MANILA, Philippines - A Filipino-Japanese-Taiwanese consortium has firmed up a $120-million (roughly P6 billion) investment for a bioethanol production venture in Isabela which promises to be the biggest biofuel enterprise in the country.
The consortium Green Future Innovations, Inc.’s 54-million liter ethanol plant in San Mariano, Isabela is planned to be fully operational by 2012.
Green Future is a newly formed venture among Japan’s Itochu Corp. and JGC Corp., the Philippine Bioethanol and Energy Investments Corp., and Taiwanese holding company GCO.
The company will manufacture ethanol from sugarcane that will be harvested from an 11,000-hectare sugarcane plantation located in and around San Mariano, Isabela’s 30-kilometer radius. It will also convert bagasse or sugarcane residual to electricity in a 19-megawatt power plant, projecting a 13-MW contribution to the Luzon grid in the future.
Green Future investors and officers met with President Aquino in Reina Mercedes, Isabela last Friday when he addressed the National Corn Congress that was held there. The group was given the chance to personally convey to the President details of their business venture.
It was learned that Itochu and JGC have been looking into large-scale bioethanol and power supply businesses across Asia, but are particularly drawn to the Philippines because of its Biofuels Law and the Renewable Energy Law.
“Among our other Asian prospects, the Philippines is the most advanced in its implementation of a biofuels law. We are glad to be attuned to the market demand, especially as the mandated five percent blend of ethanol in gasoline will climb to 10 percent by next year,” said Green Future marketing consultant Erwin Co, who also represents Itochu Corp.
According to local investor and chief administrative officer Alexander Uy, Green Future relates to the main objectives of the law, among which is energy self-sufficiency in the country.
“There’s great value for a country to be self-sufficient in fuel, even if it’s just five percent to begin with. Right now we import 100 percent of our fuel needs, and foreign exchange goes to the rich Middle Eastern nations. Through partnerships like this, we procure ethanol domestically and provide added value for the low-income Filipino farmer,” Uy said.
With a 54-million liter plant capacity, Green Future will be the largest domestic producer, followed by current leaders San Carlos Bioenergy Inc. (SCBI) with 37 million and Roxol Bioenergy Inc. with 30 million liters.
Going by the 10 percent ethanol requirement in the law starting 2011, the country will need 440-million liters. The law allows importation only when shortage arises, a Green Future study showed.
“Generating a 15,000-strong employment base in the farm site alone, this project hopes to contribute to the development of San Mariano, which is underdeveloped,” Uy said.
He said the plant site, at its operational stage, will employ around 500 people. The economic bustle will reportedly include the logistics side, where 8-10 trucks are estimated to ply between San Mariano and Manila daily.
“A substantial part of our farmland is idle land right now. We’ll be going from nothing to something, and with all these opportunities for the municipality, we expect a net-positive impact,” said Uy, who cited the preferential tariff rates and biofuel incentive programs as among the other attractions of the local biofuels and renewable energy laws.
Green Future also boasts of generating additional power out of biomass from bagasse.
Uy added that putting bagasse to good use could support more people economically. “Agricultural waste was once nothing to a farmer. Now, there’s additional earning in every hectare he works on,” he said.
Itochu is a trading company engaged in insurance, finance, real estate, electronics, food, logistic services, and other investments. JGC on the other hand, is a global engineering company.