MANILA, Philippies – Listed Basic Energy Corp. has detailed its joint venture deal with a Zamboanga-based cassava farming company for its planned biofuel plants.

The energy exploration firm told the exchange on Tuesday it would acquire Ecomarketfarms, Inc.’s cassava project for P12.5 million, payable through shares and cash. Under the joint venture, Basic Energy will act as the capital provider, while Ecomarketfarms will provide the business and management plan for the project.

Basic Energy said the deal would, in the meantime, generate revenues for the company through the sale of cassava chips to animal feed manufacturers like San Miguel Corp. Ecomarketfarms is engaged in farming, development and production of cassava and has farm operations in Zamboanga Sibugay and Zamboanga City.

Earlier, Basic Energy announced that aside from cassava, it was exploring the use of sugarcane, sweet sorghum and other feedstocks for two ethanol plants — including the plant from Eco-market farms — that it plans to set up in Zamboanga, as it capitalizes on the biofuel rush.

Demand for fuel from crops is expected to increase as oil companies are forced to increase the ethanol blend in gasoline starting next year.

Basic Energy is planning to develop two integrated multiple feedstock ethanol plants in Zamboanga with an annual capacity of some 80 million liters.

It has broadened its business initiatives to include alternative fuels and renewable energy. It used to focus on the oil and gas exploration business. — Ava Kashima K. Austria, BusinessWorld

Source: http://www.gmanetwork.com/news/story/113299/economy/companies/basic-energy-details-cassava-deal-with-zambo-firm