BIOFUEL-DRIVEN POWER GENERATION
AND SEAWATER DESALINATION
FOR POTABLE WATER SUPPLY
AND SALT PRODUCTION
IN SMALL ISLAND AND
REMOTE COASTAL COMMUNITIES

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SOPREX/MIND-BIOS Bldg., MSU-IIT Campus
A. Bonifacio Ave. Tibanga, Iligan City. 9200
(063) 223-8077 / FAX: (063)2238481

INVESTMENT OPPORTUNITY PROJECT BRIEF:
Biofuel-Driven Power Generation and Seawater Desalination
for Potable Water Supply and Salt Production in
Small Island and Remote Coastal Communities

Prepared By:
SOPREX Foundation
MSU-IIT Campus, Tibanga, Iligan City

This Project harnesses local bio-fuel resources to meet two very basic needs of small island and remote coastal communities: electricity and water. To bring down the operating costs and user charges of existing small diesel generating sets, the Project shall demonstrate and validate the techno- economic viability of using coconut oil as bio-diesel fuel. The Project shall thus be anchored on and complement the operations of a closely related investment, a village-scale coconut processing plant

The use of coconut oil as diesel substitute or fuel blend for diesel engines has already been established as technically feasible. The rising cost of diesel fuel and the depressed prices of copra, especially in these target communities who absorb their higher transaction cost of copra trading, also created its economic feasibility.

The bio-fuel power plant shall buy the coconut oil from the village coconut processing plant at the same price as diesel fuel which, at current prices, is equivalent to the plant-gate price of copra. The latter shall in turn be able to pay the farmers better terms for their copra and even much better terms for their whole nut harvest. The pre-feasibility study shows its capacity to pay the coconut farmer a stable whole nut price of P3.50 per piece, which yields the farmer a higher unit gain.

The 80KVA diesel power plant is estimated to have an operational power supply capacity of 60KW. This is sufficient to energize up to 1,500 households (3-5 adjacent barangays) and up to10 rural industries at an average power demand of 5KW. The total investment cost is estimated at approximately PhP 2.4 million.

The power consumers shall enjoy not only a stable service for longer periods, up to 8 hours night-time service to households and up to 10 hours day time power supply to small indus- tries and institutional establishments. At the lower cost of PhP3.50 per kwhr for households and a premium rate of PhP2.50 for industrial consumers, the Project shall generate an annual gross income of PhP7.41 million and a net operating income of PhP5.3 million.