Biomass refers to biological materials that can be converted into fuel. The Philippines has an abundance of biomass energy sources, such as agricultural crop residues, forest residues, agro-industrial wastes, and aquatic biomass. Since 13 million hectares of land area are devoted to agriculture, crop residues alone have the potential to produce over 175 MW of electricity supply.
Today, biomass is considered as one of the primary energy sources in the Philippines, as it accounts for nearly 30% of the country’s total energy use.
Key Players
Major active players already in the country include: Central Azucarera Don Pedro, Isabela Biomass Energy Corporation, Cagayan Biomass Energy Corporation, Universal Robina Corporation, Central Azucarera de Bais, Crystal Sugar Company, MacKay Green Energy, The Aboitiz Group and Eastern Petroleum Group.
Key Statistics
US$300BN
Foreign investments to the biomass energy industry
16 million tons
Annual volume of residue from rice, coconut, palm oil, sugar, oil, and wood industries
7
Biomass projects that can contribute 70.35 MW to the country’s national energy supply
12%
Total national energy supply derived from bagasse, coconut husks, and shell residues
Over 272 million
Barrels of fuel produced from sugar, coconut, and rice residue
374 MW
Potential energy capacity of biomass projects
1,306 MW
Predicted capacity to be added into the energy mix by 2040
29
Operating sugar mills that produce 6,900 tons of waste per day
Over 500 million
Coconut trees that produce biomass
Incentives
- 100% foreign ownership
- Multi-year income tax holidays
- Reduced tax rate on gross income
- 0% duty on imports of equipment
- Tax credit on imports of raw materials and supplies
- Zero added tax for exports
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