Aseagas Corp., a subsidiary of Aboitiz Equity Ventures Inc. (AEV), said it expects to complete the construction of its $50 million (P2.2 billion) biomass power facility in Lian, Batangas by the middle of next year.
Manuel Lozano, chief finance officer of AboitizPower, another subsidiary of AEV, said the biomass plant, which will be the first in the country, is expected to generate 8 megawatts (MW) of renewable energy (RE).
Aseagas had originally planned to construct a liquid biomethane plant that would produce transport fuel from organic waste, with a capacity of around 9,000 metric tons of biomethane per year.
But in the process, Lozano said they were able to study the technology and decided to convert it into biomass plant for power generation.
“Actually we’ve changed the business model. What we’re going to do is, instead of transport fuel, it will generate electricity. If that’s successful, we have more supply,” Lozano told reporters.
During the construction, Lozano said they replaced some of the equipment with generators using methane to run it.
But he said they changed the business model on how to offer the capacity to the grid.
Lozano said the power to be generated by the biomass plant will be sold by Aseagas through the Feed-in-Tariff (FIT) scheme.
“So the grid will buy whatever we produce. I think they see it as a good opportunity. Less market risk because they don’t have to worry about selling it anymore,” he added.
AEV is one of the largest conglomerates in the country. It has investments in power (Aboitiz Power Corp.), banking (Union Bank of the Philippines), food manufacturing (Pilmico Foods Corp.) and property development (Aboitiz Land Inc.)