Source: Biofuels International
Basic Energy, formerly Basic Petroleum, is partnering with Metro Pacific Investments Corp (MPIC) for a P6-billion (€90 million) ethanol project in the Philippines.
The two companies are assessing plans for a joint venture company that will engage in the production of ethanol and other alternative fuels.
A due diligence study is now being conducted by MPIC, which would likely take a controlling stake in the joint venture, Basic Energy president and COO Oscar de Venecia Jr, says.
The companies will initially construct two bioethanol plants at a cost of P3 billion each. The total amount would be funded through a combination of debt and equity.
The first plant would be built on a 22-hectare property in Zamboanga and is slated for completion by early 2009. The plant will have a capacity of 150,000 litres of ethanol a day.
Jose Reyes Jr., executive VP and treasurer of Basic Energy, says the country would need at least 600 litres of ethanol a year beginning 2011. The demand would be driven by the mandatory 5% blend of ethanol with petrol by May 2009.
‘We want to get started with our ethanol projects by January. When strong demand starts, we want to be there already,’ Reyes comments.
Filed under: Philippines
