Bronze Oak Philippines Inc. (BOPI) is planning to invest P6 billion on two ethanol-related projects.
Zabaleta and Co. (ZCO), a partner of Bronzeoak Ltd. of UK in BOPI, is eyeing to construct two ethanol processing plants in Southern Bukidnon and Pampanga.
According to Jose Maria Zabaleta of ZCO, “the Bukidnon plant will be located on the fringes of the existing cane industry. But the projects are in the planning stage.”
BOPI was established in June 2003 for the purpose of developing biomass new renewable energy projects in the Philippines.
“We’re looking at Bukidnon. We also want to put up one in the lahar lands of Pampanga,” he said.
BOPI reportedly bought a 24-hectare property in Brgy. Labuagon, Kibawe, Southern Bukidnon which will be used for the planned ethanol plant. Bukidnon is close to North Cotabato, where the corn areas can be used for sugar planting.
Ethanol, also known as ethyl alcohol or grain alcohol is a type of alternative fuel being groomed to substitute traditional, oil-based fuels like gasoline and diesel.
Zabaleta said the two ethanol plants will have a capacity of around 120 million liters per day and will be designed similar to the ethanol facility in Negros Occidental owned by San Carlos Bioenergy Inc. (SCBI).
“Each project will cost at least P3 billion because of the electricity component and we also capture CO2 (carbon dioxide) and we sell it to the beverage industry,” he said.
At present, SCBI’s plant is composed of an integrated sugar mill, cogeneration plant and distillery complex for ethanol production in San Carlos. It is capable of producing 100,000 to 120,000 liters of anhydrous ethanol (99.5 percent purity) daily and likewise produce nine megawatt (MW) of electricity. It will be fueled entirely from bio-mass resources particularly sugarcane which is grown in the area.
The SCBI, which will supply ethanol requirements of semi-government Petron Corp., will be fully operational by January 2009 in time for the implementation of the five percent blend in ethanol on gasoline products.
“The plant will be operational next year in time for the implementation of the law. We hope we can start quick,” Zabaleta said.
Zabaleta said they see no problem in funding for the ethanol plants despite the high construction cost.
“There is no problem for funding for industrial component, the problem is that the supplier has no funding. Who’s funding the farmers?” he said.
Earlier, British firm Bronzeoak said it is committed to construct two power plants in the Visayas as part of its commitment to help the country in promoting the development of renewable energy sources.