Joining the biofuels industry Jose Reyes Jr., president of Zambo Norte BioEnergy Corp., talks about Basic Energy Corp.’s plans for entry into the biofuels industry during a press briefing held at Ascott Hotel in Makati City. Zambo Norte is a subsidiary of Basic Energy. Also in photo are Alfonso Villanueva, project director of Zambo Norte BioEnergy Corp., and Josue A. Camba Jr., chairman of the Basic Energy Corp.  --RHOY COBILLA

PUBLICLY traded Basic Energy Corp. is borrowing P1.3 to P1.5 billion to help fund the ethanol development project of newly acquired unit Zambo Norte BioEnergy Corp.

In a briefing Friday, company president Oscar L. de Venecia Jr., said the long-term debt will be arranged by Banco de Oro and the Development Bank of the Philippines.

Around P2.8 billion is needed to bankroll Zambo Norte’s project. It entails the construction of a fully-integrated plant with a daily output of 200,000 liters of ethanol, and the development of 10,000 hectares of sugar cane leased farms.

The project, which will be fully operational by 2009, will likewise generate 50 tons of carbon dioxide a day through a six-megawatt cogeneration facility.

“We are now broadening our vision and moving towards cleaner and greener energy through alternative or renewable sources while we maintain our presence in oil and gas,” de Venecia said.

Ethanol fuel is a gasoline alternative made from the conversion of carbon based feed stocks such as sugar cane, sugar beets, switch grass, corn and barley. It is an alternative to petroleum based fuels and believed to be better for the environment.

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Basic Energy needs P1.5B for development

PUBLICLY traded Basic Energy Corp. is borrowing P1.3 to P1.5 billion to help fund the ethanol development project of newly acquired unit Zambo Norte BioEnergy Corp.

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Philippine stocks rose Friday, posting a second week of gains, after the central bank cut a key interest rate and higher sales at US retailers eased concern a housing slump will curb spending in the world’s biggest economy.

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