VMC cleared to operate 40-MW biomass facility

MANILA, Philippines — Listed sugar miller Victorias Milling Co. Inc. (VMC) received approval from the Energy Regulatory Commission (ERC) to operate its 40-megawatt (MW) biomass co-generation power plant in Negros Occidental.

In a disclosure to the Philippine Stock Exchange, VMC said it received a letter from the ERC dated Mar. 10, granting the company a provisional authority to operate its biomass co-generation power plant with feed-in-tariff eligible capacity of 21.450-MW and its 2 x 2-MW black start diesel engine generating units.

It said the provisional authority to operate covers a period of one year from Mar.10, 2022 to Mar. 9, 2023.

In July last year, VMC also received approval from the ERC to develop and own transmission point to point (P2P) facilities for its own use, and to link its power plant to the Visayas grid.

VMC’s transmission facilities include a 50-megavolt ampere substation, a 69 (kilovolt) kV switching station, and a 2.4 kilometer 69-kV single circuit transmission line.

The company’s power generation business registered a net income of P1.47 million in the first quarter of the current crop year. This is lower than the P2.128 million registered in the year before.

VMC is primarily engaged in integrated raw and refined sugar manufacturing with facilities in Negros Occidental.

It also has businesses in food processing, leisure and real estate.

VMC reported a 54.6 percent jump in its net income in the three months of its current crop year to P141.3 million, driven by the high demand for ethanol and refined sugar.

Gross profit jumped to P243.4 million.

“The overall gross profit rate of the group slightly increased from 11 percent to 12 percent or by P31 million due to favorable sugar prices compared to last year despite the increase in cane hauling costs and planter incentives,” the company said.