South Bukidnon Bioenergy Inc. will invest P4.08 billion for the construction of an integrated production facility that will produce ethanol from sugar cane.
The investment has qualified for fiscal and nonfiscal incentives from the Board of Investments (BOI) as it falls under the Investments Priorities Plan (IPP) of the government.
The production facility will be made up of a sugar cane mill for ethanol production.
South Bukidnon Bioenergy Inc. is 50.22 percent owned by Bronzeoak Philippines.
Aside from South Bukidnon Bioenergy Inc., there are eight more firms producing bioethanol who are asking for tax perks from the BOI. Three firms are the First Pampanga Biofuels Corp., Zambo Norte Bioenergy Corp., Renewable Alternative Fuel Inc., Kanlaon Alcogreen, Negros Green Resources, Pampanga Industrial Park, Hope 8 Manufacturing and Trading Corp., Eastern Renewables Fuels Corp., and Petrolift Holdings Inc.
The entry of these companies is expected to further spur the development of the biofuels industry which already has P12 billion in potential investments from six bioethanol projects.
Of the said projects, the facilities of San Carlos Bioenergy in Negros Occidental are under construction and will be operational in the fourth quarter of 2008. The other companies that earlier were granted BOI endorsements were JG Summit Holdings, Biofuels 88 Corp., Leyte Agri Corp., and South Bukidnon Bioenergy Inc.