Itochu subsidiary Dole Philippines to supply pineapple residue to Surallah Biogas for biomass power generation
MANILA, NNA – Dole Philippines Inc., a unit of Japanese trading house Itochu Corp., will buy renewable energy from a local biogas power generator in exchange for supplying pineapple residue to reduce electricity costs and the environmental impact.
Dole has signed the deal with Surallah Biogas Ventures Corp., the biogas producer under Metro Pacific Investments Corp., a major infrastructure developer and utility, Itochu said Thursday.
Surallah will provide the fruit producer with biogas at a fixed price for 16 years from 2020 after the construction of biogas power generation facilities at Dole’s plants on Mindanao Island.
The biogas purchase from Surallah could lead to reducing annual carbon dioxide emissions of 100,000 tons, while supplying around 20 percent of Dole’s electricity needs, an Itochu spokesman told NNA.
The rising cost of electricity is one of the challenges facing Dole’s management, according to Itochu.
Metro Pacific group said in late November it will earmark 1 billion pesos ($19 million) to build the facility with annual output capacity of 50 million kilowatt hours.