250,000 Liter per day Bioethanol Distillery

250,000 Liter per day Bioethanol Distillery by Bago Bioenergy Inc. (BBI) acquired on September 7, 2022 and ntends to build, own and operate an integrated bioethanol distillery and power cogeneration plant with a capacity of 250,000 liters per day and a co-generation power plant of approximately 16MW for internal energy requirements and sale of the remains. The bioethanol distillery will be located in City of Bago, Province of Negros Occidental, Philippines.

An active bioethanol market now exists in the country. Large petroleum companies such as Petron, Shell, and Caltex, along with smaller players, are actively in search on bioethanol suppliers with most of them willing to take on long term purchase commitments. The mandated use of biofuel, including bioethanol with a blend mandate rate of 10% by the Government ensures the presence of a ready market for bioethanol produced. Based on information from the Department of Energy (DOE), 570million liters per year are necessary to meet the demand while 330million liters are supplied by local producers in 2021 and imports are forecast to stay flat at 240 million liters.

Project internal rate of return (IRR) using net cash flows for a 20 year period are within the 11 16% range under 3 sensitivity scenarios. At a 100% debt finance level, loan repayments are expected to be completed in 11 years. Financial closure or the completion of all requisite activities is expected to be in the 181 half of 2023. The facility is expected to be constructed within a 30 month construction period. Commercial operation shall commence by the end of 2024.