Greenergy unit releases P667M to fund biomass plant construction

Biomass Holdings Inc. has released P667.527 million to San Carlos BioPower Inc. (SCB) for the construction of an 18-megawatt bagasse-fired power generation project in San Carlos City, Negros Occidental. Biomass Holdings' parent firm Greenergy Holdings Inc. said in a disclosure to the Philippine Stock Exchange that the release of the investment to SCB will be seen as a deposit for future subscription to common shares in the company from SCB's increase of authorized capital stock. Last year, Greenergy reported Biomass Holdings' execution of an investment agreement with SCB under which Biomass Holdings would acquire a 64-percent equity interest in SCB for P667.527 million. The release of the total investment price, said Greenergy in its statement, will enable the implementation of the bagasse-fired plant. The project is set to formally begin construction on April 2. Greenergy earlier said that Swiss-managed clean technology infrastructure fund Cleantech Projektgesellschaft mbH will invest up to P415.537 million for 20,776,856,000 primary shares of the company as well as the issuance of stock warrants that would allow Cleantech to subscribe to 10,489,500,000 primary shares of Greenergy at P0.02 each within one year from issuance of the warrant. Greenergy said it will use proceeds of the investment to invest in the biomass plant. — BM, GMA News