Surallah Power Generation Inc., a local company, is putting up a second biomass project with a capacity of 7 megawatts in Palawan province with financing from BDO Unibank Inc.
This is an expansion of the existing and operational P1-billion 6-MW biomass project funded by BDO.
“BDO is very supportive in our endeavor. The bank provides technical advice on how to efficiently and effectively manage and operate the power plant. Our credit facilities, lease lines, and term loans are readily available and tailor-fit to our corporate requirements,” said Surallah spokesperson Rio Balaba.
The second plant will be completed in 18 to 20 months from the execution of the power supply agreement with the distribution utility. “We are currently waiting for the conclusion of the PSA,” Balaba said.
Balaba said the project would help in the country’s energy security as this is fueled by indigenous agri-industrial waste such as risk husk and corn cobs.
He said BDO has been supportive of investments in the energy sector through its Sustainable Energy Finance Program.
Surallah started out as a producer of veterinary products and animal feeds. When the company discovered that agricultural waste is best recycled into biomass energy to create a sustainable energy source, it needed a reliable banking partner who would provide financing as they ventured into the power plant business.
Surallah approached BDO, given the latter’s reputation as a pioneer in sustainable finance. The partnership has been successful, and Surallah is now constructing its second biomass-fired power plant.
Surallah’s power plant benefits various stakeholders. Farmers, farmers’ cooperatives and millers earn extra income by selling their agricultural waste, such as rice and corn husks, as raw material for the biomass-fired power plant.
Residents and entrepreneurs are also able to use more affordable electricity.
BDO has the leading expertise for biomass energy financing, having funded the first biomass power plant in 2013 and with 15 biomass projects in its portfolio with an installed capacity of 164 watts.
BDO provides access to capital and funding requirements for its clients’ significant projects to achieve their goals while preserving the environment.
As a key contributor to help accelerate the Philippine economy, the bank continues to engage and lend to eco-friendly companies to fuel long-term development and business success while protecting the planet.