ADI launches P1.3-B venture into RE

By Lenie Lectura – August 26, 2018
from Business Mirror

ABSOLUT Distillers Inc. (ADI), a subsidiary of Tanduay Distillers Inc., unveiled over the weekend its P1.3-billion expansion program that will be implemented over a three-year period as part of its thrust in the renewable-energy (RE) sector.

Of the amount, P700 million will be spent to put up a cane mill, P100 million for a 3.5-megawatt biomass plant and P150 million for a biogas facility with 3.5-MW capacity.  The remaining will be allocated for expansion of its 2-MW solar-power facility anywhere from 3 MW to 5 MW and expansion of its bioethanol facility that will cost around P100 million.

“We just brought more land so that we will be able to set up our own mill, expand our solar plant, expand bioethanol production and perhaps start a biomass-power production. When we have our mill, we have the benefit of bagasse as a feedstock for biomass,” said Gerardo Tee, ADI COO.

The new mill would have a capacity of 1,800 tons of cane per day. This, in turn, will allow ADI to convert its bagasse to electricity (biomass) with a target capacity of 3.5 MW.

“We are also pursuing wastewater to energy [biogas]. There is a good potential for a biogas system,” he added.

The company is also expanding its solar-power project. ADI currently owns a 2-MW solar farm whose electricity output is sold to the grid.

Tee said the company is also planning to put up an additional 3-MW to 5-MW solar project—a combination of solar rooftop and ground-mounted solar panels—at a cost of $1.3 million to $1.4 million per MW.

Meanwhile, its bioethanol expansion will increase the capacity of its bioethanol facility to 150,000 liters per day, from 115,000 liters per day at present.

ADI operates as an alcohol distillery. The company is engaged in manufacturing, distilling, buying and selling in chemicals, including alcohol and molasses.

Tee revealed the short-term expansion program will bring the total power-generation capacity from the company’s distillery operations in Lian, Batangas, to 12 MW.

“We have been acquiring land within our area of operations as we prepare to expand our investment in renewal energy. The plan includes the establishment of our own cane mill,” Tee said.

He added that new mill will not only boost the company’s operations but also provide a venue for sugarcane farmers to sell their produce.

“The mill will be set up for raw-material security and create additional income for the farmers, giving them more options…. One of our dreams is to set up a small mill so that we will be independent of molasses, which is a very hard commodity to reckon with. Our raw material is molasses,” Tee explained.

Tee said ADI is continuously looking at technologies that can further improve efficiency and reduce electricity cost.

“It’s always on our mind on how to develop further our environmental facilities,” he said.

Tanduay Distillers, under the leadership of Lucio “Bong” K. Tan Jr., also owns Asian Alcohol in Pulupandan, Negros. The billion-peso investment in ADI does not include the expansion plans for Asian Alcohol, Tee said.