The National Power Corp. (NPC) last Monday signed a memorandum of understanding (MOU) with APTI Renewable Energy Corp. (APTI REC) to promote and identify priorities for the development of sustainable renewable energy using biofuel and biomass hybrid power in areas under Small Power Utilities Group (SPUG).
SPUG power plants are located in islands and communities that are not connected to the main transmission grid which is funded by revenues from power sales and from the universal charge being collected from all power consumers in the country.
Fernando Martin Roxas, NPC president and chief executive officer, said in a statement the move is also part of the firm’s sustainability agenda, to gradually minimize its operation’s dependence on fossil fuels.
“The MOU will allow us to access APTI REC’s technology on the use of biofuel or palm oil as an alternative fuel. Together, we shall also collaborate to build a prototype bioenergy renewable energy power plant that uses palm oil and develop an integrated logistical and technical system for the production of biofuel and biomass,” Roxas said.
Roxas added there is a potential for the application of APTI REC’s technology in SPUG since most of these areas can be converted into palm oil plantations.
“Apart from high fuel prices, off-grid areas also suffer from inclement weather situations that sometimes hinder the delivery of fuel which in turn affects their power supplies. If we can develop a model of this technology on various SPUG areas, we can save costs on fuel and hauling,” Roxas explained.
Harley Luis Leaño APTI REC president and chief executive officer, said the partnership is also expected to help “alleviate poverty in the countryside.”
NPC said the success of the partnership and the programs that will stem from it will also eventually help the state-owned company to achieve more affordable, cleaner and renewable energy while providing additional livelihood opportunities in off-grid areas.
NPC operates 281 SPUG plants in 189 municipalities across 35 provinces in the country.
NPC is also tasked to oversee watersheds and locate indigenous sources of power.
APTI REC is a subsidiary of Asian Pyrochem Technologies Inc., authorized export and import channel of the governments of Indonesia and the Philippines under a government-to-government energy program through PT PP Persero TBK and Philippine National Oil Co. – Jed Macapagal
