Australian-based company, Cyclion Holdings PTY Ltd., is set to raise an initial $5 million for the construction of a groundbreaking waste-to-fuel plant in the Philippines. The plant, capable of processing 50 tonnes of waste per day, is expected to be completed by the last quarter of 2024. In addition, the company plans to start engineering a pioneering commercial project by 2025, according to the National Development Company (NDC).
The objective of Cyclion’s project is to convert municipal solid waste (MSW) into useful fuel, such as diesel or electricity. The project will focus on key areas in the Philippines including Quezon City, Manila, and Caloocan City.
NDC sees this potential investment with Cyclion as a way to support the Philippine government’s goals of achieving energy security and sustainability. The project meets NDC’s investment criteria of being pioneering, developmental, inclusive, sustainable, and innovative.
However, the investment is subject to successful due diligence by NDC, as well as Cyclion’s compliance with NDC’s governance framework requirements. Approval from the Management Committee and Board of Directors is also required.
The project in the Philippines will mark the first-ever commercial waste-to-fuel project worldwide. To demonstrate its effectiveness, Cyclion is funding the first commercial module, which is supported by Queensland University of Technology’s proof-of-concept experiment.
A 500-tonne per day project is estimated to cost around $65 million and is projected to produce 35 million liters of diesel, depending on the composition of the waste, including moisture content.
According to the National Solid Waste Management Commission, Quezon City is capable of producing 2.76 million tonnes per day of waste, while Manila and Caloocan City can produce 1.15 million tonnes per day and 1.23 million tonnes per day, respectively.
Cyclion’s projects aim to divert household waste from landfills, reduce health and environmental issues, and provide energy security by reducing reliance on imports and OPEC’s influence on fuel prices. Not only is this method cost-effective for waste management, but it is also seen as a game changer in the waste-to-energy industry.
The water used in the process is filtered in algae tanks, allowing safe reuse for agriculture or industry, and the exhaust gases are channeled through algae tanks to minimize emissions.
Cyclion’s facilities are designed to be modular, allowing for future projects that range in size from 50 tonnes per day to over 1000 tonnes per day.
A Letter of Intent (LOI) has been signed by NDC, demonstrating their willingness to explore, evaluate, and consider a potential equity and/or project investment with Cyclion. The LOI was signed during the Australia-Philippines business roundtable in Adelaide on October 9th.
