Philippines signs massive energy farm deals with China
The Philippines remains one of the most active players on the Asian biofuels scene. Since the government approved the Biofuels Act (earlier post), the developments and investments in the sector have entered a turbulent phase. Besides the creation of a local industry, the island state is receiving a lot of interest from China and Japan, two countries aggressively pursueing acquisitions of biofuels supplies abroad. The abundance of land, a climate suitable for tropical energy crops, a large farming community and a central geographical location in East Asia, makes the island state an ideal place for investments in the production of bioenergy feedstocks.
The Philippine government has now announced it is set to sign 19 (energy) farm agreements with China involving investments worth 240.1 billion pesos (€3.8/US$4.9 billion) over the next five to seven years.
The deals, to be signed during the state visit of Chinese Premier Wen Jiabao to the Southeast Asian country on Monday and Tuesday, included the development of 1.2 million hectares for both food crops such as rice and corn as well as biofuel crops such as sorghum and sugarcane in the Philippines.
The biggest of the deals will be a memorandum of agreement that will allow the Fuhua Group Ltd. to invest €2.96 (US$3.83) billion in one million hectares of land in the Philippines for higher-yielding corn, rice and sorghum, Agriculture Secretary Arthur Yap said.
Yap said two agreements with total investments worth P43.4 billion (€688/US$890 million) will also be signed with the Beidahuang Group, the corporate state farm of the Hei Long Jiang province. One of the agreements with the Beidahuang Group will be for the development of 200,000 hectares for rice, corn and other crops on Luzon island in the northern Philippines.
Yap further announced an agreement would also be signed with the Agricultural Department of Guangxi Zhuang Autonomous Region to develop an initial 40,000 hectares for cassava and sugar in the Philippines to produce ethanol for export to China:
ethanol :: biodiesel :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: biofuel trade :: Japan :: China :: Philippines ::
China and the Philippines, which are both trying to cut dependence on imported oil, are turning to crops that they grow in abundance such as sugar, cassava, corn and coconut oil to produce alternative bio-fuels.
Other farm agreements include investments in fruit, flowers and fiber production.
Earlier, China and the Philippines already signed a bilateral ethanol cooperation agreement (earlier post) and concrete memoranda of agreement resulting in the approval of the construction of ethanol plants by Chinese companies in the Negros region, one of the Philippines' poorest, where local farmers will grow the feedstocks, mainly sugarcane. China intends to import the ethanol (earlier post).
The island state is also cooperating with Japanese research institutions on a biofuels R&D program, mainly aimed at supporting the development of an export-oriented green fuel industry (earlier post). A Philippine biofuels company has also launched a large coconut biodiesel project, aimed at producing fuels for export to Japan (earlier post).
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The Philippine government has now announced it is set to sign 19 (energy) farm agreements with China involving investments worth 240.1 billion pesos (€3.8/US$4.9 billion) over the next five to seven years.
The deals, to be signed during the state visit of Chinese Premier Wen Jiabao to the Southeast Asian country on Monday and Tuesday, included the development of 1.2 million hectares for both food crops such as rice and corn as well as biofuel crops such as sorghum and sugarcane in the Philippines.
The biggest of the deals will be a memorandum of agreement that will allow the Fuhua Group Ltd. to invest €2.96 (US$3.83) billion in one million hectares of land in the Philippines for higher-yielding corn, rice and sorghum, Agriculture Secretary Arthur Yap said.
Yap said two agreements with total investments worth P43.4 billion (€688/US$890 million) will also be signed with the Beidahuang Group, the corporate state farm of the Hei Long Jiang province. One of the agreements with the Beidahuang Group will be for the development of 200,000 hectares for rice, corn and other crops on Luzon island in the northern Philippines.
"These agreements are expected to further reinforce existing trade and investment ties between Manila and Beijing and herald what China has described as the golden age of bilateral relations between our countries." -- Philippine Agriculture Secretary Arthur YapFive ethanol projects will also be signed, three of them involving Nanning Yongkai Industry Group. One of the joint venture projects involving Nanning will result in the production of 150,000 liters (39,630 gallons) of ethanol per day. The production estimates of the two other projects were not disclosed.
Yap further announced an agreement would also be signed with the Agricultural Department of Guangxi Zhuang Autonomous Region to develop an initial 40,000 hectares for cassava and sugar in the Philippines to produce ethanol for export to China:
ethanol :: biodiesel :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: biofuel trade :: Japan :: China :: Philippines ::
China and the Philippines, which are both trying to cut dependence on imported oil, are turning to crops that they grow in abundance such as sugar, cassava, corn and coconut oil to produce alternative bio-fuels.
Other farm agreements include investments in fruit, flowers and fiber production.
Earlier, China and the Philippines already signed a bilateral ethanol cooperation agreement (earlier post) and concrete memoranda of agreement resulting in the approval of the construction of ethanol plants by Chinese companies in the Negros region, one of the Philippines' poorest, where local farmers will grow the feedstocks, mainly sugarcane. China intends to import the ethanol (earlier post).
The island state is also cooperating with Japanese research institutions on a biofuels R&D program, mainly aimed at supporting the development of an export-oriented green fuel industry (earlier post). A Philippine biofuels company has also launched a large coconut biodiesel project, aimed at producing fuels for export to Japan (earlier post).
Article continues
Monday, January 15, 2007
EU to press China on green energy and climate change
The EU will urge China to cut greenhouse gases and cooperate on energy security as External Relations Commissioner Benita Ferrero-Waldner heads to Beijing for talks on a new strategic partnership. External Relations Commissioner Benita Ferrero-Waldner will launch negotiations on a comprehensive new Partnership and Cooperation Agreement (PCA) with China on 17 January 2007.
The pact will replace an outdated 1985 trade and economic pact. It will not only cover trade and economic ties – now worth hundreds of billions of euros per year – but also matters such as the environment, energy, security and counter-terrorism, political cooperation, agriculture, transport, customs, science and education (overview of the EU's China policies).
The focus on energy and climate change comes days after the EU launched its new, ambitious plan for an 'energy revolution' that must take the Union into a renewable, green and secure 21st century (earlier post). The plans call for EU members to endorse a 20% reduction in greenhouse-gas emissions by 2020. Up till now, under the Kyoto Protocol the EU has committed to an 8% reduction by 2012. The EU knows it can't win the 'war against climate change' on its own, and is therefor determined to build a global coalition to tackle the challenge. A recent World Energy Outlook report by the Union shows the urgency of the development of a global low carbon economy (earlier post), a vision that begins to dawn on China too. The People's Republic published its first-ever national assessment on climate change just days ago, and its conclusions are grim (earlier post).
China's role in global warming
Within this context, Ferrero-Waldner will press China – currently the second largest emitter of carbon-dioxide behind the United States – to do more to cut greenhouse-gas emissions. "China is opening a new coal-fired power station every week and it's clear we can't achieve any of our objectives on emissions without China," a Commission spokeswoman said.
China has signed the Kyoto Protocol but is not tied by any legally binding emissions- reduction targets. The EU wants to draw all major emitters of greenhouse gases - including the United States, China and India - into a binding pollution-cutting scheme so as not to penalise its own industry against tough foreign competition.
European business associations have repeatedly criticised the EU for "going it alone" on climate change and putting the competitiveness of EU industries under excessive pressure.
The EU and China signed a Partnership Agreement on Climate Change in September 2005 aimed at developing "zero-emissions" coal plants in China, based on EU technology, and at promoting the development and democratisation of new energy technologies. Ferrero-Waldner wants to speed up the implementation of this agreement: "It is very important that we get results from it," she said.
Global energy security
China's great and increasing appetite for raw materials – including oil and coal – has pushed prices up and is fuelling concern about the long-term availability of energy sources. In new energy policy plans presented last week, the Commission said it hoped for co-operation, rather than competition, from China in securing future energy supplies. Over the coming days, we will be tracking the creation of this new strategic partnership as it relates to energy and climate change [entry ends here]
ethanol :: biodiesel :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: energy security :: climate change :: greenhouse gas emissions :: fossil fuels :: coal :: clean coal :: renewables :: EU :: China ::
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posted by Biopact team at 5:30 PM 1 comments links to this post