The World Bank's International Finance Corporation (IFC), the Government of Canada and the Clean Technology Fund are investing $161m in three biomass power plants in Philippines.
The biomass power plants, which will be built in Negros Occidental, the Visayan island, are estimated to generate 70MW of clean renewable energy.
Planned to be constructed in the towns of Manapla, San Carlos and La Carlota, the facilities will convert sugarcane waste to electricity using a low carbon-emitting process dubbed circulating fluidized bed boiler technology.
They are expected to qualify for the biomass feed-in-tariff of the Philippine Energy Regulatory Commission. The feed–in-tariff can be availed by energy producers who can produce 250MW of biomass generating capacity.
ThomasLloyd CTI Asia Holdings is the principal financial sponsor for the project and WBE (Hong Kong) International Green Energy and Bronzeoak Philippines are share holders.
Apart from Canada and Clean Technology Fund support, IFC is also mobilizing funding from Managed Co-Lending Portfolio Program, a new platform for syndications offering institutional investors a chance to invest passively in IFC’s future senior loan portfolio.
Until now, Canada has invested about CA$271m ($209.62m) in the program that enable climate change investments that generate significant changes in environment as well as economic benefits in developing countries.
IFC country manager Yuan Xu said: “Energy is central to the country’s development, and the Philippines needs to further diversify and secure its energy sources.
“Converting agricultural waste to biomass power is a sustainable way of creating economic value while caring for the environment.”
Canada Minister of Environment and Climate Change Catherine McKenna said: “We are pleased to support innovative projects abroad that help reduce global greenhouse gases.
“Through our partnership with the IFC, the Government of Canada will deliver funds that will enable the growth of renewable energy while supporting the creation of green jobs.”