26 June 2009 in The Philippine Star
UK group inks P27-billion deals with RP biomass firms
MANILA, Philippines - UK-based Global Biomass Plc Corp. (GBC) has signed three biomass supply contracts that will generate P27 billion worth of direct and indirect economic benefits over the 25-year contract period.
GBC signed supply contracts with related companies Green Power Panay Philippines Inc., Green Power Nueva Ecija Philippines Inc. and Green Power Pangasinan Philippines Inc. Each company will put up a 15-megawatt biomass power plant in their respective locations.
The biomass supply contracts will provide biomass derived from farm wastes such as corn and rice straw, sugar cane waste and other agricultural residues.
GBC said these waste are currently burnt in the field or left to rot causing methane, a green house gas that significantly contributes towards climate change.
The effects of climate change are widely responsible for the increasing severity of global weather patterns that are adversely affecting the Philippines archipelago as evidenced by the devastation caused Typhoon Frank in 2008.
“The injection of cash into the local community over the 25-year life of each biomass supply contract can be as much as, or even exceed P9 billion through biomass and ancillary services supply such as transport, storage and biomass fuel preparation,” said Gordon Thomson, chief financial officer of Global Biomass.
“This is exactly what will happen at the Municipality of Mina in Iloilo, Panay Island where Green Power Panay
Philippines Inc. based their 15-megawatt biomass power plant.”
The biomass plant has signed a 25-year electricity supply contracts with “A” rated electric cooperatives Ileco 1 and Ileco 2 in Iloilo.
The local communities will benefit tremendously from this project receiving income from GBC’s purchase of biomass fuel while receiving clean, renewable, cost efficient energy from the power plant’s operation, Thomson said.