BOI grants incentives to P155-M rice husk co-generation project

A P154.946 million co-generation project using rice husks as fuel source has been approved by the Board of Investments (BOI) for registration on a pioneer status, entitling it to a longer income tax holiday period of six years.

The project proponent, La Suerte Rice Mill, sought the BOI incentives for its one megawatt rice husk fired power plant.

The co-generation plant would involve the installation and commissioning of a modern rice husk heat and power system with an electric power output of one megawatt and process steam supply of 1.62 metric ton per hour to service the power and steam requirement of La Suerte Rice Mill.

The co-generation project is expected to bring the following benefits:

• improve the quality and reliability of electric power supply to the entire rice milling operation;

• lower the cost of power and rice husk disposal cost, since the rice husk will be used as fuel to generate electric power and steam;

• meet the new demand for power and steam with the ongoing mill expansion;

• potentially introduce new revenue stream from the sale of rice husk ash;

• potentially introduce another revenue stream from the sale of carbon credits;

La Suerte Rice Mill is a single proprietorship owned by Reynaldo Tan.

The total power output of the co-generation plant will supply the power requirement of the entire rice mill and the excess power will be sold to Green Harvest Rice Mill, which is only 20 meters away from La Suerte.