Aseagas Corp., a subsidiary of Aboitiz Power Corp., is in talks with two interested parties for the sale of an 8.8-megawatt biomass project in Lian, Batangas.
“We’re talking to two interested parties at the moment. One local, one foreign entity that would probably looking to a partnership with a local firm,” Aboitiz Power chief operating officer Emmanuel Rubio told reporters.
Rubio said Aboitiz Power was not closing its doors to a possible joint venture with an interested party.
“But if you can sell and if you can close within the year, we’ll do that. But if not, then we’ll go on… We’ll look at operating it again. We’ll see. We’re not closing that option,” he said.
Rubio said the company decided to shut down the plant last year because “the feedstock was something erratic”. He said Aseagas recently secured a steady supply of feedstock.
Aboitiz Power decided early this year to sell off Aseagas’ biomass project in Lian, calling it a failed venture.
The biomass project ceased operations in January after encountering technical problems.
Aboitiz Power said technical issues related to the consistency of the feedstock supply affected the viability of the business as a whole.
Aseagas suspended plant commissioning in November last year following the unavailability of the supply of organic effluent wastewater from supplier Absolut Distillers Inc.
The plant is worth P3.7 billion. Aseagas is a wholly-owned subsidiary of Aboitiz Power through Aboitiz Renewables Inc.
