Energy Secretary Angelo Reyes has assured that government will provide fiscal incentives to energy stakeholders who will invest in environment-friendly renewable energy projects like biomass, solar and wind energy, bio-ethanol and fuel cell plant.
Reyes said the DOE also intends to provide income tax holiday for six years and low tariff to encourage development of various industries and putting up of industrial facilities in the country that will provide employment income.
“The DOE would provide non-fiscal incentives to pioneering project in compressed natural gas (CNG) or the natural gas vehicle program for public transport and energy-related projects,” he explained.
The secretary made the assurance after the Board of Investment gave tax benefits to the Filipino-owned Euro-Med Laboratories Phils. Inc.’s P1. 324-billion fuel cell plant in Dasmariñas, Cavite.
In the nearby town of Magallanes, the Cavite Biofuels Producers Inc., in partnership with the Cavite Sugarcane Planters Multi-purpose Cooperative, will invest P3.3 billion to develop a 125,000 liter-per-day bioethanol distillery.
The BOI has given tax benefits to the pioneer project of the pharmaceutical company because of the magnitude of investment. The company expects the project to be finished by June 2010. It will employ 980 people.
Euro-Med’s project will also help the company reduce its dependence on commercial fuels because the technology will only use CNG and hydrogen to produce electricity. Fuel Cell 2000, it said, would remit water as byproduct.
Reyes said the DOE endorses qualified pioneering energy-related projects after appropriate evaluation and assessment. He also encourage local and foreign investors to initiate similar project, which is a bold response to the rising oil prices and the looming adverse effects of climate change.
According to Reyes, the fuel cell facility will contribute to the development of fuel cell industry in the country “which may be applicable to the energy, commercial and manufacturing industry.”
Fuel cell technology is one of the most efficient and environment-friendly energy sources. It is a low in emissions that some areas in the United States have exempted them from air permit requirements.
Fuel cells are quiet, which allows for sitting close to business or residence. They are also durable and rugged, so they can withstand any terrain or whether condition.
“Fuel cells contribute to the improvement of efficiency in power utilization and thereby reduction in the use of imported crude oil,” Reyes said.
The fuel cell plant is a valuable project as it will address two of the most compelling challenges at this time, which are energy security and climate change.
Reyes added that the provision of BoI’s tax incentives to the proponent with pioneering project like the fuel cell technology of the local pharmaceutical company will be a factor to the enhancement of technical skills and economic development. — Donnabelle Gatdula