This thermal power plant will use wood chips grown and supplied by a local forest steward, as well as biomass purchased from local farmers, to provide 2.5 MW of baseload renewable energy in North-Eastern Luzon island, in the Philippines.

It has signed a 12-year Power Service Agreement (PSA) with a local electricity cooperative, and long-term biomass supply contracts have been entered into. Dedicated farms already exist in the area and the two main fuel suppliers are shareholders in the project.

As the area is not connected to the grid, the power plant will replace the existing government-operated diesel generators that require heavy subsidies and, thereby reduce GHG emissions from diesel.

It is envisioned that the project will benefit the tourism, fisheries and agriculture sectors of the region, and enable them to take advantage of the country’s strong economic growth.