Aboitiz Equity and Gazasia to develop biomass ventures

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WEDNESDAY, 06 JUNE 2012 18:14 PAUL ANTHONY A. ISLA / REPORTER

LISTED Aboitiz Equity Ventures (AEV) said on Wednesday it signed a memorandum of agreement (MOA) with Gazasia Ltd.

In a disclosure to the Philippine Stock Exchange, AEV said the deal formalizes the companies’ intention to jointly develop, construct and operate plants that will convert organic waste material.

The plants are, according to AEV, targeted to convert a carbon-neutral, sustainable and renewable fuel for vehicles in the form of liquid biomethane.

Under the MOA, AEV said Gazasia will provide technical expertise, specialized equipment and project management, while AEV will provide core funding for the project and access to regional markets in the Philippines.

AEV said the specific terms and conditions of the project will be finalized in a definitive agreement to be agreed upon by the parties. Gazasia Ltd. is a UK-based company specializing in providing waste-to-fuel solutions.

Meanwhile, SN AboitizPower-Magat Inc. (SNAP-Magat), the joint venture between SN Power of Norway and Aboitiz Power Corp., said it also entered into an agreement with the National Irrigation Administration for the optimization of the Maris reservoir.

SNAP said the existing Maris reservoir, which is part of the Magat River Integrated Irrigation System (MRIIS), is designed and used to re-regulate peaking generation releases from SNAP’s Magat hydroelectric power plant into sustained releases for irrigation in the downstream irrigation canals.

SNAP said while the current storage capacity, which provides 5.79 million cubic meters (MCM), is sufficient to regulate peaking releases on a daily basis, generation and/or spilling is required on weekends to provide sufficient water for irrigation.

SNAP said the Magat Maris Reservoir Optimization Project would increase the storage to 13.65 MCM and undertake a number of repairs and upgrades to improve the safety of the Maris Dam.

“This is the beginning of a new phase in our partnership with NIA as we explore more opportunities for growth. We are pleased to have NIA as our partner as we develop this, and other projects, over the next few years.” Emmanuel Rubio, SNAP Ppresident and Chief Executive, said.

Under the terms of the agreement, SNAP-Magat will underwrite the cost of making specified repairs and upgrades to Maris Dam and Reservoir, which is expected to contribute to increased operational efficiency of the 360-megawatt (MW) Magat hydroelectric power plant owned and operated by SNAP-Magat.

“The Maris Optimization Project exemplifies the viable partnership of NIA and SNAP in spearheading development in the countryside, as the project will cater to the needs and welfare of the people within the reach of power and irrigation water supply,” Antonio Nangel, NIA Administrator, said.

SNAP will also conduct a study to identify how the operation of MRIIS can be improved to increase the agricultural production of the irrigation system.    source