Philippines in $1.3 Billion Biofuel Deal (23 May 2007)

The alternative fuels division of state-owned Philippine National Oil Company (PNOC) has signed a US$1.3 billion (€966 million) deal with UK-based NRG Chemical Engineering Pte. to establish a joint venture and build a biodiesel refinery, a jatropha plantation, and two ethanol plants.

NRG Chemical will own a 70% stake in the joint venture and provide the bulk of the equity requirement in building a biodiesel refinery, two ethanol plants and a million-hectare (2.4 million-acre) jatropha plantation. PNOC-AFC will own 30% of the project.

The refinery, expected to be in operation by early 2008, will have an initial capacity of at least 350,000 metric tons a year (about 106 million gallons US), with a projected ramp to 3.5 million tons a year.

The refinery will initially use coconut and vegetable oil as feedstock until the planned jatropha plantation can start commercial production.