Petroleum exploration and mining Basic Petroleum Inc. plans to diversify into renewable energy and alternative energy.
In a disclosure to the stock exchange, Basic Petroleum said its board had proposed inclusion in the firm’s business purpose the “production, manufacturing, sourcing, storage, distribution and supply, handling and transport of biofuels and raw materials used in the production of biofuels.”
Other areas that the company could get into, according to its proposed secondary purpose, are manufacture and distribution of raw materials used in producing alternative and renewable energy, and materials “for motive, thermal, power and energy generation.”
Under the proposal, Basic could also engage in “development, cultivation and production, storage, distribution and supply, handling and transport of sugarcane and other crops and resources which shall be formed as biomass to be used as feedstock in the production and manufacture of biofuels and other alternative and renewable energy resources.”
Basic had agreed to buy Zambo Norte BioEnergy Corp. (ZNBC), a would-be ethanol producer, for P64 million.
Under a memorandum of understanding signed with ZNBC owner ZN Biofuels Partners Inc., Basic will pay P10 million in cash and the remainder in Basic shares.
The Basic board has authorized management to negotiate with ZNB Biofuels Partners on the implementation of the memorandum of understanding and payment of a P5-million cash balance and an additional P6 million for preparation of feedstock for the proposed ethanol project.
Under the memorandum of understanding, ZNB Partners should guarantee ZNBC’s acquisition of 25 hectares of land for the planned ethanol facility. Abigail L. Ho, with INQUIRER.net
Copyright 2007 Inquirer. All rights reserved.
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