BDO Unibank Inc. (BDO) reaffirms its commitment to sustainable development as it continues to support the growth and expansion of clients’ renewable energy projects which the Bank considers as a priority sector in financing.
BDO financed the first renewable energy biomass power plant of Isabela Biomass Energy Corporation (IBEC), a Filipino-owned corporation which uses rice mill waste to generate and supply electricity in the community through alternative sources of energy. The abundance of rice husk in Isabela allows IBEC to utilize renewable energy and produce clean fuel as a sustainable source of power for the country. The company also provides livelihood to the locals by giving value to agricultural residues which include rice husks, coconut and corn waste, utilized as fuel sources to maintain the power plant’s operations.
BDO also funded IBEC’s succeeding expansion projects. This is aligned with the Bank’s commitment in transitioning to a low carbon economy by providing access to capital to contribute to the reduction and avoidance of greenhouse gas (GhG) emissions through renewable energy alternatives.
“It is financially challenging to expand our business without BDO’s funding. They continue to trust and accommodate us by providing assistance on our operational needs and lease lines. We are grateful to BDO for being supportive not only in our power generation companies but also in our agriculture trading and milling factories,” said Leoncio Tan, President of IBEC.
IBEC’s decade-long partnership with BDO continues with the Bank’s support in building a second biomass power plant, Cagayan Biomass Energy Corporation (CBEC). IBEC hopes to further increase its power plant capacity to be more self-sufficient in power generation using local resources while helping the local community with more affordable electricity.
Biomass is a high potential renewable energy source for the Philippines given that 40% of the population is engaged in agriculture and the country has an abundance of organic agricultural waste. BDO has the leading expertise for biomass energy financing, having funded the first biomass power plant in 2013 and with 15 biomass projects in its portfolio with a total installed capacity of 164 megawatts. This total installed capacity supplies 230,131 households with renewable energy, supports 170,915 farmers, and is equivalent to avoiding emissions of 103,451 passenger vehicles in a year.
BDO continues to offer financial support to eco-friendly companies and renewable energy projects to create opportunities, uplift the lives of Filipinos and help drive national development while transitioning to a low carbon, environmentally responsible, and socially inclusive economy.