MANILA, Philippines - Alsons Consolidated Resources Inc., a member of the Alcantara Group of companies, is pushing through with its proposed P2-billion bioethanol plant with the financial closing of the project targeted by the end of the year.
ACR president Tomas Alacantara said the company is in continuous discussions with the Electricity Generating Public Company of Thailand (EGCO) and Toyota Tsusho for the planned project. “No decision has been made yet, probably end this year,” Alcantara said.
The proposed plant with a projected production capacity of 100,000 liter per day, is intended to take advantage of the expected surge in demand for alternative fuels. It is expected to break ground in the middle of next year.
Funding for the project will be supported by equity and borrowings. The International Finance Corp., the private sector financing arm of the World Bank, is interested in extending a loan to help jumpstart the project.
ACR hopes to capitalize on the anticipated growth in demand for fuel with the mandatory five percent blend of bioethanol by May 2009. Based on a forecast by the Department of Energy, domestic bioethanol demand is seen to reach 309 million liters per annum by 2009 and will increase further to 664 million liters by 2011 and 713 million liters by 2013.
The country needs around 15 to 20 ethanol plants by 2011 to meet the mandatory blend requirement of the Biofuels Act of 2006.
ACR is studying options on its possible investment in a 200-megawatt coal-fired power plant in Maasim, Sarangani. The project, in partnership with Egco, estimated to cost at least $450 million.
The proposed coal-fired power plant aims to help stabilize the Mindanao power grid by 2011, with two incremental expansions of 350 MW each within 15 years from the plant’s full operation.
When completed, the power plant will supply 15 percent of the region’s power needs.
Peak demand for the Mindanao region is estimated at 1,440 MW, rising to 1,750 MW by 2015.
The Philippines could be at risk from a power crisis by 2011 if new generation plants are not built and ageing facilities are not rehabilitated. The bulk of the country’s power generation facilities is located in the main island of Luzon.