Brunei keen on joint venture with PNOC for biodiesel plant in RP

Brunei National Petroleum Co. has expressed interest in a joint venture with the Philippine National Oil Co. (PNOC) to put up a biodiesel plant in the Philippines.

Documents obtained by The STAR showed that Petroleum Brunei’s Iskandar HJ Yahya has indicated the company’s interest to PNOC president Pedro Aquino Jr. in a letter dated Jan. 18, 2007.

"During our discussion, you have indicated that PNOC was looking for potential partners to build a biodiesel plant in the Philippines.  Our CEO also expressed Petroleum Brunei’s keen interest to explore opportunities to work together on this project," Yahya said in the letter.

Yahya also urged PNOC to submit a business proposal. "In order to further your proposal, we would appreciate it if you could forward us a copy of your investment proposal," the official said.

During a recent Asean Council on Petroleum (ASCOPE) meeting in Indonesia, PNOC officials have talked with a number of possible investors for various projects particularly in the development of renewable energy and alternative fuels.

In a related development, Aquino said PNOC is also considering other sources for biofuels.

Aquino said he had discussions with International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) director general William Dar for a possible joint cooperation in the area of biofuels development, especially on sweet sorghum for ethanol production, and jatropha.

Dar was the Secretary of Agriculture during President Estrada’s term.

The PNOC chief welcomed the ICRISAT initiative, saying this would provide PNOC the necessary expertise in managing alternative fuels and meet the priority project of President Arroyo’s administration.

"Ethanol is a good substitute produced from surgarcane that can be used as an additive in gasoline for public transport, while biodiesel produced from oil-bearing seeds like jatropha can also be blended with petroleum diesel for transportation units, among others," Aquino said.

ICRISAT is a non-profit, apolitical, international organization devoted to science-based agricultural development. It is also one of the 16 future harvest centers of the consultative group on international agricultural research (CGIAR). It has a staff of about 900 and an annual budget of $22 million.

President Arroyo has directed the PNOC to take the lead in biofuels development.

With this directive, Aquino has vowed to put in his priority list of projects this year those involving the development renewable energy and alternative fuels.