Australian-based Cyclion Holdings PTY Ltd. is raising an initial $5 million to finance the construction of the first 50-tonne per day (TPD) waste-to-fuel plant in the Philippines which will rise by the last quarter of 2024 while the engineering of a pioneering commercial project will commence by 2025, according to the National Development Company (NDC).
Cyclion’s project aims to treat municipal solid waste (MSW) and convert it into useful fuel, such as diesel or electricity. According to the project briefer, the hotspots for the eco-friendly project will be in Quezon City, Manila, and Caloocan City.
NDC said that this potential investment with Cyclion will help fulfill the Philippine government’s national objectives of energy security and sustainability.
NDC believes “that the project falls well within its investment criteria of pioneering, developmental, inclusive, sustainable, and innovative.”
The investment is contingent on NDC's successful due diligence, Cyclion's compliance with NDC's governance framework requirements, and approval from the Management Committee and Board of Directors.
The said project in the Philippines will be the first world commercial project ever, which is why Cyclion is funding the first commercial module to show it is effective, backed by Queensland University of Technology's proof-of-concept experiment.
A 500 TPD project is projected to cost roughly $65 million and produce 35 million liters of diesel, depending on the home waste's composition (including moisture content)
This year, the National Solid Waste Management Commission projected that Quezon City can produce 2.76 million TPD, while Manila and Caloocan City can produce 1.15 million TPD and 1.23 million TPD, respectively.
Cyclion projects divert household waste from landfills, reduce health and environmental issues, and provide energy security by reducing dependence on imports and OPEC's influence on fuel prices.
Additionally, this environmentally friendly method is a cost-effective solution for waste management and a game changer in the waste-to-energy industry.
The water used is filtered in algae tanks, allowing safe reuse for agriculture or industry, and exhaust gases are channeled through algae tanks for minimal emissions.
Due to the modularity of the Cyclion facilities, it is expected that future projects of Cyclion might produce anywhere between 50 TPD and over 1000 TPD.
With the signed Letter of Intent (LOI), NDC signifies its willingness to explore, evaluate, and consider the proposed potential equity and/or project investment with the cleantech company.
The LOI was signed during the business roundtable of Australia and the Philippines in Adelaide last Oct.9.