Promoting Energy Crop Plantation for Biomass Power Plants

AET delivers Distributed Power Generation through the development of biomass power plants that will help industrial corporations and communities increase revenues and attain long-term sustainability. By means of a Build-Operate-Own-Transfer (BOOT) or Joint Venture Operation (JVO), AET promotes an integrated Energy Crop Plantation for Grid Connected or Captive Biomass Power Plants.  Specifically, AET supports the propagation of Napier Grass and Beema Bamboo energy crop plantations in its principal markets. The objective is to secure, under long term contracts with land/plantation owners or peoples’ communities a stable feedstock at reasonable pricing schemes that can be utilized predominantly for the biomass power plants.  

Creation of SPV Enterprise - A Special Purpose Vehicle or SPV under Board of Investment (BOI) registration as a pioneer enterprise, would be established by AET and its financial partners. We believe that with certain price and fuel supply supports from the energy crop plantations, superior returns on invested capital for the investors in the power plant are attainable in our principal energy markets.  A key to this profitability is a competitive pricing mechanism for the plantation owners and managers.

Profitable Financing Schemes for land owners /plantation managers or peoples’ communities: 

• Long Term Fuel Supply Agreement – to acquire the crop for power requirements at attractive pricing for the mutual interest of both parties; or
• Additional investment position in the Biomass Power Plant – this would be realized through a carrying interest by virtue of the terms and conditions of the Long Term Fuel Supply Agreement.

Energy Crops for Biomass Power: 

• The Pakchong Hybrid Napier Grass
• Bacolor, Pampanga Readies Renewable Energy Plant
• Beema Bamboo

Benefits of AET’s Distributed Power Generation Solution 

AET helps industrial companies attain long-term sustainability by addressing production and operational problems, such as high power costs, electric power shortfall, and environmental concerns like the use of highly polluting fuel oil or effluent discharge.

The benefits of AET’s Distributed Power Generation Solution are:

• Significantly reduced energy bills
• Reliable & sustainable electric power supply
• Energy savings that lead to overall lower production costs
• Full compliance with environmental regulations
• Income opportunities for plantation owners and indigenous peoples' communities through the integrated business of energy crop to power plant scheme
• Increased value to equity for investors from electricity generated by the biomass power plant.  In the Philippine energy market, renewable energy investor’s avenues for distributed generation include Biomass Feed-in-Tariff and the Power Supply Agreement with Distribution Utilities.

Flowchart of AET’s Distributed Power Generation Model