MANILA – Roxas Holdings Inc. (RHI) and Global Business Power Corporation (GBPC) have signed an agreement for the development of a 40-megawatt cogeneration facility in La Carlota City, Negros Occidental.
The two firms have agreed to establish a joint venture company to operate the biomass plant, which will be located within the premises of RHI’s Central Azucarera de la Carlota Inc. and is targeted for completion by 2017.
RHI chairman Pedro Roxas said the cogeneration project will help address the country’s power situation and expects to eventually contribute excess power to the national grid.
“The cogeneration project will not only help stabilize the power supply in our Negros Occidental plant but will also address the growing concern on energy supply,” Roxas said.
RHI president and chief executive Renato Valencia, meanwhile, said the project will allow RHI to align its operations to global standards.
“With the ASEAN Free Trade Agreement in place by 2015, the project will enable us to minimize our production cost and optimize our efficiency to stay competitive with our ASEAN neighbors,” he said.
GBPC executive vice president Jaime Azurin said the company’s first venture in renewable energy is a welcome addition to its current portfolio.
“This joint venture is an integration of GBPC and RHI’s complementary businesses to enhance growth opportunities in our respective industries. We are constantly exploring new energy sources as we remain committed in providing adequate, reliable and cost-efficient power supply to support the development of existing and emerging markets in the country,” said Azurin.
GBPC, the power generation component company of GT Capital Holdings Inc., has coal and diesel-fired power generation facilities that are capable of supplying base, intermediate, peak load and ancillary support.