PNOC-AFC, Royal Green ink deal for jatropha crude oil off-take pact
General Santos City (25 September) -- The PNOC-Alternative Fuels Corporation (PNOC-AFC), a wholly-owned subsidiary of the state-owned Philippine National Oil Company (PNOC), on Monday signed a memorandum of agreement (MOA) with Royal Green Energy Development, Inc. to ensure an off-take allocation and procurement agreement for the sale of crude jatropha oil (CJO) produced from the seeds generated from Royal Green commercial plantation to PNOC-AFC.
"PNOC-AFC will ensure that an Off-Take Allocation and Procurement Agreement, with discounted price for products/feedstocks from the plantation, is in place for both jatropha seed and crude jatropha oil supply, either for itself or for facilitation to other interested buyers. PNOC-AFC will also provide technical support to Royal Green when applicable and necessary," said Peter Anthony A. Abaya, PNOC-AFC president and chief executive officer.
Under the MOU, PNOC-AFC and Royal Green shall join their capabilities, experiences and resources to cooperate together to ensure production of CJO for long-term sustainability in the production of jatropha biodiesel, ensure market demand to secure a guaranteed Off-take Allocation and Procurement Agreement for the sale of CJO produced from the seeds generated from the ROYAL GREEN commercial plantation to PNOC-AFC, promote the local utilization of alternative fuels and reduce dependence on oil importation, and bring development and other opportunities to the countryside by acting as a catalyst for economic activity.
For its part, Royal Green Energy Development, Inc. shall submit to PNOC-AFC a detailed plan of activities and/or project proposal to be undertaken specifying the terms and conditions for negotiation with respect to the Off-Take Allocation and Procurement Agreement between the two parties. Royal Green will also sell the jatropha seeds and extracted CJO to PNOC-AFC at a price to be determined by the parties in subsequent definitive agreement. The jatropha seeds and the CJO shall be sold to PNOC-AFC on an exclusive basis.
Royal Green is a domestic corporation which applies highly intensive technology to massively propagate high-yielding jatropha special varieties to supply seedling requirements.
Abaya said, "PNOC-AFC and Royal Green are vital partners in the jatropha project. Royal Green has significant research and technological know-how crucial to PNOC-AFC's desire and mandate to bring the country towards energy independence."
PNOC-AFC, the biofuels subsidiary of PNOC, has the primary purpose to explore, develop and accelerate the utilization and commercialization of existing and emerging alternative sources of energy and technologies and carry on the business of alternative fuels and other related activities. PNOC-AFC has been directed by President Gloria Macapagal Arroyo to have the primary responsibility over the Biofuel Project and to be the one to coordinate with the concerned agencies. (PNOC/PIA SarGen) [top]
