Pilot Operations

Honest status of what is proven, what is converting, and what remains to be built.

Existing Capital Equipment · Proponent's Balance Sheet

Beyond the 18 reinforced azolla cultivation tanks, the pilot site hosts several major capital items accumulated by the proponent over prior operations. These assets sit on the proponent's balance sheet already and are not part of the ₱12M term loan ask.

AssetSpecificationCAPEX StatusPhase 2 Role
18 reinforced cultivation tanksCylindrical, ~28.3 m² surface / 28.3 m³ water eachSunk (~₱4.5M replacement value)Phase 1 biology & commissioning baseline
150 kVA diesel gensetCurrently standby duty; planned dual-fuel CHP conversionSunkLoop 1 — continuous CHP; ~140–160 kW recoverable thermal
Hydrodynamic cavitation unit #1HDU for on-hub CME transesterification₱1.5M sunkLoop 1 — CME self-production (~35,000 L/yr)
Hydrodynamic cavitation unit #2Heavy-duty HDU, chemical-free water sanitisation₱2.0M sunkLoop 3 — shared water utility
20 concrete hatchery poolsPrecast, inside covered warehouse ~10m from tanksSunkLoop 2 — integrated tilapia hatchery
Operational chicken flockExisting proof-of-concept at 30% azolla inclusionOperationalLoop 2 — chicken-azolla nutrient loop
Starting rabbit colonyEstablishment stage; azolla as core feedIn progressLoop 2 — rabbit-azolla loop
Total capital already deployed~₱5.5M

Pilot Site Status · April 2026

What is operational today, and what is not.

✓ Proven

Azolla Cultivation

16 of 18 tanks have dense, healthy mats. Growth rates confirm 3–5 day doubling under Philippine tropical conditions.

⟳ Converting

Biodigester Conversion

2 tanks are being sealed and fitted with HDPE gas-collection rings. Dome seals pending. No biogas production yet.

○ Not Started

PWS Upgrading

No PWS skid on site. Procurement planned for Month 0–3 post-loan drawdown.

○ Not Started

CBM Compression

No compressor on site. K-102 4-stage unit to be ordered upon loan close.

○ Not Started

Cylinder Filling

No filling manifold or CNG-rated cylinder fleet on site.

○ Not Started

First CBM Cylinder

Target: Month 8 post-drawdown. No CBM has been produced or compressed to date.

⚠️ Honest Disclosure: What the Pilot Does and Does Not Prove

Proven: Azolla pinnata grows vigorously in Philippine tropical conditions in concrete circular tanks without synthetic fertilizer, heating, or artificial lighting. No disease pressure or pest colonization observed over multi-month operating periods.

Not Yet Proven: Anaerobic digestion of azolla at scale; biogas yield consistency; PWS upgrading efficiency; 200-bar compression reliability; cylinder filling logistics; consumer acceptance; and long-term digestate offtake contracts. These are the risks the ₱12M loan is specifically designed to retire.

12-Month Commissioning Plan · Post-Loan Drawdown

From loan approval to first CBM cylinder in under 8 months. Every activity is standard for anaerobic digestion + PWS + high-pressure compression — no custom tooling, no novel engineering.

M0–M3 · Procurement

Equipment ordered & site prep. Final spec sign-off with vendors. PWS scrubber skid ordered (lead time ~12 weeks). K-102 compressor ordered. Civil works — compressor pad, pipe racks. Biodigester sealing & gas dome installation on BD1 & BD2.

M3–M5 · Installation

Mechanical & electrical fit-out. PWS skid set-to-pad & piped up. Compressor installed with intercoolers. Flash tank, caustic scrubber, dryer positioned. Cylinder filling manifold & safety interlocks.

M5–M7 · Commissioning

Cold & hot commissioning. Pressure & leak tests on all gas lines. First biogas from biodigesters (≥50% CH₄). PWS operation trials · CO₂ removal tuning. Target ≥97% CH₄ purity confirmed. Compressor ramp to 200 bar.

M7–M9 · First Output

First CBM cylinders filled. Cylinder filling trials (weight & pressure QA). First commercial cylinder delivery. Customer route and logistics finalized. Operator training complete. Revenue generation begins.

M9–M12 · Ramp to Steady State

Gradual output increase to nameplate. Feedstock logistics optimization. 82% utilization target. Full debt service begins (M12 end of grace). First annual audit & carbon credit filing.

Bank Deliverable at Month 8

First commercial cylinder fill is the hard milestone the bank monitors. Once demonstrated, the project transitions from construction risk to operational risk — materially lowering the bank's exposure profile. Thereafter the standard DSCR covenants apply.

Regulatory Permit Roadmap

A 200-bar biomethane plant requires multiple permits before commercial operation. DM-XTech has initiated pre-application consultations but no permits are yet in hand.

PermitAgencyStatusTimeline
Environmental Compliance Certificate (ECC)DENR-EMBNot yet filed4–6 months from filing
RA 9513 Renewable Energy RegistrationDOE-REMBPre-application consultation initiated3–4 months from filing
Biomethane Distribution PermitDOE / ERCNot yet filed4–6 months from filing
Building / Occupancy PermitLGUNot yet filed2–3 months from filing
Fire Safety Inspection CertificateBFPNot yet filed1–2 months from filing
Hazardous Area Classification ApprovalDOLE / PNRNot yet filed2–3 months from filing

⚠️ Permit Risk Disclosure

The 12-month principal grace period on the loan is designed to absorb typical permit delays. However, DENR ECC or DOE registration delays beyond 12 months could push first commercial revenue into Year 2, compressing the DSCR buffer. DM-XTech will file all permit applications within 30 days of loan drawdown and engage a regulatory liaison to expedite processing.

Scale Bridge · Phase 1 → 2 → 3

The pilot is step 1 of 3 — and each step funds the next.

ParameterPhase 1 · Urban PilotPhase 2 · Standard HubPhase 3 · Bicol Scale-Up
Year20262027–20312032–2035
Footprint~0.05 ha (18 tanks)114 ha leased land525 ha contiguous
Feedstock16 in-house tanks + local leased landLeased farmland within 8 kmProponent-owned Bicol site
Nameplate~50 Nm³/h (ramping)50 Nm³/h per hub~230 Nm³/h (4.6× standard)
Year 1 CBM output~82,000 Nm³~360,000 Nm³ at steady state~1.65M Nm³
LPG displaced (Y2)~287 MT/yr~7,175 MT/yr (25 hubs)~1,319 MT/yr
Households served~2,000 HH~50,000 HH (25 hubs)~10,000 HH
Indicative CAPEX₱17M total₱17M per hub₱800M–₱1.2B
Funding₱5M equity + ₱12M loanPhase 1 cash flow + commercial debtDFI / strategic / VER off-take