Sy-led BDO Unibank Inc. is funding another biomass power project of Surallah Power Generation, Inc., a renewable energy developer based in South Cotabato province.

The project sponsor-firm narrated that it “approached BDO given its reputation as a pioneer in sustainable finance in the country.” There was no mention, however, as to the amount of funding extended for Surallah.

Following the success of their initial partnership on a biomass project in Surallah, the company said it “is now constructing its second biomass-fired power plant in Palawan.”

Atty. Rio Balaba, spokesperson of Surallah, noted “BDO is very supportive in our endeavor,” adding that the bank has been providing “technical advice on how to efficiently and effectively manage and operate the power plant.”

The energy firm executive added “our credit facilities, lease lines and term loans are readily available and tailor-fit to our corporate requirements.”

Being the country’s biggest bank, BDO is also taking the forefront when it comes to lending to renewable energy (RE) projects being advanced by developers in various parts of the country.

Increasing the share of RE generation in the power mix is a major anchor to the country’s energy transition agenda – and that will largely underpin the Philippines’ contribution to global decarbonization as a way to abate climate change impacts.

On the credit window that BDO had extended to Surallah, it was emphasized that when the developer-firm “discovered that agricultural waste is best recycled into biomass energy to create a sustainable energy source, (it) recognized the need for a reliable banking partner who will provide financing as (it) ventures into power plant business.”

Prior to its plunge into biomass projects, Surallah first started as a producer of veterinary products and animal feeds; hence, the RE investment served as its diversification foray.

To date, the South Cotabato firm conveyed its power plant has been benefitting various stakeholders, as “farmers, farmers’ cooperatives and millers earn extra income by selling their agricultural waste such as rice and corn husks, as raw material for the biomass-fired power plant.”

And for the residents and entrepreneurs in the area, the RE-based generation facility has been helping them “to use more affordable electricity.”

On BDO’s part, it stated that “as a key contributor to help accelerate the Philippine economy, the bank continues to engage and lend eco-friendly companies to fuel long-term development and business success while protecting the planet.”

The bank stated it has an excellent grasp on biomass energy financing as it already has 15 projects of this technology type in its portfolio.