MANILA, Philippines- Publicly-listed Basic Energy Corp. on Monday announced that it has identified a Canadian-based firm as one of its possible strategic operating and financial partners for the development of bio-fuels in the country.

In a disclosure, Basic Energy said it signed a memorandum of understanding with Nexum Energy Corp. to pursue a joint venture for bio-fuels production in the country.

Basic Energy and Nexum Energy are looking to develop and operate a 200,000 liters-per-day ethanol plant, using cassava as feedstock.

The ethanol plant is also being planned to produce up to 8 MW of green power, natural gas and organic fertilizers.

Jose Reyes Jr., Basic Energy executive vice president and treasurer, said the joint venture with Nexum could also be an avenue for other energy-related undertakings in the future.

“Nexum was among several entities which expressed ardent interest in our ethanol plant project, and with the signing of the MOU for a joint venture with Nexum, we can now proceed with developing the fully-integrated ethanol facilities we have envisioned,” said Reyes.

He said the ethanol project is in line with Basic Energy’s recent signing of a MOA with Ecomarketfarms Inc. to expand their Cassava Project in the Zamboanga Peninsula .

The MOA is expected to jumpstart the agricultural operations of BEC and generate initial revenues from the sale of cassava chips to local animal feed manufacturers and, eventually, supply the feedstock requirements of the planned ethanol plant according to Reyes.

The enactment of Republic Act 9367 or the Biofuels Act of 2006 has encouraged local energy companies to embark on biofuels development. The law provides that locally-produced ethanol should make up 5 percent of all locally-distributed gasoline by January 2009, for an annual projected ethanol requirement of 309 million liters. GMANews.TV

Source: http://www.gmanetwork.com/news/story/120429/economy/companies/energy-firm-signs-agreement-for-bio-fuels-development