The Board of Investments approved the application for tax incentives of Pelletasia Victorias Corp. as an exporter and producer of wood and grass pellets.
Pelletasia is investing P1.5 billion in a 300-hectare napier grass plantation in Sagay City, Negros Occidental with an annual capacity of 113,568 tons. The project is expected to generate at least 576 jobs in the next six years.
Pelletasia already planted napier grass in 70 hectares and is set to start harvesting by December 2016, jumpstarting its commercial operations.
“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 Rodolfo.
“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,” Rodolfo said.
He said the project was a good example of how to encourage inclusive growth in rural areas while supporting agricultural development.
The company plans to export biomass pellets to Korea and Japan while also supplying the local market particularly sugar millers who are set to diversify into bio-ethanol production from molasses and sugar.
The company sees huge potential for exports of biomass pellets as international demand for such commodity is projected to increase from 19 million tons per annum in 2013 to about 50 million to 80 million tons by 2020.