San Carlos Bioenergy, Inc.(SCBI) is a PEZA registered company incorporated in May 2005 to construct, own and operate an integrated fuel bioethanol distillery and power co-generation facility, thus marking both Philippine and Southeast Asian history as the First Fuel Bioethanol and Co-generation Facility. Situated at the San Carlos Agro-Industrial Economic Zone on the Eastern coast of Negros Occidental, SCBI takes advantage of both favorable weather patterns and the best quality and yield in sugarcane to supply the country\'s fuel and energy demands, in compliance with the mandates of the Biofuels Act of 2006, otherwise known as RA 9367 and the Renewable Energy Act (REA) of 2008, otherwise known as RA 9513.
The common factor between the two Republic Acts is the use of biomass as the primary resource in domestically producing anhydrous fuel bioethanol (AFB) in compliance with the Philippine National Standards (PNS), as well as electricity from renewable resources, such as sugarcane. This is to lessen the country\'s dependence on imported traditional fuel, generate jobs on the country side, improve air quality, and accelerate the Philippine economic situation by mandating a protected market for alternative resources through incentives for the Biomass and Renewable Energy Sectors that come in forms of VAT-exemption, income tax holidays, Feed-in Tariffs (F-iT), among others.
Encouraged by the passage of RA 9367 and the assurance of the Alternative Fuels Program of the Department of Energy (DoE), Bronzeoak Philippines, SCBI\'s developer, provided unique and valuable expertise in biomass power plant engineering, while its principal sponsor, Zabaleta and Company, provided sugar-based agricultural experience. On the other hand, equity capital was raised both domestically through San Julio Realty, Inc., Valmayor Ventures Inc., National Development Company, and the Majent Group, and internationally through FE Clean Energy of New York.
On a daily basis, SCBI processes a maximum of 1,500 tons of sugarcane to produce 125,000 liters of Bioethanol and generate a rated capacity of around 7.4MW where at least 2.4 MWh is to be supplied to the power grid. The production of both alternative and renewable energy is governed by separate contracts, apart from those executed with other government agencies under the Executive Branch.
The company has a ten (10) year sales agreement with Petron Corporation, the country\'s leading oil company and gasoline retailer, for the supply of bioethanol, as well as a thirty (30) year agreement with VMC Rural Electric Cooperative (VRESCO), Inc. the local distribution utility, for the supply of electricity, both on a take or pay basis. Conversely, the company has a fifteen (15) year agreement with three (3) local plantations for the supply of the bulk of its sugarcane requirements and works with smaller sugarcane planters and cooperatives for the balance of its feedstock requirements.