Chinese group to build three ethanol plants in the Philippines
Investments in the Philippines' biofuels industry are speeding up. The country has been identified by consultants as one of the countries in the South that both have the agro-ecological resources (land, climate, suitable crops) and the right the social, economic and policy frameworks as well as an excellent geographic location needed to become a highly successful biofuel production center that can supply East Asia (earlier post).
For this reason, a growing number of companies from Asia (especially China and Japan) and the US are establishing energy plantations and biofuel plants in the island state, often teaming up with local companies and farmers. The latest in the series is Nanning Yong Kai Industry Group Co Ltd, a Chinese agricultural firm that will spend a total of US$105 million to build three ethanol refineries in partnership with three Philippine companies, official documents from the agriculture department show.
The company will start work on the refineries this year, with the three facilities expected to be completed in 18 to 24 months, according to documents obtained by reporters from the Philippine Agriculture Department.
The three ethanol plants would be built at a cost of US$35 million each, making it medium scale plants with a capacity of 150,000 liters per day. Feedstocks will be cassava and sugarcane . The Chinese firm has signed agreements with two agricultural firms based in southern Negros Occidental province, namely BM SB Integrated Biofuels Co and Negros Southern Integrated Biofuels for the production of ethanol:
biomass :: bioenergy :: biofuels :: energy :: sustainability :: ethanol :: sugarcane :: cassava :: Philippines ::
Nanning Yong Kai also signed a separate agreement with One Cagayan Resource Development Inc based in northen Cagayan Valley province. Under the deal, One Cagayan would provide the land and cultivate sugar cane or cassava which would be converted into ethanol at the new facility to be built by Nanning, which has a production capacity of not less than 150,000 liters per day.
There has been a rush to build ethanol facilities after the Philippines’ biofuels law took effect in May. The law requires a 1 per cent ethanol blend in diesel, while gasoline should have a 5 per cent blend within two years. The mandated ethanol blend will increase to 10 per cent after four year.
Amongst the most recent investors are Japan's Cosmo Oil (earlier post), Eastern Petroleum Corp. which teamed up with Guanxi Group of China for an ethanol project using cassava as feedstock while PNOC-Alternative Fuels Corp. is planning an ethanol plant project worth US$ 1.3 billion (on Chinese investments, see here, on PNOC's biofuel activities, here).
US firm E-Cane Fuel Corp. recently entered the sector by investing €111/US$150 million to put up a fully integrated ethanol processing facility in Central Luzon based on sugarcane (previous post).
And the latest in the series is the joint FE Global/Asia Clean Energy Services Fund L.P. and FEGACE Asia Sub-Fund L.P. investment in Biofuels Resources Inc. (BRI). The Funds will investwith BronzeOak Philippines Inc. in a series of four special purpose companies focused on ethanol production in the Philippines.
San Carlos Bioethanol Inc. is the first in this series of investments. The project will produce and sell 125,000 liters of ethanol daily, using sugar cane juice from local growers as a raw material. One of the most interesting aspects of the project relates to the project’s use of contracts with multiple sugar cane suppliers to secure a stable price for approximately 50% of the raw material needs of the plant.
For this reason, a growing number of companies from Asia (especially China and Japan) and the US are establishing energy plantations and biofuel plants in the island state, often teaming up with local companies and farmers. The latest in the series is Nanning Yong Kai Industry Group Co Ltd, a Chinese agricultural firm that will spend a total of US$105 million to build three ethanol refineries in partnership with three Philippine companies, official documents from the agriculture department show.
The company will start work on the refineries this year, with the three facilities expected to be completed in 18 to 24 months, according to documents obtained by reporters from the Philippine Agriculture Department.
The three ethanol plants would be built at a cost of US$35 million each, making it medium scale plants with a capacity of 150,000 liters per day. Feedstocks will be cassava and sugarcane . The Chinese firm has signed agreements with two agricultural firms based in southern Negros Occidental province, namely BM SB Integrated Biofuels Co and Negros Southern Integrated Biofuels for the production of ethanol:
biomass :: bioenergy :: biofuels :: energy :: sustainability :: ethanol :: sugarcane :: cassava :: Philippines ::
Nanning Yong Kai also signed a separate agreement with One Cagayan Resource Development Inc based in northen Cagayan Valley province. Under the deal, One Cagayan would provide the land and cultivate sugar cane or cassava which would be converted into ethanol at the new facility to be built by Nanning, which has a production capacity of not less than 150,000 liters per day.
There has been a rush to build ethanol facilities after the Philippines’ biofuels law took effect in May. The law requires a 1 per cent ethanol blend in diesel, while gasoline should have a 5 per cent blend within two years. The mandated ethanol blend will increase to 10 per cent after four year.
Amongst the most recent investors are Japan's Cosmo Oil (earlier post), Eastern Petroleum Corp. which teamed up with Guanxi Group of China for an ethanol project using cassava as feedstock while PNOC-Alternative Fuels Corp. is planning an ethanol plant project worth US$ 1.3 billion (on Chinese investments, see here, on PNOC's biofuel activities, here).
US firm E-Cane Fuel Corp. recently entered the sector by investing €111/US$150 million to put up a fully integrated ethanol processing facility in Central Luzon based on sugarcane (previous post).
And the latest in the series is the joint FE Global/Asia Clean Energy Services Fund L.P. and FEGACE Asia Sub-Fund L.P. investment in Biofuels Resources Inc. (BRI). The Funds will investwith BronzeOak Philippines Inc. in a series of four special purpose companies focused on ethanol production in the Philippines.
San Carlos Bioethanol Inc. is the first in this series of investments. The project will produce and sell 125,000 liters of ethanol daily, using sugar cane juice from local growers as a raw material. One of the most interesting aspects of the project relates to the project’s use of contracts with multiple sugar cane suppliers to secure a stable price for approximately 50% of the raw material needs of the plant.
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