BOI approves P903.3-M renewable energy project
July 1, 2010 5:16 am
MANILA, June 30 — The Board of Investments (BOI) recently approved the application of Lucky PPH International Inc. (LPPHII) as a new renewable energy Developer under RA 9513, otherwise known as the Renewable Energy Act of 2008.
The P903.3. million project involves the construction and operation of a 7.2 megawatt (MW) Biomass Power Plant in Alicia, Isabela. This will generate electricity through gasification of biomass materials such as rice stems and rice husks, primarily, corn stalks, and other agricultural wastes. It will supply the electricity requirements of 13 municipalities in Isabela served by the Isabela 1 Electric Cooperative (ISELCO 1).
Once operational, this plant will ensure that a considerable area of the province will have stable electricity by then, Trade Secretary and BOI Chair Jesli A. Lapus said.
The facility will require around 28,800 MT of biomass per year to operate.
The company has entered into an agreement with various rice millers in the area for rice husk to ensure reliable and steady supply of biomass for the operation of the plant.
About 5 MW of electricity generated by the plant has an assured market through a 25-year Power Supply Agreement (PSA) with the Isabela 1 Electric Cooperative, Inc. (ISELCO 1). In the agreement, LPPHII will supply ISELCO 1 with reasonable electricity prices upon the approval of the Energy Regulatory Commission (ERC).
The remaining electricity produced will be supplied to Lucky Brothers Rice Mill (firms sister company) to provide the power requirement for its milling operation. Operations are slated to go full blast on January 2012 generating employment for 38 people.
The companys major stockholders are Lucky Pua (45%), Jennifer and Raymond Dizon (25%) along with their Chinese partners Riqiang and Wenquiang Pan who hold the remaining 30% stake.(PNA)