Philippine-based Basic Energy to raise $48 million for biofuels expansion

In the Philippines, Basic Energy will raise $48 million in a new share offering, with proceeds to fund the company’s biofuels expansion.

Basic Energy recently acquired Zambo Norte BioEnergy which is building a 52,000 gallon ethanol plant that will open in 2009. Philippine ethanol demand is projected to increase to 48 Mgy by 2011 with the implementation of a national E10 mandate.

The Philippines have a B1 and E5 mandate scheduled to go into effect in 2009, rising to B2 and E10 in 2011. Philippine demand for biofuels is expected to rise to 187 million gallons of ethanol and 54 gallons of biodiesel by 2011.

This year, The Department of Agriculture recently said that as of last August, 38,000 hectares were being developed for biofuels, primarily in North Cotabato, South Cotabato, Sarangani and Sultan Kudarat provinces and Gen. Santos City.

Eight Philippine companies have pledged more than $350 million towards biofuels production investment. The companies include: Bio-Energy NL, Inc.; E-Cane/Pampanga Industrial Park Corp.; Philippine Agricultural Land Development and Mill, Inc (PALM, Inc.); Zambo Norte Bioenergy; Philippine National Oil Company-Alternative Fuels Corp., Guidance Management Corp., Fuel, Inc. and Eastern Petroleum.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

In the Philippines, Basic Energy to supply 19 Mgy of ethanol to Pilipinas Shell for blending

In the Philippines, Pilipinas Shell Petroleum and Basic Energy signed an agreement for Basic to supply Shell with 19 Mgy of ethanol for blending. Earlier this week, Basic Energy announced that it w...

Basic Energy to focus on cassava production; will ramp up ethanol production in time for Philippine E10 mandate in 2011

In the Philippines, Basic Energy said that it will raise up to $30 million in equity from investors and concentrate its activities on cassava cultivation, with a goal of commencing ethanol production ...

Philippines’ CADP acquires Hawaiian Philippine sugar venture; raises $140 million for ethanol, sugar expansion

In the Philippines, Central Azucarera Don Pedro chairman Pedro Roxas said that the company has acquired a 45 percent stake in Hawaiian Philippine, a sugar company based in Negros Occidental. The compa...

Philippine’s Basic Energy signs with Germany’s MAN for 19 Mgy cassava ethanol project; MAN may invest

In the Philippines, Basic Energy announced an agreement with Germany's MAN Ferrostaal Industrieanlagen for renewable energy and fuel projects in the islands. MAN said that it may invest directly in Ba...

Basic Energy says 19 Mgy cassava ethanol plan still moving forward but funding not complete

In the Philippines, Basic Energy confirmed that it continues to proceed with its proposed Zamboanga City ethanol plant, but confirmed that the company is still seeking investment for the cassava-based...

Basic Energy, Nexum Energy JV on 52 Mgy cassava ethanol plant in the Philippines

In the Philippines, Basic Energy of the Philippines announced a JV with Nexum Energy of Canada to construct and operate a 52 Mgy cassava-based ethanol plant in the Zamboanga Peninsula. The joint ventu...