UK, PH firms set for biogas venture

ABOITIZ Equity Ventures and Gazasia Ltd., based in the United Kingdom, are set to roll out within the year the first phase of the planned $150-million investment in biogas facilities that will convert methane from waste materials into fuel.

Through the joint venture firm Aseagas Corp., Gazasia and AEV are planning to break ground for the first biogas facility within the second or third quarter this year, according to Aseagas director Juan Alfonso.

On the sidelines of the UK Renewable Energy Systems and Solutions forum yesterday, Alfonso said that the planned facility, which is expected to cost roughly $30 million, will answer the fuel requirements of 150 vehicles—mostly delivery trucks and heavy buses.

The yearly demand of these vehicles is expected to run up to some 5 million liters, he explained.

Alfonso explained that Aseagas would cater to fleet accounts of about two to three large customers, which he said would be enough to take on the full capacity of the biogas facility.

He further assured interested parties of the sustainability of the project as he noted that the waste to be used for the upcoming biogas plant would come mainly from municipal solid wastes and organic wastes.

In terms of pricing, meanwhile, Aseagas hopes to produce fuel with prices that will be at par with current diesel prices.

“We want to do at least parity.… we will endeavor, if we can, to sell at lower prices,” Alfonso said.

The biogas facility that is set to be constructed within the year is one of the few facilities that may be put up by the joint venture company.

Alfonso, however, declined to cite specific areas or islands that the company is eyeing. He however admitted that Luzon will remain the key market, accounting for 70 percent of the demand.

Earlier, Gazasia and AEV signed a memorandum of agreement for the planned $150-million investment in June last year during President Aquino’s visit to the United Kingdom.

A previous disclosure to the local bourse also affirmed that partnership to build waste-to-fuel plants in the Philippines.

According to the disclosure, the biogas plants will convert organic waste material into sustainable fuel for vehicles in the form of liquid biomethane.

Gazasia will provide technical expertise, specialized equipment and project management for the facilities, while AEV will provide core funding for the project and access to the Philippine market.