German firms seek energy projects in Phl

MANILA, Philippines - Eight German technology firms have expressed interest in partnering with local companies for biomass and biogas projects in the country.

Representatives of the German technology providers were in the country last week for the Philippine-German Forum for Energy from Biomass and Biogas held at the New World Hotel in Makati and organized by the European Chamber of Commerce of the Philippines, the Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) and the German-Philippine Chamber of Commerce and Industry.

The eight German companies are Vastani GmbH, Eckrohrkessel GmbH, Envitec Biogas AG, GTP Solutions GmbH, Binder GmbH, Ascentec GmbH, Novis GmbH and Pregobello GmBH.

The representatives of the firms noted that the Philippines has an abundance of agricultural residues which could be used for bioenergy such as sugarcane, rice hulls, coconut husks and farm residue materials which remain unutilized.

The German companies can provide technological support to operate biomass and biogas plants in the country.

Among the eight companies, four are offering good technology for biogas plants including small plants with a capacity of one  megawatt.

The German delegation was  accompanied by technology experts and representatives from the Federal Ministry of Economics and  Technology and GIZ.

GIZ is a Germany-based technical advisory body for trade, climate change mitigation and adaptation, sustainable urban mobility, and fund management.

German-Philippine Chamber of Commerce and Industry president Gunther Matschuck said the alternative energy that could be produced by the German firms in partnership with Philippine companies would be for domestic consumption.

“They would like to build plants, some of them are are also ready to go into partnerships and operation,” he said.

Matschuck said the German firms  are checking the available feedstock to determine the technology applicable for the  production of bioenergy.

The delegation plans to visit selected biomass and biogas projects in Southern Luzon to explore on site challenges and opportunities. 

Matschuck noted that potential projects could substantially boost employment in the countryside because manpower would be needed from construction to operation of the plants.

The German energy companies visited the Philippines to introduce innovative solutions on bioenergy for the Philippine market and to identify local partners and projects, Martial Beck, vice-president of the European Chamber of Commerce of the Philippines (ECCP) said in a press conference at the end of the forum attended by over 200 representatives from the Philippine biomass and biogas sectors.

In an interview, Beck said that the eight firms are happy with the quality of projects in the Philippines.

“They were really very happy with the quality of the projects they were informed about and therefore they are very optimistic. They also understand that this is not something that happens very fast because even in Germany it took some time before all of these were implemented so it is a normal situation that it takes time,” he said.

Beck acknowledged that the different German companies are aware that there are good projects and are now identifying which ones they would invest in with the help of some loans.

“Some of them said that they are willing to partially invest in some projects. The banks such as Bank of the Philippine Islands (BPI) and Banco de Oro (BDO) are also willing to allocate the loans. Therefore we have all the ingredients necessary now to go and start biomass and biogas, projects here in the Philippines,” Beck said.

Werner Siemers, GIZ consultant for energy from biomass and biogas said that rising prices of fossil fuel, coupled with the increased demand for energy create a bigger need to explore alternative energy sources.

“Fortunately for the Philippines, it already has many things in place to make possible the shift to renewable energy, particularly biomass and biogas, which is produced after a process of fermentation of biomass like manure, sewage, municipal waste, green waste, plant material and crops. In addition, the leftover by-product of biogas is also a highly nutritious fertilizer which can be used in farms,” Siemers said in a separate statement.

Biomass is a source of renewable energy which is derived from plants or plant-derived materials.

Biogas, meanwhile, refers to gas produced by the breakdown of organic matter in the absence of oxygen. It is also a renewable energy source.

GIZ consultant for bioenergy Werner Siemers said that rising prices of fossil fuel coupled with the increased demand for energy have brought about a stronger need for the Philippines to explore alternative energy sources.

“Fortunately for the Philippines, it already has many things in place to make possible the shift to renewable energy, particularly biomass and biogas,” he said.

The Department of Energy is  implementing  a  feed-in-tariff scheme that provides incentives to local and foreign investors who intend to pour in resources for  the development of renewable energy in the country.

“The feed-in-tariff can spark renewable energy by making investments instantly bankable,” said Matschuck.