Philippine firm wins 1.3 billion dollar deal with UK firm

[czildjianako]

Philippine firm wins 1.3 billion dollar deal with UK firm
AFP
23 May 2007 | 6:00 PM

A state-run Philippine energy firm said Wednesday it has won a 1.3-billion-dollar deal with British firm NRG Chemical Engineering to build biofuel facilities here.

The firm, PNOC-Alternative Fuels Corp (PNOC-AFC) said it would form a new firm with NRG to invest in the sector over a five-year period. The British firm would own 70 percent of the venture, while PNOC-AFC would have 30 percent.

"NRG has been looking for a possible partner in the region and they have decided to invest in the Philippines," PNOC-AFC president and chief executive Peter Abaya told reporters.

The two firms plan to build a 3.5 million metric tonne bio-refinery at a cost of 455 million dollars, and a 600 million dollar plantation for jatropha, a plant material which is used in producing biofuels.

They also plan to build a 300,000 metric tonne bio-ethanol plant at a cost of 200 million dollars.

President Gloria Arroyo signed the Biofuels Act of 2006 early this year, hoping to reduce the country's dependence on imported crude oil in favor of alternative fuels produced locally.

The law mandates the blending of 1 percent bio-diesel in all diesel products starting this month. By 2009, all gasoline products to be sold in the country should have a 5 percent ethanol mix.

jvg/lh

[czildjianako]

Good news...

I wonder if it would be profitable to plant Jathropa (Tuba-tuba). Will small-scale privately owned plantation benefit from this?

What do you think mga sirs?