Filinvest, a Philippine Corporation primarily known for its real estate development projects, has made a right hand turn by taking a stab at the emerging biofuel and alternative energy market by purchasing a Mindanao Based Sugar Cane refinery via its holding company, Filinvest Development Corp (FDC).
Filinvest now proudly owns Pacific Sugar Holdings Corp (PSHC) and its two milling facilities: Cotabato Sugar Central Co. Inc. and Davao Sugar Central Co. This was acquired via a share swap agreement between FDC and PSHC’s previous owners, ALG Holdings Corp. ALG Holdings Corp will receive 1.55 billion worth of FDC shares.
According to FDC president Josephine Gotianun Yap:
The swap and the infusion of the sugar business into FDC, will place the company in a position to capitalize on the productive sugar industry in an area with vast expansion potential and the opportunity to venture into allied businesses such as alternative fuel production and power co-generation
Great play by the Filinvest Group to notice the potential income in the emerging biofuel industry. Not to mention that they chose a very good location to invest in biofuels, which is the island of Mindanao in the Philippines. The southernmost island of the Philippines is known for having very good weather, ideal for agriculture. Add also the fact that the 20+ average weather disturbances that visit the Philippines never pass by Mindanao making the island virtually typhoon free. This logically will guarantee a stable supply of sugar feedstock year around.
Another part of the news I’m very happy about is the cogeneration facility that they are thinking of putting up. This will bode well for the grid in Mindanao. Mindanao gets 60% of its electricity from Hydro-Electric Dams, whenever that is unavailable (due to lack of rains) they have to rely on diesel generators which leads to the extreme yo-yoing of electricity rates in the island. At least the addition of another renewable source of energy (be it just of small value and powered by bagasse) would help to alleviate the price of electricity whenever the water source is low.
Hat tip to Filinvest!
Article here
Category: Energy News, Bioethanol
