30 March 2010 in The Manila Times.net
Biomass developer secures power plant contracts
Biomass developer Global Green Power PLC Corp. has secured the engineering contracts for the construction of two renewable energy projects in Iloilo and Nueva Ecija.
Global Green, through its subsidiaries Green Power Panay Philippines Inc. and Green Power Nueva Ecija Philippines Inc., recently signed the engineering, procurement and construction contracts with Poyry Energy, Inc. and DP CleanTech for the two 17.5-megawatt biomass power plants in Iloilo and Nueva Ecija,
The two plants will cost $43 million each, subject to financial closing.
“It will take 18 months to construct the plant upon financial closing. So we’ve done all the preliminary bidding for all of the equipment now. We have several lenders offering us the funding. We’re just negotiating the best terms for our customers,” David De Montaigne, Global Green president, said.
Steven Waterfield, Global Green chief executive officer, said DP CleanTech and Poyry Energy were selected to deliver the biomass power plants because of their proven engineering, operations and equipment solutions.
Pöyry Energy Inc. is a member of Pöyry PLC, the fourth largest engineering consultancy in the world, while DP CleanTech of China is a leader in biomass technology.
“[Global Green’s] close relationships and agreements with DP CleanTech and Pöyry will enable our rapid roll-out of 420 [megawatts] of biomass power to help alleviate the severe energy crisis gripping the Philippines. [Global Green’s] 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 whilst providing, clean, stable, grid connected, base-load renewable energy,” Waterfield said.
Green Power Bukidnon Philippines Inc., another Global Green subsidiary, has also signed a letter of intent with the two firms for another 35-megawatt plant in Bukidnon, Mindanao.
The UK-based Global Green’s plan to put up 420 megawatts of power capacity through 12 biomass plants would cost $1 billion over an eight-year period.
These plants will use farm refuse, such as rice and cornhusks bought from farmers, to generate clean and renewable electricity. These then will serve as base-load plants that can run round-the-clock, unlike other weather-dependent renewable energy sources.