Biomass RE Program Boosts Agriculture

Manila Bulletin
By MELODY M. AGUIBA
March 8, 2012, 11:41pm


MANILA, Philippines — The government’s biomass renewable energy (RE) program will have a gross value added (GVA) of P5.57 billion to agriculture as it targets an added biomass capacity of 277 megawatt (MW) by 2015.


The RE program under the National Convergence Initiative (NCI) will bring about the economic benefits aside from reducing greenhouse gas emission to the environment.


"There will be empowerment of rural folks through new employment and incentivized food production by value adding to agricultural output from the use of agri-residues alone," said Philippine Agricultural Development and Commercial Corp. (PADCC) President Marriz B. Agbon president in his report on investment opportunities in biomass.


Estimates show that the biomass program will employ 78,000 for construction of the power plants, 4,000 for plant operation, and 7,000 from the feedstock supply chain.


Benefited farm families count to 576,941, said Agbon, also NCI focal person. Biomass uses merely agricultural waste such as rice husks and coconut husks for power generation and therefore brings significant value adding to farmers’ production.


The NCI is linking government agencies — Department of Agriculture, Department of Agrarian Reform, Department of Environment and Natural Resources — to the national program on biofuels and biomass, among others.


This is to support the Biofuels Act and the Renewable Energy Act that mandated local development, supply, and use of environment-friendly fuel and electricity.


In relation to the RE program, the Development Bank of the Philippines also reported before the international bio-energy conference early this year that it has Official Development Assistance (ODA) facilities that finance RE projects.


These involve funding from the Japan International Cooperation Agency’s Environmental Development Project, P10.59 billion, and the Japan Bank for International Cooperation’s Industry Support Loan Program, P5.415 billion.


World Bank has a separate P1.4 billion fund for Rural Power Project for biomass, according to DBP Chief Development Officer Benedicto Ernesto R. Bitonio Jr. Bitonio painted a rosy picture for investments’ in rural areas with local bank’s huge available cash that may also benefit the biomass sector.


“Local banks are very liquid. Total funds invested under the Bangko Sentral Special Deposit Account amounted to P1.66 trillion in 2011,” he said.