San Carlos Bio-Energy Plant, the first ethanol distillery and power cogeneration plant in the Philippines was supported by China Bank together with other government and private institutions. In solid support to the country’s National Bio-ethanol Program, these groups extended a loan to fund the construction of the San Carlos Bio-Energy Plant.
Shown in above photo are the executives of San Carlos Bio-Energy Inc. (SCBI), China Bank and the representatives of the other industry participants.
The Philippine Energy Regulatory Commission (ERC) has granted San Carlos Bioenergy Inc. a certificate of compliance (COC) for its new power plant facilities. A COC is issued to a power generation company found compliant to technical, financial and environmental standards that are specified in the ERC guidelines. The issuance of which paves the way for the start of a company’s operations using bio-gas energy as a renewable resource for electricity power generation.
SCBI is a company incorporated in May 2005 to construct, own and operate an integrated ethanol distillery and power cogeneration plant located in the San Carlos Agro-Industrial Economic Zone on the eastern coast of Negros Occidental - the first in the Philippines and the Southeast Asian region. The plant has the capacity to mill 1,500 tons of sugarcane to produce 30 million liters of ethanol annually and approximately 8.3 megawatts (MW) of renewable power.
SCBI's developer, Bronzeoak Philippines, provided unique and valuable expertise in biomass power plant engineering while its principal sponsor, Zabaleta and Company, provided sugar-based agricultural experience. Equity capital was raised both domestically through San Julio Realty Inc., Valmayor Ventures Inc., National Development Company, the Majent Group, as well as internationally through FE Clean Energy of New York.
This strategic partnership brings forth a purpose-built facility using new and state of the art equipment, fully integrated and designed to ensure optimum energy efficiency. It includes a cane mill, distillery, cogeneration plant, carbon dioxide recovery plant, anaerobic digestion plant, and fuel ethanol storage and loading facilities.
The distillery will process a feedstock of mixed juice from sugar cane crushed on-site and the cogeneration plant will utilize the residual sugar cane pulp known as bagasse as its primary fuel. The methane produced during anaerobic digestion will be used as supplemental fuel for the boiler. By-products include food grade carbon dioxide which is captured for sale as well as fertilizer produced from the liquid effluent and solid waste, which will be recycled for the use of cane farmers supplying the plant.
SCBI’s bio-fuel generator units have a combined 8.3 megawatt (MW) installed capacity, while its two-black start diesel engine generator sets have installed capacities of 1.6 megawatt (MW). SCBI has a pending application for a power supply agreement with the VMC Rural Electric Services Cooperatives, a power distributor in the Visayas. SBCI is a welcome addition to the list of power generators that use clean and green energy. Power generators are vital components of the electric power industry.
SCBI announced in mid-March 2009 that locally produced ethanol could be rolled out in Luzon and the Visayas within the next coming weeks, in time for the government’s 2009 mandate of a 5% ethanol-blend in gasoline as provided by the Biofuels Law of 2006. SCBI said it delivered the first shipment of 1.6 million liters to Petron on March 16, 2009.
The project will displace approximately 15 percent of the country’s imported petroleum, based on the 5-percent mandate to be implemented from 2009 to 2011. The construction of the facility started in the last quarter of 2006, prior to the passage of the Law.
With only less than a fifth of the ethanol requirements to be sourced locally at the start of the mandate, oil companies may import from foreign suppliers at least until 2011, the Department of Energy (DOE) said. “As estimated, the country would need at least 200 million liters of ethanol for the year,” DOE estimated, which admitted that, “unfortunately, the country’s current production capacity is only 39 million liters.”
“The balance between the requirements and what the country can only produce would have to be imported elsewhere. DOE said importing some of the ethanol requirements is allowed until 2011, since the ethanol plants have yet to be fully constructed. “So, come 2011, importing ethanol is no longer possible,” DOE added.
Acknowledgement: San Carlos Bioenergy, China Bank, Philippine Daily Inquirer, Business Mirror
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