Basic Petroleum acquires biofuels firm

Basic Petroleum Corp. acquired Zambo Norte BioEnergy Corp. (ZNBC) from ZN Biofuels Partners, Inc. for Php120 million (US$2.51 million), after the signing of a memorandum of understanding on April 4. Under the agreement, Basic will have the right of first refusal for the ethanol project to be located in Palawan. The Biofuels Act, signed last January, initially mandates a minimum of 1% biodiesel blend within three months after the law takes effect and at least 5% bioethanol blend within two years. ZN Biofuels Partners wholly owns ZNBC, which develops and operates an integrated bioethanol cogeneration and a carbon dioxide production plant with a capacity of 200,000 liters per day, and an ethanol plant. ZNBC President Jose Reyes Jr. said the firm wants to be listed in the Philippine Stock Exchange via an initial public offering or listing through the back door to raise equity funds to partially fund the ethanol project. ZNBC recently signed a Php1.8 billion (US$37.66 million) EPC (Engineering, Procurement & Construction) Contract with Beijing-based China CAMC Engineering Co. Ltd. (CAMCE), for the construction of a brand-new integrated sugar mill and ethanol plant in Zamboanga Del Norte. (April 11, 2007)