Pepsi-Cola Products Philippines Inc. (PCPPI) will build two biomass power plants, with a combined capacity of 3.4 megawatts, worth $8 million in 2011, according to reports of local news sites.
Biomass plants uses agricultural feedstock as fuel, making it usable 24/7. Unlike other renewable energy sources, biomass plants are not weather dependent. It also allows the production of heat and electricity in one single process, which can be useful in Pepsi’s beverage production.
One of the plant, with 1.2-megawatt capacity amounting to $2.7 million, will be constructed in La Union by Japanese-backed Solutions Using Renewable Energy (SURE). The second plant will be constructed in Cagayan de Oro by US-based Power Source Energy Services, Inc. It will have a 2.2 megawatt capacity worth $4.5 million. PCPPI aims to build a total of 11 biomass power plants in a span of two to three years to complement its softdrinks production in Cagayan de Oro, Cebu, Bacolod, Davao, Iloilo, La Union, Leyte, Muntinlupa, Naga, Pampanga and Zamboanga.
PCPPI commercial director, Rendentor Gabinet explained that the objective of the softdrinks manufacturer in building the two power plants is to reduce electricity costs. The power plant is expected to reduce the cost of electricity by 50% by June 2011. Gabinet added that the use of biomass has a projected “savings at 20% to 50%” including “overhead cost and all other costs including taxes.”