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Eastern Petroleum prepares for biomass power plant construction

Posted on : 31 Aug, 2012

 

It is reported that the construction contract for Eastern Petroleum Philippines Corp’s 20-megawatt biomass power plant will be awarded by October, constructed in Agusan del Norte and expected to be in operation before the end of 2015, providing power to Mindanao. Eastern Petroleum’s Chairman and Chief Executive Fernando L. Martinez said in an interview, “In about two months’ time we will be naming the firm for our engineering, procurement and construction contract. We are still finalizing that.”

 

The feedstock to be used is woodchips from three to seven year old industrial trees, coconut husks and rice husks from the company’s plantation and local plantations, giving returns to the community. The firm requires 4,000 hectares for feedstock and it still needs to secure an environmental compliance clearance.

 

The company is planning to apply for incentives from the Board of Incentives soon. It will spend about $70 million for the power plant which will be funded through borrowings. Mr. Martinez said they already have a buyer for the power, thus allowing it to operate without relying on feed-in tariffs.

 

Under the investments priorities plan of the government, power generation projects are eligible for tax breaks.

 

More on Asia’s biomass industry will be unveiled at 3^rd Biomass Pellets Trade Asia in Seoul on 12-13 September 2012 where Eastern Petroleum Philippines Corp and many other regional biomass players are attending as participating delegates and contributing panellists. To be a part of this summit, Register now or contact hafizah@cmtsp.com.sg for further information.

 

Excerpt taken from Bworldonline.com