The P1.673 billion renewable energy (biomass) plant in Quezon of Unisan Biogen Group (UBG) leads the P2.16 billion project approvals by the Board of Investments.

Based on the BoI approvals, UBG will establish the 10-MW biomass power plant in barangay Muliguin, Unisan, Quezon.

The power plant will utilize coconut husks, wood chips and other biomass wastes as fuels.

To ensure adequate supply of these fuel sources, UBG has entered in long-term deals with coconut farmers in Quezon, Batangas, Bicol, and other provinces. At full capacity, the company needs about 90,230 metric tons (MT) of biomass wastes.

Commercial operations are slated to start on January 2013 employing 59 people.

“This alternative source of energy will boost the power capacity of the area and will make power rates more affordable,” said Trade and Industry Secretary and BoI Chairman Gregory L. Domingo.

The firm’s major stockholders are Adelino Garcia (50%), Lydia Reyes (44%) and Jose Antonio Lopez (6%) who are also major executives of the company.

Earlier, company director Lopez was quoted as saying that the P1.2 billion of the P1.7 billion would be financed through borrowing and the remaining cost will be coming from the company’s equity.

According to Lopez, Ecoenerhiya is currently negotiating with Banco De Oro as possible provider of financing for the project, which is expected to be sealed by April this year.

The 10 MW biomass project is a part of the total 24 projects which the company is eyeing. They expect to carry out half of the projects within a five-year time. The company is also open to accepting investors who would like to take part in their projects, said Lopez.

“We are talking with investors, but we are not yet sure whether we will tie up with PNOC-RC. We are looking at all possibilities,” he said.

PNOC-Renewables Corporation (PNOC-RC), is one the companies being eyed to be one of the company’s partner in some of the proposed biomass facilities.