by Madelaine B. Miraflor, 14 May 2015
from Manila Bulletin
Roxas Holdings, Inc. (RHI) and Global Business Power Corporation (GBPC) have moved closer into building their 40-megawatt co-generation facility in Negros Occidental, tapping a Finland-based company for the plant’s Front-End Engineering Design (FEED).
A disclosure to the Philippine Stock Exchange index (PSEi) showed on Tuesday that RHI, the country’s largest integrated sugar and ethanol business, and GBPC, the power generation arm of GT Capital Holdings, Inc., already awarded the FEED contract for their Negros plant to Pöyry Energy, Inc., a global Finnish consulting and engineering company.
Part of the memorandum of agreement between RHI and GBPC, the FEED contract covers the detailed study of the technical requirements and investment cost of the project, following the feasibility study which was also done by Pöyry Energy.
RHI Chairman Pedro Roxas said over a statement that the awarding of the FEED contract reaffirms the commitment of both parties to provide a stable and alternative option to the growing concern on the country’s power situation.
“The awarding of the FEED contract marks a significant step in the development of our first venture in renewable energy. This validates our stern commitment to pursue new energy sources that would support the growing energy requirements of the country. As we bring in best practices gained from the efficient operations of our power plants in Iloilo, Cebu, Aklan and Mindoro and through Pöyry’s technical expertise, we aim to come up with a design that would optimize the energy efficiency of the 40-MW biomass power plant project,” GBPC’s executive vice president Jaime Azurin also told the local bourse.
It was reported earlier that the construction of the biomass plant, which serves as the pilot project for the joint venture of GBPC and RHI, may start construction within the year as the two companies get closer to finalizing certain details in their agreement.
In December last year, the two firms have agreed to form a joint venture company to build and operate the biomass plant, which is targeted for completion by 2017.
The co-generation plant will cater to the energy requirements of RHI’s sugar mill and at the same time, contribute excess power to the grid.
In the previous year, GBPC also tapped Pöyry for the expansion of its Iloilo coal plant project, with the latter particularly securing the engineering, procurement and construction (EPC) contract for the coal handling system of Panay Energy Development Corp’s (PEDC) 150-megawatt (MW) plant in Iloilo City.
PEDC is a subsidiary of GBPC, a unit of GT Capital Holdings, Inc., the Ty family’s listed holding firm.