30 March 2010 in Business Mirror
Global Green units sign EPC, tech contracts for three power plants
BIOMASS developer Global Green Power Plc. Corp. (GGPC) units have entered into engineering, procurement and construction (EPC) and technology contracts for two 17.5-megawatt (MW) biomass power plants and a letter of intent for a third 35-MW unit for the Philippines.
In a statement, the two units of GGPC, Green Power Panay Philippines Inc. and Green Power Nueva Ecija Philippines Inc., said they have signed EPC contracts with Poyry Energy Inc. for the two 17.5-MW power plants and DP CleanTech for Multi-Fuelled Biomass Boiler Islands for biomass power plants located in Mina, Iloilo on Panay Island, and Nueva Ecija in Luzon, respectively.
Green Power Bukidnon Philippines Inc., another GGPC unit, also signed a letter of intent for another 35-MW plant in Bukidnon, Mindanao.
“DP CleanTech and Poyry Energy have been selected to deliver our biomass power plants due to their best in class and proven engineering, operations and equipment solutions. In addition, GGPC’s close relationships and agreements with DP CleanTech and Pöyry will enable our rapid roll-out of 420 MW of biomass power plants to help alleviate the severe energy crisis gripping the Philippines,” Steven Waterfield of Global Green Power Plc. said.
He added that GGPC plants are strategically located within the Philippines to take advantage of abundant biomass resources, the use of which will deliver significant additional income to the farming community while providing clean, stable, grid-connected and base-load renewable energy.
Waterfield said the contracts will become effective when the financials close for each.
GGPC’s biomass power plants will provide grid- connected, sustainable, decentralized, clean, base-load renewable energy, utilizing abundant local agricultural waste as an indigenous fuel while delivering significant additional income and employment to the agricultural sector within the Philippines.
The GGPC subsidiary companies have secured long-term 25-year biomass supply contracts through sister company Global Biomass Plc. Corp. The projects have been fast-tracked at the request of the Department of Energy (DOE) to help alleviate the severe power shortages within their respective regions.
Poyry Energy Inc. as EPC contractor is a member of Poyry Plc., the fourth-largest engineering consultancy in the world, and has successful experience in delivering small to mid-size turnkey power-plant projects, especially in developing countries. Renewable energy is increasingly becoming a choice when new power plants are planned.
Contributing to climate-change mitigation with sustainable solutions for energy production is in line with Poyry’s stated ambition for being a thought-leader in engineering balanced sustainability.
The power will help address the severe power crisis currently being experienced in the Philippines. The biomass power plants are to be built to strict environmental standards, in accordance with the latest World Bank and International Finance Corp. recommendations.
“We are very excited about the GGPC project as they share our vision of biomass, the need for scale, track record and quick roll-out to become a market leader and a national champion in renewable energy in Philippines,” Kai Johan Jiang, Dragon Power Group chairman, said.
He added that winning the deal has come at an exciting time for DP CleanTech, particularly after the recent strategic agreement made between holding company Dragon Power and China Construction Bank for a $4-billion credit line, which will give the group access to resources to continue the rollout of biomass power plants in China.
Technology is being provided by China-based DP CleanTech. The three new state-of-the-art biomass power plants will utilize agricultural waste such as rice husk, sugar cane residue and rice straw.
DP CleanTech owns some of the world’s foremost high efficiency biomass technology and was chosen to supply the project due to its experience in biomass systems and its competence in dealing with mixed fuels.
National Bio Energy, DP CleanTech’s sister company, has demonstrated a biomass power-plant model to great effect in China with over 400 MW of installed capacity that will increase to around 1,000 MW by the end of 2011.