ThomasLloyd CTI Asia Holdings and International Finance Corporation (IFC) have signed $161m loan agreements for the 70MW biomass portfolio on Negros Island in the Philippines.
The agreement has been supported by the Government of Canada, the Clean Technology Fund, Bronzeoak Philippines, and WBE (Hong Kong) International Green Energy.
The portfolio comprises San Carlos Biopower, South Negros Biopower, and North Negros Biopower. ThomasLloyd is the principal financial sponsor of the plants in Manapla, San Carlos, and La Carlota. These power facilities will transform sugarcane waste to electricity by making use of a low carbon-emitting process known as circulating fluidised bed boiler technology.
Previously, sugarcane waste was burned in the fields, which led to air pollution.
ThomasLloyd Group's managing director and head of project finance Tony Coveney said: “ThomasLloyd is delighted that IFC has chosen to participate in these investments. With its use of local sugar cane waste, this project is an exciting development for all the stakeholders and especially for the local community."
IFC's country manager Yuan Xu said: "Energy is central to the country’s development, and the Philippines needs to further diversify and secure its energy sources. Converting agricultural waste to biomass power is a sustainable way of creating economic value while caring for the environment".
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The Clean Technology Fund and the Canadian Government's contribution has been made through the IFC-Canada Climate Change Program. So far, Canada has provided CAD271m.
Canadian minister of environment and climate change Catherine McKenna said: “We are pleased to support innovative projects abroad that help reduce global greenhouse gases. Through our partnership with the IFC, the Government of Canada will deliver funds that will enable the growth of renewable energy while supporting the creation of green jobs."
Besides loans from Canada and the Clean Technology Fund, IFC is mobilising funds from the Managed Co-Lending Portfolio Program, which is a new syndications platform. It provides institutional investors to passively participate in IFC’s future senior loan portfolio.