Manila Times.net
PEPSI-COLA Products Philippines Inc. expects to complete two biomass power plants this year in its bid to reduce costs.
Rendentor Gabinete, Pepsi-Cola commercial director, said that civil works in the beverage firm's biomass projects in La Union province and Cagayan de Oro City have already begun.
"Both [project developers] are saying that by June, they are already operational," he said.
Biomass plants are power-generating facilities that use agricultural feedstock as fuel. This allows them to run as base-load plants that can operate round-the-clock.
Japanese-backed Solutions Using Renewable Energy Inc. (SURE) and US-based Power Source Energy Services Inc. are putting up Pepsi's power plants under a build-operate-transfer arrangement.
SURE's biomass facility in La Union is a 1.2-megawatt plant that would cost $2.7 million, while Power Source's 2.2-megawatt project in Cagayan de Oro would cost $4.5 million.
The projects are being put up in Pepsi-Cola's manufacturing plants as cogeneration facilities to cut the softdrink-maker's production costs by half.
Unlike a conventional power generator, which produces only electricity, a cogeneration plant allows the production of heat and electricity, which the company could use in its beverage production.
"When you go into biomass, savings is at 20 percent to 50 percent. It includes the overhead cost-all costs, including taxes," Gabinete said.
The Pepsi-Cola official said that the company plans to ink four additional contracts for the construction of similar facilities within the year.
In total, the company is looking at putting up 11 biomass power plants in the next two to three years to complement its manufacturing plants in Cagayan de Oro, Cebu, Bacolod, Davao, Iloilo, La Union, Leyte, Muntinlupa, Naga, Pampanga and Zamboanga.
Pepsi-Cola shares closed at P2.38 apiece yesterday, down from its previous close of P2.40 per share.
EUAN PAULO C. AÑONUEVO
"Both [project developers] are saying that by June, they are already operational," he said.
Biomass plants are power-generating facilities that use agricultural feedstock as fuel. This allows them to run as base-load plants that can operate round-the-clock.
Japanese-backed Solutions Using Renewable Energy Inc. (SURE) and US-based Power Source Energy Services Inc. are putting up Pepsi's power plants under a build-operate-transfer arrangement.
SURE's biomass facility in La Union is a 1.2-megawatt plant that would cost $2.7 million, while Power Source's 2.2-megawatt project in Cagayan de Oro would cost $4.5 million.
The projects are being put up in Pepsi-Cola's manufacturing plants as cogeneration facilities to cut the softdrink-maker's production costs by half.
Unlike a conventional power generator, which produces only electricity, a cogeneration plant allows the production of heat and electricity, which the company could use in its beverage production.
"When you go into biomass, savings is at 20 percent to 50 percent. It includes the overhead cost-all costs, including taxes," Gabinete said.
The Pepsi-Cola official said that the company plans to ink four additional contracts for the construction of similar facilities within the year.
In total, the company is looking at putting up 11 biomass power plants in the next two to three years to complement its manufacturing plants in Cagayan de Oro, Cebu, Bacolod, Davao, Iloilo, La Union, Leyte, Muntinlupa, Naga, Pampanga and Zamboanga.
Pepsi-Cola shares closed at P2.38 apiece yesterday, down from its previous close of P2.40 per share.
EUAN PAULO C. AÑONUEVO
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