news/updates
RP inks $55-M biofuels deals
By Marichu A. Villanueva
Philippine Star
March 6, 2008
WASHINGTON, DC – The Philippine government signed here Tuesday $55 million worth of business deals with American corporate giants in the development of renewable energy sources to help develop the emerging bioethanol and coco-diesel industries in the country.
The Department of Agriculture (DA) headed by Secretary Arthur Yap along with Philippine Ambassador to the United States Willy C.Gaa witnessed the signing of both contracts between FE Clean Energy and Global Renewable Energy Network (GREEN) Inc.
The formal signing of the two business agreements was held a day after Yap arrived here along with Energy Secretary Angelo Reyes to attend the Washington Washington International Renewable Energy Conference (WIREC).
In his remarks after the signing ceremonies, Yap said the agreements present the Philippines with “valuable opportunities to generate international interest in the country's bio-fuels feedstock development program” and “provide promising potentials for our farmers apart from favorably contributing to energy production and environment preservation.”
During the contract signing, Marriz Agbon, president of the Philippine Agricultural Development and Commercial Corp. (PADCC), Francisco Hoyos, vice chairman of FE Clean Energy of Darien, Connecticut, and Jose Maria Zabaleta Jr., chairman of Bronzeoak Clean Energy, forged a letter of intent (LOI) committing the two private firms to invest $30 million in the Philippines' biofuel industry with the goal of partly supplying the domestic requirements of the market as provided for in the Biofuels Act of 2006.
The PADCC, the DA's implementing arm for its national biofuel feedstock development program, committed to prioritize the development of fuel ethanol and bioenergy projects in the Philippines and provide the necessary support to ensure the success of the would-be projects of FE and Bronze Oak, FE's Philippine affiliate.
“We recognize the indispensable role that private capital play in developing our emerging industries, such as the biofuels sector, which will not only comply with out commitment to promote clean, renewable energy, but will also reduce our dependence on dollar-draining imported fuel sources and will generate hundreds of thousands of jobs in the countryside,” Yap said.
FE Clean Energy began last year to build its bioethanol plant in San Carlos , Negros Occidental, and expects to open this facility in the last quarter of 2008.
During the signing ceremonies, Zabaleta informed Yap that the San Carlos City plant will be fully operational by December 2008, producing 125,000 liters per day of ethanol or 40 million liters per year.
Under the new agreement forged with PADCC, FE Clean Energy will expand its operations in the country by constructing two more plants in Tarlac and Bukidnon.
PADCC also signed a separate agreement with GREEN Inc., represented by its president and chief executive officer Rafael Diego, to jointly develop 100 units of village-level biodiesel processing facilities in coconut-producing areas in the country.
Agbon said the target areas under the memorandum of agreement (MOA) with GREEN include Quezon, Laguna, Batangas and several provinces in Bicol.
Costing $25 million, this project is expected to produce 1,000 liters per day of coconut methyl ester in 12 hours and will initially benefit 5,000 families and 100 farmers organizations and cooperatives over a two-year period beginning 2008.
Under the MOA, PADCC will take charge of “identifying, qualifying through a process of selection and recommending” to GREEN the beneficiaries of up to 100 Greenstar 1000 biodiesel systems for bio-diesel production.
GREEN will take charge of finding financiers that will provide the resources necessary to supply, deliver and install these biodiesel systems.
Last year, President Arroyo signed into law Republic Act 9367 or the Biofuels Act, which aims to ease the country's addiction to imported, dollar-draining and pollution-generating petroleum products. - with Marianne V. Go
