in foreign exchange. He added that Basic's business model is self sufficient in generating power since it will be utilizing bagasse from sugarcane residue to fuel their plant's requirements.
De Venecia observed that if properly implemented, the development and production of biofuels such as bioethanol and biodiesel would have valuable positive contributions to the economy.
Yebes relates that the creation of jobs has been a major challenge for Zamboanga del Norte since we lack the presence of big private companies, factories and processing plants that can help us provide for our skilled labor.
Basic Energy has began leasing 10,000 hectares of idle lands in the Municipalities of Gutalac, Labason and Kalawit to plant sugarcane. Its foray in the area coincides with bigger provincial government infrastructure spending on roads in the province which has been adjudged the most peaceful in the Zamboanga Peninsula Region.
Basic Energy Corporation is tapping the local equities market to raise around P2.0 billion in a Follow On Offering being scheduled for mid-March, 2008 and will utilize the new funds to partially finance its first of two integrated bioethanol plants, each capable of producing 41 to 50 million liters of bioethanol per year.
