Friday, January 15, 2010

By J. B. F. Santos

“Basic Energy’s focus in 2010 will still be in biofuels and renewable energy,” the company said in a statement.

De Venecia-led Basic Energy is eyeing to put up a bioethanol plant in a 6,000-hectare land in Gutalac, Zamboanga del Norte. The facility will use cassava as feedstock. The company started developing the area for cassava in 2008 under unit Basic EcoMarket Farms.

“Cassava has an intermediate market and can be a source of revenue while the planned bioethanol plant is still being developed and constructed,” Basic Energy said.

The two other existing bioethanol plants in the country, San Carlos Bionergy, Inc.’s 40-million-liter-per-year facility in Negros Occidental and Leyte Agri Corp.’s 3.6-million-liter-per-year plant, use sugarcane as feedstock.

The company did not give capacity projections and a timetable for construction of the plant.

“Finalization of the plans for the bioethanol plant will depend largely on when a critical hectarage necessary to supply the feedstock requirements of a bioethanol plant is achieved and when the equity and debt funding for the project are set in place,” the company said.

Republic Act No. 9637, the biofuels law, requires all gasoline sold in the Philippines to be blended with 5% ethanol. By 2011, the minimum blend will be increased to 10% Cam Sex.

The firm will also start mapping its geothermal service contract in Batangas early this year.

“We shall be commencing the geophysics and geological studies in our geothermal service contract area in Mabini, Batangas in the first quarter of 2010,” the company said. “Drilling schedule will depend on the results of these studies,” the company added.

Basic Energy is also involved in oil exploration activities through wholly owned subsidiary Southwest Resources, Inc.

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