Rice husk-fired Power Plant (San Jose)

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Lucio Co invests in P1-billion rice husk-fired power plant

MANILA, Philippines - Union Energy Corp. has invested in San Jose City I Power Corp., a biomass renewable energy company that will build a P1-billion rice husk-fired power plant that can generate 9.9 megawatts (MW) in San Jose City, Nueva Ecija.

It will be the first project of its kind and size that will use 100 percent rice husk in the whole country and also the first biomass power project to be launched after the feed in-tariff rates were approved last July 27, 2012. Once the project becomes operational, the burning of about 74,000 tons of sub-bituminous coal or the emission of 40,000 tons of carbon dioxide will be avoided thus, contributing in the global effort of mitigating the green house effect of harmful gasses in the atmosphere and helps in providing the electricity needs of our growing economy.

San Jose I Power Corp. is now a joint venture among Union Energy Corp. and about 20 rice millers in San Jose City. I-Power means “ipa”power which is the Tagalog term for rice husk.

Lucio Co was elected chairman of IPower with Leonardo Dayao as president & CEO. Edgardo A. Alfonso, president of the San Jose City Rice Millers Association, was elected SJC I-Power chief operating officer (COO).

“In, 2004, a study entitled Enhancing the Energy Self Sufficiency of Rice Mills in the Philippines by the EC-ASEAN Energy Facility of the ASEAN centre for Energy was conducted by the Philippine Rice Research Institute and Full Advantage Phils. International Inc., and as an offshoot of the study and with the strong endorsement from the local government unit, the rice millers of San Jose City united and formed the San Jose City I Power Corp. to put up a power plant using rice husk as fuel” said Alfonso who is an engineer.

The Clean Air Act (RA 8749) and the Clean Water Act (RA 9275), Ecological Solid Waste Management Act (RA 9005) and the passage of RA 9513 or Renewable Energy Law in 2008 intensified the enthusiasm of the rice millers to pursue the project and the approval of feed in tariff (FIT) incentive system in July 27, 2012 bolstered further their confidence and other investors that facilitated financial closure.

The groundbreaking ceremony was held last Oct. 12 at SJCI power plant site in Tulat Road, San Jose City, Nueva Ecija and was led by Secretary Rene Almendras and iPower officials.