MANILA, Dec 11 (PNA) — Roxas Holdings Inc (RHI) and Global Business Power Corporation (GBPC) has inked a Memorandum of Understanding (MOU) for the Front-End Engineering Design (FEED) study of a 40 Megawatt (MW) biomass power plant in Negros Occidental.
“Roxas Holdings, Inc. (RHI), the largest integrated sugar business in the country and Global Business Power Corporation (GBPC), one of the leading power producers in the Visayas and the power generation component company of GT Capital Holdings, Inc., recently signed a memorandum of understanding to undertake a Front-End Engineering Design (FEED) study and other pre-development activities for a 40-MW cogeneration facility in La Carlota City, Negros Occidental,” GBPC said in a statement Thursday.
The FEED comes after the conceptual design or feasibility study, focusing on the technical requirements of a project. However, the Energy Department has to study a project’s FEED and award it, before it can start construction.
The company noted the memorandum lists the respective duties and responsibilites for the financing, design, construction, ownership and operation of the 40 MW plant. The plant will be located in RHI’s Central Azucarera de la Carlota, Inc and is projected to be completed by 2017.
RHI and GPHC will establish a joint-venture company to operate the plant.
On the other hand, RHI President and Chief Executive Officer (CEO) Renato Valencia stressed the project will allow RHI to align its operations with global standards in preparation for ASEAN 2015.
“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 neighbours,” Mr. Valencia said.
Further, GBPC Executive Vice President Jaime Azurin welcomes its entrance towards renewable energy (RE) projects, since it has previously invested in coal and diesel-fired power generation facilities.
“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 Mr. Azurin.
GBPC has coal and diesel-fired power generation facilities, capable of supplying base, intermediate, peak load and ancillary support. It also offers flexible energy solutions.
Meanwhile, Roxas Holdings Inc is a sugar milling company, which started in 1927 in Nasugbu, Batangas. It was previously known as Central Azucarera Don Pedro. (PNA)