MANILA, Philippines – Listed Basic Energy Corp. will jointly set up with a Canadian firm an ethanol plant in Zamboanga City.

In a disclosure to the stock exchange Monday, Basic Energy said it has partnered with Nexum Energy Corp. for the 200,000-liter-per-day ethanol plant using cassava as feedstock.

Aside from the fuel additive, the joint venture also seeks to set up an eight-megawatt facility for green power, natural gas and organic fertilizer. Basic Energy officials could not be reached for more details.

Earlier, Basic Energy said it had signed a deal with Ecomarketfarms, Inc. for a cassava project worth P12.5 million, payable through shares and cash. Under the joint venture, Basic Energy will provide the capital, while Ecomarketfarms will provide the business and management plan for the project.

Ecomarketfarms is engaged in farming, development and production of cassava and has farm operations in Zamboanga Sibugay and Zamboanga City.

Basic Energy said the deal would generate revenues for the company through the sale of cassava chips to animal feed manufacturers like San Miguel Corp.

Demand for fuel from crops is expected to increase as oil companies are forced to increase the ethanol blend in gasoline starting next year. — Ava Kashima K. Austria, BusinessWorld

Source: http://www.gmanetwork.com/news/story/120555/economy/basic-energy-to-jointly-develop-ethanol-plant-with-canadian