MANILA, Philippines - The Department of Energy (DOE) has granted Eastern Petroleum Corp., an independent oil company, the permit for the first phase of its biomass project. This was disclosed by Eastern Petroleum chairman Fernando Martinez who expressed optimism on the project’s success. “We signed the biomass renewable operating contract last Tuesday,” Martinez said.
The oil company has incorporated Caraga Renewable Power Corp. (CARE) as its corporate vehicle for biomass power facility, which will come in two phases.
The first phase consists of 23.5 megawatts (MW) worth “close to $100 million” while the second phase “will comprise another 23 MW, Martinez said.
The company is on track to operate the first phase of the project by 2016 with US-based Wellons Energy Solutions as the technical provider for the project.
“The power plant will be located at the heart of export processing zone where we are going to cover a fix term of up to 10 years. We are already in the pre-development stage. We hope to secure an ECC (Environmental Compliance Certificate) 60 days from now,” he said.
Eastern Petroleum is aiming to tap electric cooperatives that are experiencing power outages because of insufficient supply. He said the biomass facility can reduce power rates by up to 40 percent or roughly P5 per kilowatt-hour of savings.
The plant marks the independent oil firm’s entry into the biomass sector. Eastern Petroleum also launched last year its liquefied petroleum gas (LPG) brand EC Gas.
Martinez said the 23-MW biomass facility, to rise in Agusan del Sur, would source its feedstock requirements from a 10,000-hectare industrial tree plantation in the province.
The independent oil company earlier signed an agreement with the Manobos Tribal Council for the cultivation of an industrial tree plantation to secure the feedstock requirements of the plant, Martinez said.
He expects the project to assure the livelihood of the community without the slash and burn or kaingin practice.