MANILA, Philippines - Ecoenerhiya, a local renewable energy firm, is eyeing to put up a 10 megawatt (MW) biomass project in Quezon.
Antonio Lopez, Ecoenerhiya director for business development, said the project will cost $36 million or P1.7 billion.
At least P1.2 billion of the P1.7 billion will be financed through borrowing and the remaining cost will be coming from equity.
At present, Lopez said they are negotiating with Banco de Oro for a possible financing package for the project. They expect to firm up the borrowing by April this year.
This project will be undertaken through a special purpose vehicle company named Unisan Biogen. Lopez is the president of Unisan.
Lopez said they hope to start the construction of the plant by May 2010 and expect to finish it by June 2011.
According to Lopez, the 10 MW biomass project forms part of the total 24 projects the company is eyeing. About 12 of these projects, he said, are expected to be carried out within a five-year period.
He said they also welcome entry of investors to take part of these projects.
PNOC-Renewables Corp. (PNOC-RC), he said, is one of those being eyed to become Unisan’s partner in some of the proposed biomass facilities.
“We are talking with investors, but we are not sure yet whether we will tie up with PNOC-RC. We are looking at all possibilities, he said.
Based on the business model that the company is implementing, it will develop the plants, take minority stake and sell equity to other investors including PNOC-RC and some foreign firms.
The 10 MW first phase, he said, would be used by the company as a test case to determine if they will pursue their plan to put up more biomass projects.
“Once we have the first 10 MW then we will have our proof of concept. The 10MW will located in Quezon, all 24 will be 10 MW and will use similar technology,” he said.
He said they are setting their sights at Mindanao to locate most of these projects.
“We have the sites for all 24 but different stages of development. The bulk of the sites will be in Mindanao,” he said.
The company has already signed a supply agreement with Quezon Electric Cooperative for the 10MW biomass facility.