Wood pellet producer’s P1.5-B investment project gets go signal

THE BOARD of Investments (Boi) on Wednesday said it approved Pelletasia Victorias Corp.’s application for registration as a new producer of wood and grass pellets which will be exported to South Korea and Japan.

In a statement, Boi said that Pelletasia would invest P1.48 billion here in the Philippines for its production. The project is expected to have an annual capacity of 113,568 tons and generate over 500 jobs in the next six years.

Wood and grass pellets are types of biomass fuel and considered as renewable energy sources.

“The potential benefits of wood, especially napier grass are not yet fully explored to substantially become alternative fuels and contribute to energy independence. These resources can be grown in abundance as demand of energy pellets is seen to continuously grow,” said Trade Undersecretary and Boi Managing Head Ceferino S. Rodolfo in a statement. Pelletasia has planted napier grass in its plantation in Sagay City, Negros Occidental, according to the Boi. The company is expected to harvest over 70 hectares of the total 300 hectares of the plantation by the end of the year, which marks the start its commercial operations.

“Together with other potential sources of biomass fuels like bamboo and by-products of agricultural crops, these resources are renewable which ensures their continued supply. In essence, bioenergy initiative is not only for energy. It supports agricultural development by adding value to resources which generally are left in the farm or go into waste,” Mr. Rodolfo added.

Pelletasia is planning to ship majority of its products to South Korea and Japan, while also considering an eventual distribution for local market, particularly sugar millers diversifying into bio-ethanol production from molasses and sugar.