29 March 2010 in www.ecoseed.org
Poyry reaches Philippine islands to build biomass projects
Finnish consulting and engineering company Pöyry P.L.C. has bagged contracts worth 46 million euros ($62 million) to build two biomass power plants for the Philippine subsidiary of a British developer of renewable energy projects.
The two 17.5-megawatt multifuel biomass plants, worth about 23 million euros each, will be located in the provinces of Mina Iloilo in Western Visayas and Nueva Ecija in Central Luzon. Multifuel biomass plants can use more than one type of biomass feedstock.
Pöyry may also build a third plant with a capacity of 35 MW in Bukidnon, Northern Mindanao. Luzon, Visayas and Mindanao are the three major islands of the archipelagic Southeast Asian country.
The plants are for Global Green Power P.L.C. Corporation, which is 40 percent owned by Britain-based Global Green Power P.L.C.
Agricultural wastes will fuel the biomass plants to produce electricity that is expected to help the country address an energy crisis. Earlier in March, President Gloria Macapagal-Arroyo has declared a power crisis in the southern island of Mindanao due to reduced water levels in hydropower plants caused by El Niño.
The Philippines sources most of its energy needs from geothermal and hydropower sources.
Pöyry said the power plants will be built according to strict environmental standards and the latest recommendations from the World Bank and International Finance Corporation.
In 2007, Philippine-based San Carlos Bioenergy Inc. contracted Pöyry for 10 million euros to provide project management and construction services, as well as supplies for balance-of-plant facilities, to the first bioethanol plant in the country.
The Philippines expects biomass to be one of the major sources of its energy in the coming years, especially because of the abundant bagasse resources in the country. Bagasse is the fibrous residue from sugar cane that is being used to fuel biomass plants.
Based on data from the Department of Agriculture and Department of Environment and Natural Resources, the Philippines’ agricultural sector produced 271.7 million barrels of fuel oil equivalent in 2003.
Increasing this potential by 1.9 percent annually will enlarge the biomass supply potential to up to 323.1 million barrels of fuel oil equivalent by 2012.
Pöyry (OMX:POY1V) is experienced in conducting small to mid-size turnkey renewable energy projects, particularly in developing countries. The company’s net sales reached 674 million euros in 2009.
In February, the company received a contract worth 6.1 million euros to conduct feasibility studies and design, as well as supervise the construction of the Uma Oya hydro power plant in Sri Lanka from Farab International of Dubai.
Earlier this month, it also acquired two contracts worth 3.4 million euros to supervise the Ashta run-of-river power plants in Albania.