URC to build P2.5-B RE plant

By Neil Jerome C. Morales (The Philippine Star) | Updated March 13, 2014 - 12:00am 

MANILA, Philippines - Snacks and beverage giant Universal Robina Corp. (URC) has jumpstarted its foray into the power generation sector through a P2.5-billion renewable power plant in Negros Island. 
Construction of its P2.52-billion bagasse-fired power plant in Negros Occidental is set to start next week while commercial operation is scheduled in August 2014, URC said in a statement. 
“Through this power plant, we will not only reduce the use of fossil fuel, but also sustain the livelihood of many sugarcane farmers in the URC Sonedco area,” said Rene Cabati, business unit general manager of URC’s sugar segment. 
The facility would support the sugar milling operations and help fill the national power demand, URC said. 
The 46-megawatt (MW) plant would use bagasse, a sugarcane by-product of the company’s sugar mill in Kabankalan, Negros Occidental. 
The sugar mill has a capacity to mill 9,000 metric tons of sugarcane a day. Sonedco, one of five mills owned and operated by the URC, would need only half the capacity of the biomass-fed boiler. 
URC said it would sell to the grid about four to five MW in the first year of the power plant’s operation and then 16 to 22 MW starting 2015. 
URC said it is also building a $35-million ethanol distillery plant in its URSUMCO sugar facility that would produce around 100,000 liters per day, or 30 million liters of ethanol fuel per year. 
“The plant that will run mostly on blackstrap molasses, a by-product of sugar, is part of the company’s program to utilize resources from existing operations, and at the same time support government efforts to reduce the country’s dependence on imported crude,” URC said. 
URC’s five sugarmills account for 12 to 15 percent of the national sugar production. Other mills are URSUMCO in Negros Oriental, PASSI in Iloilo, CARSUMCO in Cagayan province and the newly-acquired Tolong mill in Negros Oriental. 
In January last year, URC secured shareholders’ approval to venture into power generation. The snacks company of tycoon John Gokongwei recorded a net income of P2.889 billion and net sales of P22.705 billion in the October to December period, up 25.9 percent and 13.1 percent from a year ago, driven by strong sales of branded consumer food sector. URC is the company behind brands like Jack n’ Jill, Hunt’s, C2, Blend 45, Uno Feeds and Cream All. 
For this year, URC allotted P9 billion for capital expenditures. It is higher than the P5.54 billion for fiscal year 2013, P5.12 billion for 2012 and P4.55 billion for 2011. source