Caraga to operate biomass plant in Philippines
Caraga Renewable Energy, a subsidiary and power generation arm of Eastern Petroleum, has been awarded a contract to operate the first phase of a 47MW biomass-fired power plant in Agusan del Norte, Philippines.
Phase one of the project will generate 23.5MW renewable energy. Caraga signed the contract in the municipality of Buenavista. Expected to cost $100 million (€74 million), the plant will begin commercial operations by the end of 2016. It will be financed by a combination of debt and equity.
'We are already finished with site acquisition and working with the financial closing for the first phase,' Eastern Petroleum CEO Fernando Martinez was quoted as saying. 'We are optimistic that we will meet the end-2016 target for the commercial operations.'
Martinez also said debt financing in underway, with the company currently in discussions with two local banks. Caraga has started pre-development activities and intends to proceed with the groundwork later this year.
The technology provider for this project, including the power system and boilers, has been named as US-based Wellons.
It has been reported that Caraga may also be looking to build a second 23.5MW biomass power plant in the area and plans to develop a renewable portfolio exceeding 100MW.