BOI grants tax perks to Roxol Bioenergy Corp

The Board of Investments (BOI) has given tax perks to the P1.138 billion investment of Roxol Bioenergy Corp. (RBC).

RBC, the bio-ethanol arm of listed sugar conglomerate Roxas Holdings Inc. (RHI) filed an application with BOI as a new producer of bioethanol potable ethanol.

The component of the project that would make bio-ethanol was given pioneer status since it is certified as one of the non-conventional fuels being aggressively promoted by the government. 

The basic raw material is molasses which are sourced from companies producing raw sugar.

The manufacturing plant would require about 365 tons of molasses everyday to about 100,000 liters daily of bioethanol.

On the other hand, the segment that produces potable ethanol was given non pioneer status since it accounts for only 16.7 percent of the total production volume and falls under the listing of agriculture/agribusiness- agricultural by product of the 2008 investment priorities plan (IPP). 

The plant is expected to be completed by January 2010.

Earlier RHI announced that it has approved the offer of Indian firm KBK Chem-Engineering Pvt. Ltd. to construct a 100,000 liters-a-day cane juice or molasses ethanol plant in La Carlota City, Negros Occidental.

KBK Chem-Engineering provides tailor-made solutions in the field of distilleries, ethanol, biofuels and cogeneration power systems for companies in India, Philippines, Thailand, Malaysia, Vietnam, Myanmar, Africa, East Europe and Latin America.

The plant will be built next to Central Azucarera de La Carlota in La Carlota City, a sugar mill owned by CADP Group Corp., a subsidiary of RHI.