Roxas and Company, Inc.

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Roxas Group Taps Indian Firm To Build P1 Billion-Ethanol Plant

ROXOL Bioenergy Corporation (RBC), the bioethanol arm of listed sugar conglomerate RoxasbHoldings, Incorporated (RHI), has tapped an India-based firm for the setting up of a turnkey bioethanol plant amounting to about P1 billion in Negros Occidental.
On Friday (June 27), RBC engaged KBK Chem-Engineering Pvt. Ltd. to design, build and activate the production facilities and equipment for the bioethanol plant.
KBK Chem-Engineering provides tailor-made turnkey solutions in the field of distilleries, ethanol, bio-fuels and cogeneration power systems for companies in India, Philippines, Thailand, Malaysia, Vietnam, Myanmar, Africa, East Europe and Latin America.
The facilities and equipment for RBC’s plant include the fermentation and distillation in ethanol production, wastewater treatment, slops concentration, product storage as well as the steam boiler and turbo-generator components. The plant will be built next to Central Azucarera de La Carlota, Inc. (CACI) in La Carlota City, a sugar mill owned by CADP Group Corporation, a subsidiary of RHI.
Last year, RHI announced its plan to enter into the energy sector through manufacturing fuel ethanol to take advantage of the definite market brought about by the enactment of the Biofuels Act of 2006. The law mandates the use of locally sourced biofuels.
RHI chairman Pedro Roxas said the bioethanol plant, which will have a production capacity of 100,000 liters a day, is expected to be completed by the end of next year or early 2010.
“We are optimistic and quite excited about this business. Ethanol is an efficient, renewable and environment-friendly fuel. It will be a substantial addition to our stream of revenues,” Mr. Roxas
Mr. Roxas said RBC will primarily use final molasses as raw material for the ethanol production to be sourced from three sugar mills – the Roxas-owned CACI and Central Azucarera Don Pedro, Inc. in Batangas and its affiliate Hawaiian-Philippine Company in Negros Occidental.
Final molasses is the dark liquid byproduct of the raw sugar manufacturing process and in refining
raw sugar into table sugar. It is made from the last boiling process of the sugar syrup and is therefore the concentrated byproduct leftover after the sucrose in the syrup has been crystallized.
The plant is designed to use different raw materials in a flexible manner and will also be able to produce ethanol from sugar and sugarcane juices.
Mr. Roxas assured the country’s sugar supply chain will not be affected should the company resort to the use of sugar or sugarcane juices as raw material.
He added the company also placed equal importance to the efficiency and the environmental issues in designing the plant.
“One of the key features of the plant is a wastewater treatment system that converts pollutants into biogas which can be used as fuel and therefore, will also allow us to save on energy costs. In addition, the slops can be used as fuel when mixed with bagasse or organic fertilizers and thus, will
eliminate any liquid waste,” Mr. Roxas said.
“This project will qualify the company to earn carbon credits as a ‘clean development mechanism’ project under the Kyoto Protocol issued by the United Nations Framework for Climate Change,” Mr. Roxas furthered.
Furthermore, Mr. Roxas disclosed the ethanol business will serve as the group’s takeoff point for diversifying its business.
“The stand-alone bioethanol plant will be designed to produce not only fuel but eventually other downstream products,” Mr. Roxas disclosed.
Refer to: Celest Jovenir Investor Relations and Corporate Communications Tel: (632) 810-8901 to 06 ext. 1811 Email:

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