Abengoa Bioenergy plans to invest $250 million to develop 50,000 hectares of cassava plantation in the Philippines for the production of feedstock for ethanol production.
Abengoa Bioenergy expects the plantation to produce one million to 1.2 million tons of feedstock, and generate about 150 to 200 million liters (40 to 53 million gallons US) of bioethanol annually.
Under a Memorandum of Understanding (MOU) signed with the Philippine Agricultural Development and Commercial Corporation (PADCC), Abengoa Bioenergy will assist in identifying varieties of cassava for trial cultivation. The agreement is valid for one year.
In addition to providing the design engineering and the machinery required for the development of cassava plantations, Abengoa will also study the possibility of establishing bioethanol production plants in the Philippines.
Earlier, Bionor Transformacio S.A., a European biodiesel firm based in Bilbao, also disclosed plans to invest $200 million in the Philippines to develop at least 100,000 hectares of jatropha plantations to be used as feedstock for biofuel facilities in the country.