Philippines: BOI approves P1.5-B wood and grass pellets project

Philippines: BOI approves P1.5-B wood and grass pellets project

THE Board of Investments (BOI) has approved the application for registration
of Pelletasia Victorias Corp. as a new export producer of wood and grass
pellets under a non-pioneer status.

"The potential benefits of wood, especially napier grass, are not yet fully
explored to substantially become alternative fuels and contribute to energy
independence. These resources can be grown in abundance as demand of energy
pellets is seen to continuously grow," said Trade Undersecretary and BOI
managing head Ceferino Rodolfo on Wednesday.

With an annual capacity of 113,568 tons, the P1.48-billion investment
project is expected to generate at least 576 new jobs in the next six years.

Pelletasia has already planted napier grass in its plantation located in
Sagay City, Negros Occidental and is set to harvest over 70 hectares of the
total 300 hectares of the plantation by December 2016, commencing the
company's commercial operations.

"Together with other potential sources of biomass fuels like bamboo and
by-products of agricultural crops, these resources are renewable, which
ensures their continued supply," Rodolfo said.

"In essence, bioenergy initiative is not only for energy. It supports
agricultural development by adding value to resources which generally are
left in the farm or go into waste," he said, adding that the project is a
good example of how to encourage inclusive growth in rural areas while
supporting agricultural development.

Pelletasia plans to export majority of its products to Korea and Japan
although it is also looking at eventually supplying the local market,
particularly sugar millers in the country who are set to diversify into
bio-ethanol production from molasses and sugar.

The company sees a huge potential export market for biomass pellets as
international demand for the commodity is projected to increase from 19
million tons per annum in 2013 to about 50 to 80 million tons by 2020.

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com