German investment banker ThomasLloyd and a consortium of companies will together invest $500m for the development of four renewable energy projects in Philippines.
The consortium besides ThomasLloyd, includes Greenergy Holdings, bioenergy developer Bronzeoak Philippines and Chinese investor Wuxi Huaguang Boiler.
The consortium has now commenced development of the 18MW San Carlos biomass project in Negros, with an investment outlay of $18m and scheduled completion by end of 2013.
Located in San Carlos City, the biomass plant will employ sugarcane stalks and other agricultural waste to generate power.
Further investment will add an additional 100MW of renewable energy to the Philippine energy sector within three years.
ThomasLloyd CEO Michael Sieg remarked that that joint development agreement is being extended for another two plants in Negros Occidental and one in Luzon.
"We have committed, as ThomasLloyd, $50 million in development financing and construction equity to these projects, which will make Thomaslloyd the biggest foreign investor in biomass plant in the Philippines," noted Sieg.
Sieg added that the firm is looking to expand its biomass portfolio based on the San Carlos BioPower project, for growth in the Philippine market.
"There is natural demand for the end product, which is electricity," Sieg said.
The projects will produce energy from burning coconut husks and await approval from the Energy department.