Basic Energy Corp announced that they have set up a joint venture scheme with cassava producer Ecomarketfarms in Zamboanga. Basic Energy will provide the capital while Ecomarketfarms will provide the business and management plan for the project.
Under the JV, Basic Energy will purchase Ecomarketfarms Cassava farm for P12.5 million, payable through shares and cash.
It’s a good move really, considering that Basic Energy is not really into farming they will need the expertise of Ecomarketfarms in dealing with running the agricultural side of the biofuel industry.
Considering that there is an Comprehensive Agrarian reform law in the Philippines which prevents entities from owning more than 5 ha. of land, land lease is the way to go. Which means you will need people skilled in coordinating that much leased land which are most likely fractured and in wide areas.
In the meantime while waiting for their distillery to go up, cassava produced by the farm will still go the natural route of being sold to starch or feed manufacturers, instead of being directed to ethanol production.
[source]
Category: Bioethanol, Automotive
