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Philippine National Oil Co.-Alternative Fuels Corp. (PNOC-AFC)
has signed a deal with Korea-based ECO Solutions Co., Ltd., for the
establishment of jatropha plantations and oil mills for biodiesel
production.
Under a memorandum of agreement,
PNOC-AFC and ECO Solutions will form a joint venture corporation
that will build and operate oil mills that will produce oil from the
jatropha curcas plant, a proven alternative fuel source.
Both parties, however, have yet
to finalize their production time frame, as they are looking at
establishing 100,000 hectares of the plant. The Philippine company
has been tasked to secure the land.
The proposed joint venture
corporation shall initially supply Global Biodiesel Sdn. Bhd, a
subsidiary of ECO Solutions, under a proposed 10-year contract at a
price and volume to be agreed upon by the parties. The jatropha oil
will be supplied for the purposes of producing biodiesel.
The project is also expected to
help spur the development of biofuel using jatropha curcas as
feedstock for the local market, which is seen to grow after the
passage of the Biofuels Act. The law mandates a minimum blend of 1
percent of locally sourced biodiesel in all diesel engine fuels on
the first year, and higher proportions in succeeding years.
PNOC-AFC is a wholly owned
subsidiary of state-owned PNOC. The company is engaged in the
development of alternative fuel sources that support environmental
sustainability and energy consumption efficiency.
ECO Solutions focuses on
environmental engineering, construction and bioenergy, through
jatropha-related products, among others.
--Euan Paulo C. Añonuevo
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