Neri will likely walk
BY AMADO MACASAET
Quezon biomass project gets incentives
The Board of Investments (BOI) will grant incentives to the controversial P1.673 billion biomass renewable energy power plant of Unisan Biogen Group (UBG), one of the 87 granted contracts by the government.
The BOI recently approved the application of UBG for its 10 megawatt (MW) biomass power plant in Barangay Muliguin, Unisan, Quezon under Republic Act 9513 otherwise known as the Renewable Act of 2008.
The project will use coconut husks, wood chips and other biomass wastes as fuels for the operation of the plant. To ensure adequate supply of these fuel sources, UBG has entered in long-term deals with coconut farmers in Quezon, Batangas, and other provinces in the Bicol region.
At full capacity, the company needs about 90,230 metric tons (MT) of biomass wastes.
"This alternative source of energy will boost the power capacity of the area and will make power rates more affordable," said Trade Secretary and BOI chairman Gregory L. Domingo.
With a 25-year RE supply contract, UBG will sell its plant-generated electricity to the Quezon 1 Electric Cooperative (QUEZELCO 1) starting at P5.74 per kilowatt-hour on the first year of operation, upon approval from the Energy Regulatory Commission (ERC). Additional income will also be derived from sale of carbon credits.
Commercial operations are slated to start on January 2013 employing 59 people.
The firm listed the following as major stockholders: Adelino Garcia (50 percent), Lydia Reyes (44 percent) and Jose Antonio Lopez (6 percent) who are also major executives of the company.
The project ran into controversy earlier on allegations that it was to acquire behest loans as it is led by the family of Quezon Rep. Danilo Suarez as well as opposition from critics of the project.- Irma Isip
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