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ITOCHU and JGC Launch Large-scale Bio-ethanol Production and Power Plant Businesses in the Philippines

ITOCHU Corporation and JGC Corporation have agreed to participate in large-scale bio-ethanol production and power supply businesses in the Philippines together with other local partners.

The newly formed joint venture, Green FUture Innovations, Inc. (“GFII”), will become a new operating company for the business. GFII will produce and sell ethanol produced from sugarcane feedstock (54,000 kl/year (14.3 million gallons US)), and also sell electricity generated by a power plant (maximum of 19 MW) fueled by sugarcane residuals (bagasse).

The project will create the country’s largest ethanol production facility. Meanwhile, the government intends to enact a new law during 2010 concerned with renewable energy–fueled power generation. Under the law, an incentive program will be created which provides favorable treatment for the supply of electricity generated by renewable energy resources. As bagasse-fueled electricity production is regarded as renewable energy, a power generation plant will be built in the ethanol production plant complex and excess electricity will be sold to outside users.

The business location is in Province of Isabela, about 400 km north from Metro Manila. Start of ethanol production and electricity supply is slated for February 2012.

The Philippine Bio-fuel Act, enacted in February 2009, requires that gasoline produced for automobile fuel contain a minimum 5% ethanol by volume, today, and 10% starting in 2011. The law mandates that locally-produced bio-ethanol be favored over imported bio-ethanol. However, the locally-produced volume falls far short of demand.

ITOCHU and JGC began preparing a basic scheme for a bio-ethanol business in the country a few years ago. Studies were conducted on the details of the business, including securing agricultural fields for growing sugarcane (area: 11,000 hectares) with a plan for harvesting, constructing ethanol production plant facilities, financing, and finding buyers. The final decision to invest in the business was made with the launch of GFII.

Comments

Henry Gibson

Biofuels wiped out most of the forests during the beginning of the industrial revolution in the countries involved, and now these same countries are able to wipe out the forests of all countries of the world. There is no biofuel that can be considered carbon neutral because fossil fuels are used in producing or transporting such fuels.

The laws promoting biofuels are promoting fraud. Even if corn ethanol in the US produced twice as much energy as the fossil energy put into it, it is likely that growing large permanent trees on the same area and using more fossil fuels would result in a net reduction of the CO2 put into the air. This is particularly true of areas with a large amount of rainfall.

Ethanol is a human food and the sugar cane that it came from is also a better human food. Even the non sugar parts of the cane can be made into a food.

There is almost no place in the world where sugar cane is grown that natural forests and grass lands were not destroyed to grow the cane.

The US is destroying the natural ecology of the world by refusing to use its own fuel supplies and letting the rest of the world use its own as well. There is no reason for the US to import one tonne of fossil fuel for the next billion or more years. ..HG..

HarveyD

HG:....Bio-fuel + farming + paper industries + wood products + overspread cities + highways + sugar cane + fires + insects + various pollution + diseases + volcanos + overpopulation etc all helped to wipe out forest in many countries.

Unwanted (often harmful) forest, farming, industrial and domestic wastes could be converted into essential energy or liquid fuels without reducing land available for food production.

Most forests would grow back (even better) when properly managed. Ex: Fast growing bamboo can produce up to 10 times more wood flooring per hectare than many other species. Many European countries still have beautiful forests while producing enough food for their large population. Eating more chicken and less beef would liberate millions of acres because beef require 11 calories to create one while chicken do it with only 2.3 and even less with enough hormones.

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