Global Power eyes renewable energy business

MANILA, Philippines - Global Business Power, Corp. (GBPC), the power generation arm of tycoon George Ty, will be venturing into renewable energy, particularly in the biomass business, a ranking official said.

“We will be going into biomass,” said Global executive vice president Jaime Azurin.

He said Global is now doing a feasibility study to determine the capacity of the biomass power plant, which will likely be in the range of 40 to 50 megawatts.

“We have hired foreign consultants. A study is already underway,” he said.

The project, to be put up in Negros Occidental, will be in partnership with sugar producer Roxas Holdings Inc. (RHI). Under the plan, Global’s power plant will use bagasse from RHI’s sugar plants.

A biomass power plant produces energy using plant-based materials.

Azurin said that RHI is embarking on the joint venture project it seeks to lower its cost of production including electricity.

“What’s happening in the sugar industry is that come 2015, you will have ASEAN (Association of Southeast Asian Nations) free trade. The production cost of our Asean neighbors is lower than ours. Because of free trade they (local sugar industry) will not be as completive so we are tying up with them. They will have to reduce their cost and look into the sustainability of fuel supply,” Azurin said.

He expects the final feasibility study to be completed in the third quarter of the year.

After this, Azurin said the company is also considering other renewable energy projects.

“We have always been very sensitive to health concerns and we make sure that all concerns are properly addressed,” he said, adding that the company ventured into the widely-criticized coal technology because it was the necessary technology needed at the time that it built its plants.

Last week, GBPC’s wholly-owned subsidiary Panay Energy Development Corp. broke ground for its 150-megawatt coal-fired power plant expansion project.

In Mindanao, the company plans to develop a 164-MW plant in Mindanao with Meralco Power Gen, targeted for completion in the fourth quarter of 2017.

Meralco Power Gen is the power generation arm of Manila Electric Co. (Meralco), the country’s biggest power distributor, which is chaired by tycoon Manuel V. Pangilinan.

“The target is to reach 1,000 MW installed capacity by 2018,” Azurin said.

GBC chairman Francisco Sebastian said the company is spending P15.6 billion for this project.

The company expanded the plant following a resurgence in business developments in Iloilo City and around Panay island.

The project is targeted for completion in July 2016, with construction slated to start in July.

It intends to support the increasing economic activity in the Panay island, as well as the imminent power supply shortfall in the Visayas grid by 2015, the company said.