THE PHILIPPINES - Eyeing to use of agricultural residues to generate electricity, UK-based Global Green Power Plc. Corp. (GGPC) is looking at investing a total of $200 million for five biomass power projects.

“We will be putting up 17.5-megawatt [MW] biomass power plants that would cost $40 million each in five different areas in the country,” David de Montaigne, GGPC chief executive and founder, said.

The GGPC official said the biomass plants will be constructed in areas where agricultural residues exist, like in Panay, Nueva Ecija, Pangasinan and Samar.

De Montaigne said phase one would entail the construction of five 17.5-MW biomass power plants that deliver clean baseload, decentralized, cost-competitive electricity utilizing European technology.

He added that they are working with the Land Bank of the Philippines and other banks to secure funding for construction. GGPC replaces fossil fuel power-generation facilities with biomass sourced from agricultural waste residues, sustainable forestry and energy crops. 

De Montaigne pointed out that each GGPC power plant will provide more than 900 direct and indirect jobs to local communities.

For Panay, the company is set to sign the electricity sales agreement (ESA) with the local cooperatives for the supply of 35 MW. 

The 25-year ESA is tagged to the consumer price index, with no foreign exchange charges and fuel pass on costs, he added. 

Once the agreement is signed, he added that GGPC will start construction of the facilities, which will take around 18 to 24 months to complete. “We would like to start construction of the Panay biomass plants by February 2009,” he said.

GGPC has tapped the services of European contractor AREVA Bioenergies of France to construct the plants.

“AREVA is building the power plants to European standards and the project will generate significant carbon credits,” Simon MacKinnon, GGPC chairman, said. 

He added that each power plant project is environmentally sound and will serve to mitigate global climate change. 

MacKinnon added that the $200-million initial investment is only the beginning of the company’s long-term plan for the Philippine operations.

Gordon Thomson, GGPC chief financial officer, said the longer-term vision is to infuse about $1 billion into the Philippines for various renewable energy projects.

Thomson said they are not only looking into biomass but also biogas, geothermal, hydro, ocean, solar and wind facilities and that the GGPC team are working on a dedicated fund to facilitate the said projects.

GGPC was formed by Filipino and UK investors with a vision of becoming Asia’s single largest biomass supplier by 2012. The company recently inaugurated its office at The Taipan Place in Ortigas, and also maintains an office in Berkshire in the United Kingdom.


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