29 March 2010 in BusinessWorld
Global Green Power taps two firms for biomass power
BRITAIN’S GLOBAL Green Power Plc. has appointed a contractor for two biomass power plant projects, kicking off the company’s long-term goal of developing 420 megawatts (MW) of renewable power in the country.
In a statement, Global Green Power said it had signed engineering, procurement, and construction contracts with Poyry Energy, Inc. for 17.5-MW biomass power plants in Mina, Iloilo and Nueva Ecija. The company has also signed deals for the delivery of multi-fuelled biomass boiler equipment for the two plants.
The biomass power plants will use local agricultural waste such as rice husks, sugar cane residue, and rice straws in the areas to produce power. China-based DP CleanTech will provide the technology.
Global Green Power plans to build 12 biomass power plants that will generate 420 MW of power in the next eight years.
“DP CleanTech and Poyry Energy have been selected to deliver our biomass power plants due to their ... engineering, operations and equipment solutions,” Steven Waterfield, Global Green Power chief executive officer, said in a statement.
“[Global Green Power’s] close relationship and agreement with DP CleanTech and Poyry will enable our rapid rollout of 420 MW of biomass power ... [Global Green Power’s] plants [will be] 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,” Mr. Waterfield added.
Global Green Power said the contracts for the plants would become effective once financial closings for each project are achieved.
Investors have been flocking to renewable energy projects as a result of a law passed in 2008.
Among the fiscal incentives offered by Republic Act No. 9513 or the Renewable Energy Act are income tax holidays for the first seven years of operation, tax-free carbon credits from renewable energy projects, and duty-free importation of machinery and equipment for the first 10 years of operation. Power from renewable energy is also exempted from the value-added tax.
Non-fiscal incentives, meanwhile, include the renewable energy portfolio standard, which requires mandatory utilization of renewable energy power in grids, and feed-in tariffs.
From the current 4,500 MW of capacity from renewable energy, the Department of Energy is looking at doubling the figure to 9,000 MW in the next 10 years. -- Jose Bimbo F. Santos