German bizmen pouring P2.5B investments

BACOLOD CITY, Philippines — German investors belonging to the Thomas Lloyd Group are pouring about P2.59 billion ($60 million) in investments into the 18-megawatt biomass plant of San Carlos BioPower to be built in the San Carlos City ecozone, according to Negros Occidental Governor Alfredo Marañon Jr.

Germany's honorary consul Dr. Franz Siedenschwarz and at least 18 German investment advisers who are in Negros Occidental to explore areas of investment, especially on renewable energy production, met with top officials of the Negros Occidental LGU to discuss the matter.

Jose Ma. Zabaleta, chairman of BronzeOak Philippines and San Carlos BioPower, said, "The Germans were looking for renewable investments in Asia and we convinced them to focus on the Philippines and come to Negros Occidental that offers the future for biomass energy."

Bronzeoak Philippines is the proponent of San Carlos BioPower that aims to provide sustainable power to the local grid from renewable sources of energy on completion of its San Carlos plant in late 2013.

"They are interested in power from biomass and other renewable energies in Negros," Zabaleta said, adding that the German investors were also looking for two other areas in the province where they can build similar plants.

Two other 18-megawatt biomass plants will possibly be in the cities of Cadiz and Bago provided there is available agricultural residue biomass. Each plant will need about 160,000 tons of residue biomass, he said.

Thomas Lloyd Group chairman and chief executive officer T.U. Michael Sieg said they will be investing into the San Carlos BioPower and are looking forward to investing in other projects in Negros Occidental.

Before their arrival in Negros, the Germans met with leaders of the European Chamber of Commerce and Industry, Department of Energy, and the Department of Agriculture in Manila, Zabaleta added.

At a dinner earlier this week, Marañon informed the German investors that Negros Occidental is faced with a power shortage that needs to be addressed sooner.

Energy Secretary Jose Rene Almendras had earlier warned that Negros Occidental could face a serious power shortage by 2014 or 2015 if it does not start building its own power plant starting this year. The Department of Energy projected that Negros will have a power deficit of 93 megawatts by 2015.

Marañon said the German investments will help the province's economy. "We will be producing renewable, sustainable and clean energy, and we will also make money from agricultural wastes that we have just been burning all these years," he added. - THE FREEMAN