IFC invests P7.5B in 3 biomass projects in PH
World Bank-led International Finance Corp. is investing $161 million or about P7.5 billion in three biomass power projects in Negros Occidental that will generate 70 megawatts of renewable energy.
In a statement Friday, IFC said the power plants currently being built in the municipalities of La Carlota, Manapla and San Carlos also secured investment from the IFC-Canada Climate Change Program of the Canadian government and the Clean Technology Fund, a financing instrument under the Climate Investment Funds that “provides developing countries with incentives to scale up the demonstration, deployment, and transfer of technologies that have high potential for long-term greenhouse gas emissions savings.”
“In addition to loans from Canada and the Clean Technology Fund, IFC is also mobilizing funding from the managed co-lending portfolio program, a new syndication platform that offers institutional investors the ability to passively participate in IFC’s future senior loan portfolio,” it added.
These projects’ proponents were Bronzeoak Philippines and ThomasLloyd Group Ltd.
The IFC said the three power plants would convert waste from sugarcane into electricity using circulating fluidized bed boiler technology, which had low carbon emissions.
“Before it was identified as feedstock for biomass power plants, sugarcane waste was burned in the fields, a practice that contributed to air pollution,” the IFC noted.
According to the IFC, the three power plants are seen qualifying for the Energy Regulatory Commission’s biomass feed-in-tariff.
“Energy is central to the country’s development, and the Philippines needs to further diversify and secure its energy sources. Converting agricultural waste to biomass power is a sustainable way of creating economic value while caring for the environment,” said IFC country manager Yuan Xu.
“We are pleased to support innovative projects abroad that help reduce global greenhouse gases. Through our partnership with the IFC, the government of Canada will deliver funds that will enable the growth of renewable energy while supporting the creation of green jobs,” Canadian Minister of Environment and Climate Change Catherine McKenna was quoted by the IFC as saying.
“We are happy to receive this support from IFC and the development partners. This funding will help utilize agricultural waste to generate reliable base load power, providing additional income to farmers, reducing fertilizer costs, and helping contribute to a healthful ecology,” Bronzeoak Philippines chief executive Jose Maria Zabaleta said.
“ThomasLloyd is delighted that IFC has chosen to participate in these investments. With its use of local sugar cane waste, this project is an exciting development for all the stakeholders and especially for the local community,” according to ThomasLloyd Group executive director Tony Coveney. Ben O. de Vera
