T t Absolut Distillers sets P1.3-B expansion plan
ABSOLUT Distillers, Inc. (ADI) announced a P1.3-billion expansion plan for the next two to three years covering investments in at least 10 megawatts (MW) of renewable energy and a capacity increase for bioethanol production.
Gerardo T. Tee, ADI chief operating officer and head of distillery operations, said he would like the projects to be completed by 2021 or as soon as possible.
“I’d like to rush it by 2020 kung
sabay-sabay namin gagawin (if we will do them all at the same time),” he told reporters during a tour of the company’s facility in Lian, Batangas on Friday.
“This is about Bong’s intention to further improve our renewable energy capacity,” he said, referring to Lucio “Bong” K. Tan, Jr., president and chief operating officer of Tanduay Distillers, Inc., the parent firm of ADI.
The renewable energy projects are broken down into a 3.5-MW biomass plant, a 3.5-MW waste-to-energy facility, and 3-MW of solar power projects to add to its existing 2-MW solar farm.
“Our priority is a P700-million investment in a mill that would include a 3.5-MW biomass plant,” Mr. Tee said.
Mr. Tee was referring to a sugarcane mill that will produce molasses, the raw material for bioethanol production. Its by-product, bagasse, can be used to generate energy. The mill will create another market for sugarcane farmers who supply to a lone mill in the area.
ADI is investing around P100 million for its bioethanol expansion that will increase production capacity to 150,000 liters from 115,000 liters per day.
The solar energy expansion — a combination of solar rooftop and ground-mounted solar panels — may be ramped up to as high as 5 MW, although 3 MW is ADI’s “threshold” as it approximates the facility’s energy consumption of around 3.5 MW, he said.
Mr. Tee placed the cost of the solar expansion at $1.3 million to $1.4 million per MW, or up to P350 million for 5 MW.
ADI’s existing bioethanol facility has a digester, an equipment that produces methane gas which is fed to its wastewater to metabolize bacteria and reduce pollution. The resulting organic waste has a potential for biogas that can be used to produce energy. A biogas waste-to-energy system is part of the expansion plan, Mr. Tee said.
“That’s another $3 million,” he said, converting the cost at P150 million in the local currency.
The ADI chief said the cane mill and the biomass facility should be completed by 2019, while the solar and waste-to-energy projects by 2020, at the earliest.
Mr. Tee expects financing for the projects to be sourced 70% from banks and 30% from internally generated funds.
“We have been acquiring land within our area of operations as we prepare to expand our investment in renewal energy,” he said.
The existing bioethanol facility stands on a 16-hectare property, while the expansion projects will be built on newly acquired land of around 24 hectares. ADI is negotiating to acquire more land in the area.