17 December 2009 in Balita-Dot-PH (Online)
UK-based firm to invest US$ 1B in biomass construction in Nueva Ecija
Global Green Power PLC Corporation is infusing over US$ 1 billion to build a 420 megawatts biomass electricity over the next eight years.
David De Montaigne, Global Green president, told reporters that the company is looking at constructing 12 biomass plants with a capacity of 17.5 MW each.
”We will invest US$ 1.035 billion for the entire 420-MW. All of the feasibilities are being done for all of the projects. Each of the projects is 17.5-MW but is expandable to 35-MW,” De Montaigne said.
The plants are also expected to generate 900 direct and indirect jobs in the province, added De Montaigne.
He noted that each plant will deliver an estimated P200 million in the first year of operation and P9 billion over 25 years to the local farming and host community through the purchase of local fuels and associated ancillary services such as transport and operations.
Global Green is 40 percent owned by UK firm Global Green Power PLC and 60 percent owned by local and foreign investors.
Global Green today inaugurated its 17.5 MW biomass plant in San Leonardo, Nueva Ecija through its subsidiary Green Power Nueva Ecija Philippines Inc.
The biomass facility is estimated to cost US$ 43 million.
According to De Montaigne, construction “will take 18 months upon financial closing.”
”So we've done all the preliminary bidding for all of the equipment now,” De Montaigne said.
Green Power Nueva Ecija will utilize agricultural waste and food processing wastes as fuels that are currently burnt in the field or left to rot causing environmental damage and climate change.
The company targets the plant, which can be expanded up to 35 MW, to come on steam by December 2011.
He added they will tap local lenders such as Land Bank of the Philippines, Development Bank of the Philippines and other commercial banks for financing of the power plant.
“We have several lenders offering us the funding. We're just negotiating the best terms for our customers,” he said.
The Ambassadors of the United Kingdom and Finland led the groundbreaking ceremonies.
British Ambassador to the Philippines Stephen Lilly was joined by Finnish Ambassador Heikki Hannikainen, Energy Undersecretary Ramon Santos and Agriculture Undersecretary Bernie Fondevilla.