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MANILA (AFP) - A state-run Philippine energy firm said Wednesday it has won a $1.3-billion deal with British firm NRG Chemical Engineering to build biofuel facilities here.

The firm, PNOC-Alternative Fuels Corp (PNOC-AFC) said it would form a new firm with NRG to invest in the sector over a five-year period. The British firm would own 70 percent of the venture, while PNOC-AFC would have 30 percent.

"NRG has been looking for a possible partner in the region and they have decided to invest in the Philippines," PNOC-AFC president and chief executive Peter Abaya told reporters.

The two firms plan to build a 3.5 million metric tonne bio-refinery at a cost of $455 million, and a $600 million plantation for jatropha, a plant material which is used in producing biofuels.

They also plan to build a 300,000 metric tonne bio-ethanol plant at a cost of $200 million.