$500-M biomass power plant pipeline bared
The ThomasLloyd Cleantech Infrastructure Fund is backing a $500-million pipeline of biomass power plants to add 100 megawatts (MW) of clean power to the Philippine energy sector in the next two to three years.
This was revealed during a forum co-organized by SGV Co. and the Department of Trade and Industry for German business leaders seeking opportunities in the Philippines.
ThomasLloyd Group Plc chair and CEO T.U. Michael Sieg said his group was developing a series of biomass-based power plants together with local partners, following the joint venture with Bronzeoak Philippines Inc. to launch San Carlos BioPower Inc. in Negros Occidental.
Their first facility was an 18-megawatt (MW) biomass plant within the San Carlos Ecozone, San Carlos City, Negros Occidental that uses sugarcane stalks and other agricultural waste as feedstock.
“We are now extending that joint development agreement so San Carlos is now the first of a series of biomass projects in the Philippines which Bronzeoak Philippines and ThomasLloyd will jointly develop together with our partners,” Sieg said.
Sieg said another three plants are in the pipeline: two in Negros Occidental and one in Luzon.
Article continues after this advertisementThe total capacity of the portfolio, which will cost $500 million, will reach 100 MW.
Article continues after this advertisement“We have committed, as ThomasLloyd, $50 million in development financing and construction equity to these projects, which will make Thomaslloyd the biggest foreign investor in biomass plant in the Philippines,” Sieg said.
Additional funding will come from loans, which the partners are working on, he said.
Bronzeoak Asia Pacific chair Jose Maria T. Zabaleta said the pipeline of projects should help diversify and stabilize the Philippines’ power supply situation.
“In general, our preference is if we can work our way through the further pipeline together with the existing equity club,” Sieg said, noting that listed Greenergy Holdings Inc. (formerly MUSX Corp.) is now also a partner.
“There is natural demand for the end product, which is electricity. Electricity demand on a steady base is growing. It’s inelastic. What is specifically interesting to us is the archipelago, it enables decentralized power generation that will allow us to grow. We have a very strong local partner with Bronzeoak Philippines. The Philippines is the most western country in the Asian region and it’s a good starting point to Southeast Asia,” Sieg said.
