Pepsi to put up 2.2-MW biomass power plant

business mirror
THURSDAY, 20 JANUARY 2011 19:52 PAUL ANTHONY A. ISLA / REPORTER


PEPSI Cola Products Philippines Inc. (PCPPI), the local arm of US-based beverage giant, is putting up a 2.2-megawatt (MW) biomass power plant to cater its power requirements for its manufacturing plant in Cagayan de Oro.

“The power plant, which is being built by PowerSourceEnergy Services Inc. [Pesi], is targeted to be completed and operational by June this year,” Gabby Gabinete, PCPPI commercial director, told the BusinessMirror.

In a phone interview, Gabinete said PowerSource is building the power plant at a cost of P200 million and will use coconut husks, coconut shells, and other coconut residues and wood chips as feedstock.

The use of these materials, said Gabinete, will result in additional income and livelihood support to farmers in neighboring districts.

There are eight more renewable energy projects awaiting approval by PCPPI management within the year.

Gabinete said civil works is ongoing and equipment have been ordered. The company expects around 20-percent to 50-percent savings from the biomass power plant.

PCPPI is also putting up a 1-MW biomass power plant in La Union in partnership with Solutions Using Renewable Energy Inc. (Sure).

In a separate statement, Gabinete said they have already signed the contract with Pesi for the development and operation of a biomass-fired cogeneration facility at the latter’s beverage manufacturing plant in Cagayan de Oro City.

Under the contract, biomass power plant will be financed entirely by PowerSource which, in turn, will supply power and steam to the Pepsi Cola plant over the 15-year contract period.

Gabinete said PCPPI’s biomass-based projects are expected to help spur the growth of environmental entrepreneurship. “As the demand for biomass materials grows significantly, farmers and environmental advocates will identify new opportunities to convert agricultural wastes to additional income,” he added.

Pesi is a subsidiary of the PowerSource Group Llc., a Delaware-incorporated company, with ongoing cogeneration projects in Southeast Asia and the Western Pacific.

Frederick LaCroix, Pesi founder and chief executive, said PowerSource specializes in developing, building and operating cogeneration facilities deploying hybrid clean technologies to reduce the carbon footprint and energy expenses of large corporate customers. 

LaCroix said the contract with PCPPI is a major step in PowerSource’s development, considering Pepsi’s high profile and strong advocacy of the use of renewable-energy sources in its operations. PowerSource is able to provide long-term project financing to clients such as Pepsi through the financial backing of Credit Suisse.

PCPPI has embarked on a renewable energy program, called the Project Power Play, in a concerted effort to reduce significantly its operating expenses to address power shortages and increasing fuel prices and to adopt environmentally friendly technologies.

PCPPI is a leading beverage manufacturer with 11 manufacturing plants that produces Pepsi, Gatorade, Mirinda, Mug, Lipton, Tropicana, Mug Root Bear, Sting and Propel.