P500-million multi-fuel plant to rise in Leyte

published July 31, 2009 in BusinessWorld and Leyte Samar Daily Express

PALO, LEYTE — Biogas technology developer Philippine Bio Sciences Co., Inc. (PhilBIO) is investing P500 million over the next 18 months to build the first multi-fuel power plant in Leyte.

The facility, which will produce five megawatts (MW), aims to supply the power requirement of Leyte-based Uytingkoc Development Corp., which runs an ice plant, rice mill, restaurant, hotel, shopping center, and a convention center.

Uytingkoc is investing P50 million through hosting the facility, supplying feed stocks, and putting up power lines to their establishments.
Excess power will be sold to the community, PhilBIO chief operating officer Alberto Pascua said in an interview.

Mr. Pascua said they will use rice husks, coconut shells and coconut husks to fuel the plant.

To fuel a 5-MW plant, close to 400 tons of waste from coconut and rice harvests are needed each day, he added.

"This is a big investment, but this will benefit many people since this will reduce emission of green-house gases and provide cheaper source of power," Mr. Pascua told reporters during groundbreaking ceremonies for the new plant on Wednesday afternoon.

The facility will be built within the premises of Asia Ice Plant and Asia Rice Mill in this town. Both are owned by Uytingkoc.

"We were convinced of the benefits when they introduced the environment-friendly project to us. This ushers the entry of renewable energy in Leyte. We are willing to share the excess non-hazardous power to the community," said Uytingkoc President Go Tic Ching.

All the businesses managed by the Uytingkoc in this town and in Tacloban City consume a total of 2.3 MW, which is sourced from the Leyte Geothermal Power Plant.

Aside from the ice plant and rice mill, Uytingkoc owns and operates Astramart, Leyte Asia Trading, Asia Convention Center, Cindy’s Restaurant, Asia Stars Hotel, and a real estate business.

The Leyte project of PhilBIO is the first plant that will tap various wastes from rice and coconut farms to produce renewable energy.

"Initially, we will operate at 2.5 MW for the first few months and will go for 5 MW in its full operation. We will conduct feed analysis to make sure that our expansion will be sustainable," Mr. Pascua said.

Leticia Garcia, head of PhilBIO’s new business development group, said the project costs P100 million per MW.

It will be constructed under a build-operate-transfer agreement with Uytingkoc, which will own the plant after 15 years.

Ms. Garcia added that they were studying applicable technologies from Japan, China, Europe and America for the plant’s operations.

"For this project, we are considering the high-end technologies since this is the first renewable energy project in Leyte. We are testing the quality of water and soil to find out the kind of technology that we will be using," she added. -Sarwell Q. Meniano