Japan’s Toyo Eng‘g eyes P60-B coco proj in RP

Japanese firm Toyo Engineering Corp. (TEC) has expressed interest in putting up an integrated coco methyl-ester (CME) manufacturing plant in Region I. The project is estimated to cost anywhere from P60 billion to P600 billion over a period of 10 years.

"TEC came to us last week and informed us of their plans to scout for a suitable area for a CME plant as well as areas with which to plant high-yielding coconuts that will be used as raw material for the plant," said Oscar Garin, administrator of the Philippine Coconut Authority (PCA).

The Japanese company which is principally involved in plant engineering services for the petroleum, natural gas, fossil fuel power, petrochemical, oil refinery plants and energy-related industries, is now conducting a feasibility study to determine the cost of implementing its proposed long-term program.

PCA deputy administrator Carlos B. Carpio said TEC’s grand plan is to establish an integrated CME facility, the entire output of which will entirely be shipped to Japan and supply its growing demand for bio-fuels, both for fuel-dependent industries and manufacturing concerns, and also for its automotive industry which is now coming up with hybrid vehicles to reduce its dependence on soaring crude prices.

Japan is one of four Asian countries currently planning to mandate the blending of CME with petro diesel to cut their dependence on expensive oil. With its 40-billion liter diesel requirement, Japan is planning for a CME blend of five percent. Malaysia meanwhile, recently passed a law mandating a five-percent biodiesel blend by 2007.

Besides its proven efficiency as a petro-diesel additive, CME use is expected to result in a mileage increase of 10 percent without any need to alter vehicle engines.

Carpio said that TEC is initially planning to establish 600,000 hectares of coconut lands, either in new areas in Region I such as Pangasinan, Ilocos Sur, Ilocos Norte and La Union. An alternative is to utilize the wide coastal areas of these provinces. The CME plant will have to be in La Union, which has an international port.

Opening up new areas for coconut farms would mean a bigger investment of about P1 million per hectare, while using coastal areas will require only P100,000 per hectare. This would require anywhere from P60 billion to P600 billion.