Tanduay's Absolut Distillers Bares Php1.3 Billion Expansion to Strengthen Green Initiatives

Tanduay subsidiary Absolut Distillers Inc. (ADI), under the leadership of Lucio “Bong” K. Tan Jr., is investing around P1.3 billion for its three-year expansion plan to improve and strengthen its renewable energy initiatives.

ADI chief operating officer Gerardo Tee revealed the short-term expansion program will bring the total power generation capacity from the company's distillery operations in Lian, Batangas to 12 megawatts (MW).

The 100 KLPD Bioethanol Plant in Lian, Batangas is another proof of the unceasing commitment of ADI in promoting renewable energy for sustainable development.

"We have been acquiring land within our area of operations as we prepare to expand our investment in renewal energy. The plan includes the establishment of our own cane mill,” Tee said.

Bulk of the investment of more than P700 million will be used to put up a cane mill that will not only boost the company's operations, but also provide a venue for sugarcane farmers to sell their produce.

"The mill will be setup for raw material security and create additional income for the farmers, giving them more options… One of our dreams is to set up a small mill so that we will be independent of this molasses, which is a very hard commodity to reckon with. Our raw material is molasses," Tee explained.

The mill, which will have a capacity of 1,800 tons cane per day, will also allow ADI to convert its bagasse to electricity with a target capacity of 3.5 MW.

Meanwhile, ADI is investing around P100 million for its bioethanol expansion that will increase the capacity of its bioethanol facility to 150,000 liters per day from 115,000 liters per day at present.

The company is also expanding its solar power project in the Lian facility. ADI currently owns a 2 MW solar farm whose electricity output is sold to the grid.

Tee said the company is also planning to put up an additional 3 MW to 5 MW solar project (combination of solar rooftop and ground mounted solar panels) at a cost of $1.3 million to $1.4 million per MW.

The expansion would also include investment in a facility that will convert wastewater to electricity that can produce around 3.5 MW, Tee said.

"We are also pursuing wastewater to energy. There is a good potential for a biogas system," he said.

Tee said ADI is continuously looking at technologies that can further improve efficiency and reduce electricity cost.

"It's always on our mind on how to develop further our environmental facilities," he said.

Tanduay Distillers also owns Asian Alcohol in Pulupandan, Negros. The billion-peso investment in ADI does not include the expansion plans for Asian Alcohol, Tee concluded.