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Crazy Carabao looks at market’s changing tastes, adds cider to craft beer lineup

AS THE CLOCK ticks closer to Crazy Carabao’s 10th anniversary, it’s releasing the Newtons Noggin Apple Cider, a new non-beer addition to its previous product lineup.

The Sta. Rosa, Laguna-based brewery already has Pilsner, Pale Ale, Wheat, Golden Ale, and India Pale Ale on its menu, with large quantities of these consumed on Nov. 23 at Odd Seoul 2 Bar in Quezon City, amid a drinking contest and a beer pong match.

The brand was founded in 2014, making it one of the earliest players in the country’s craft brew game. A favorite story of Crazy Carabao’s co-founder Brad Hannam is that, “the brand and the company really started from Manny Pacquiao.” He and his buddies would fly all the way to Las Vegas to catch world-renowned boxer and later senator’s matches, beginning in 2008. Being exposed to the American craft beer scene, the group asked themselves why there wasn’t a craft beer scene in the Philippines, and the group began the grunt work to make the beers.

While most of the ingredients are imported, they have a Filipino brewmaster to make use of the malts from Australia and Europe, as well as the hops from the Yakima Valley near Seattle. “We pride ourselves on having some of the best ingredients in the world,” said Mr. Hannam in a speech. “Our goal as a craft beer company is to help many more Filipinos enjoy the different notes and unique styles of beer. Our following is rapidly growing, and we want to keep it fresh and interesting for them by expanding our product portfolio to target the varying tastes of our customers.”

In an interview, Mr. Hannam, who has a background in construction, discussed how they’ve managed to stay in the game. The craft beer competition is getting fierce: in a recent craft beer fiesta BusinessWorld attended, there were over 20 participants, a fraction of the number of craft brewers in the country. “We made sure that we’re compliant with everything. We’re able to reach into all the big retailers, hotels, all those sorts of things,” he said. They’re also taking innovation seriously: with the aforementioned apple cider, it was a need to make something that wasn’t beer for a more discerning market. “We’re looking as well into developing [other] non-beer products,” he said.

They’ve also changed their packaging to make it more uniform, as well as beefing up their online presence (revamping the website and having a presence on online platforms Shopee and Lazada).

Mr. Hannam also told us that they’re in discussions with different groups to bring the beer abroad, and said that in about six months, Crazy Carabao beer may be found stocked in Australia and Hong Kong.

Not only has the craft beer scene changed since he started, but Mr. Hannam looks at the changing palates of Filipino as well: “They’re willing to try different things.”

Currently, Crazy Carabao is available in bars and restaurants across Metro Manila, including most of the five-star hotels in the country (the website https://crazycarabao.ph has a beer finder feature) and in all the main retailers such as S&R, The Marketplace, Landers Superstore, as well as in Lazada, Shopee, and many other top online stores. — Joseph L. Garcia

EDC board approves P10-B fixed rate bonds

THE board of Energy Development Corp. (EDC) has approved the public offering, issuance, and listing of the P10-billion second tranche of the company’s shelf-registered green bonds, its listed parent firm told the stock exchange on Wednesday.

Lopez-led First Gen Corp. subsidiary’s offering is part of its P15-billion shelf-registered ASEAN (Association of Southeast Asian Nations) green bonds.

The second tranche offering is subject to the approval of the Securities and Exchange Commission and the Philippine Dealing and Exchange Corp. (PDEx).

EDC listed the first tranche of P5 billion with PDEx on June 25, 2021.

“Due to the strong demand from investors for the first tranche bonds, the issuance was more than 10x oversubscribed, allowing EDC to exercise the oversubscription option and raise another P2 billion on top of the base issue size of P3 billion,” the company said in its 2021 release.

EDC Senior Vice-President and Chief Financial Officer Erwin O. Avante said the renewable energy company’s capital expenditure budget for next year is mainly “to cover growth projects among others.”

“We have seven ongoing projects as of the moment. But for this ASEAN green bond, we will still finalize [the] allocation which it will fund,” he told reporters.

In September, the company said it was planning to spend about $1 billion over the next three years to drill more geothermal wells to expand capacity.

EDC has an installed capacity of 1,480.19 megawatts (MW) of renewable energy, of which 1,185.40 MW comes from geothermal sources. — Sheldeen Joy Talavera

Alsons raises P1.149B from third tranche debt issue

ALSONS Consolidated Resources, Inc. (ACR) has raised P1.149 billion from the third tranche of its commercial paper (CP) program, the company said on Wednesday.

“The proceeds derived from this will primarily be used for ACR’s general working capital, showcasing the company’s unwavering commitment to steering economic progress in Mindanao,” the listed energy firm said in a stock exchange disclosure.

The latest tranche, which is part of ACR’s P3-billion CP program, has been listed on the Philippine Dealing and Exchange Corp.

The company listed its first tranche at P620 million in December last year while the second tranche at P1.38 billion was listed in June.

ACR, the Alcantara group’s publicly listed company, had its first commercial paper issuance in 2018.

In March, the company received an issuer credit rating of PRS Aa minus with a stable outlook from the Philippine Rating Services Corp. for its P3-billion commercial paper program.

A PRS Aa minus rating suggests that a company “has a strong capacity to meet its financial commitments relative to other Philippine corporates.” The rating agency assigns a stable outlook when a rating is likely to be maintained or to remain unchanged in the next 12 months.

“ACR is committed to strengthening its renewable energy projects, aiming for at least 50% of its energy mix to come from renewable sources,” the company said.

The company is targeting to complete its 14.5-megawatt (MW) Siguil hydropower plant in Sarangani by the end of the year.

It has also begun the development of a hybrid hydro and solar project in Zamboanga del Norte and a hydropower project in Negros Occidental with capacities of up to 37.8 MW and up to 42 MW, respectively.

ACR, which is said to be Mindanao’s first privately owned power generator, currently has a portfolio of four power plants with a combined capacity of 468 MW.

In the third quarter, the company’s attributable net income declined by 41.4% to P158.5 million from P270.43 million in the same quarter last year.

At the local bourse on Wednesday, shares of the company went down by four centavos or 6.78% to close at P0.55 apiece. — Sheldeen Joy Talavera

Your next favorite restaurant may be a lab experiment

YOU should expect to be pampered when you dine at high-end restaurants. The best do it with such luxurious ease that any buyer’s remorse for dropping upwards of $500 on a meal is ameliorated by the joy of the experience. Among these culinary destinations, a subset provides an additional attraction: Being part of an enterprise to better the world through the intersection of science and cuisine.

The amalgamation of hedonism and altruism is, to say the least, a delicate art. But it can also be a potentially lucrative extension of a restaurant’s original business proposition.

It shouldn’t come as too much of a surprise that Rasmus Munk — chef of Alchemist, the modernist dining wonderland in Copenhagen — has set up a 1,000 square meter research laboratory called Spora practically next door to his award-winning, multiple Michelin-starred restaurant. At Alchemist, Mr. Munk has extended the sci-fi approach to food that was pioneered by Ferran Adria’s historic, now shuttered El Bulli in Spain. That vision of cooking is “better eating through technology,” for want of an overarching description. With Spora, Mr. Munk promises to pursue the development of new protein sources (that is, meat and seafood alternatives) as well as products resulting from fungal fermentation. Or better living through mushrooms.

For starters, Spora has received about $1.5 million from the founders of Nordic Bioscience, a Danish medical-research firm that itself has received $100 million in investment from private equity behemoth KKR & Co. Mr. Munk has a record for attracting attention from financial giants. The majority owner of Alchemist — a stunningly theatrical experience where you can see where the money went — is Lars Seier Christensen, one of the richest Danes in the world (he lives in Switzerland), a restaurant aficionado and the co-founder of Saxo bank (he sold his stake to Chinese and Finnish concerns in 2018).

Since the discovery of fire, cooks have used kitchens as laboratories to perfect their recipes, long before scientists (and, indeed, alchemists) took to experimentation. With Spora, Mr. Munk follows the evolutionary (and commercial) path of Adria and other top chefs. The Spanish chef tried to shake the label of “molecular gastronomy” — which he’s said is limiting and an inaccurate description of El Bulli’s innovations. Still, the Catalan wizard helped popularize the use of foams in haute cuisine and came up with spectacular edible inventions like reconstituted olives presented on spoons as beautiful green spheres that exploded with flavor once they touched your tongue. The year before he shut the restaurant, he — along with his friend and fellow chef Jose Andres — lectured at Harvard to help draw attention to physics and chemistry 101 courses, seducing students with cuisine to fulfill freshmen science requirements.

Mr. Adria came away from Harvard learning a few things himself. After listening to a fellow presenter, he said, “I always assumed that what we were doing was chemistry. I didn’t realize it is actually physics.”1 Mr. Adria has spent the last decade or so setting down his legacy in books (among them, the gorgeous and expensive Bullipedia series published by Phaidon). He has also turned the site of El Bulli into a museum. He and his brother Albert will be collaborating with Mr. Munk on a widely anticipated celebration of El Bulli’s legacy at Alchemist in February.

Dan Barber, the chef of the acclaimed Blue Hill at Stone Barns just outside New York City, has expanded the perspective of his customers with a grassroots farm-to-table approach.

On the restaurant’s surrounding farmland as well as collaborations with agriculturalists everywhere, he’s developed innovative plant breeds that have been adopted by chefs all around the world. He’s helped popularize the habanada, a variant of the habanero chili but without the fire. Personally, I like heat but the habanada at least delivers the sweetness of the pepper for diners who have a low tolerance for capsaicin. Barber also helped spread the philosophy of low- or no-waste cooking, continuing an insightful program by Massimo Bottura in Osteria Francescana in Modena, Italy. It is now practically de rigueur for culinary virtue-signaling in up-and-coming restaurants.

So far, the most popular marriage of science and cuisine to emerge is from Alchemist’s nearby neighbor (and rival) in Copenhagen. Rene Redzepi’s Noma — which just celebrated its 20th anniversary — won fame with the pursuit of foraging: finding flavor and sustenance in the fruits, plants, and animals in a restaurant’s nearby natural habitat. But his most recent innovation was the haute cuisine fermentation lab. The Noma Guide to Fermentation, which he co-authored in 2018 with David Zilber, then head of the restaurant’s lab, became a worldwide bestseller. Its trumpeting of probiotic virtues helped make koji — the Japanese name for the aspergillus oryzae mold — a household word.

Meanwhile, diners flocked to Noma to sample the miracles of decay.

Now, top-ranked restaurants around the world boast their own fermentation labs — cold rooms where cooks can control the fruits of decomposition. In Istanbul, two-Michelin star Turk Fatih Tutak experiments with indigenous products. In Bogota, Colombia, the appeal is evident in chef Leonor Espinosa’s Restaurante Leo: Several drinks in the cocktail tasting are clearly labeled “fermented” including one made with coca leaf.

Indeed, selling commercial versions of the fermentation lab products appears to be Redzepi’s way of reincarnating Noma after he shuts down his dining room at the end of 2024. It is proof that something rotten in the state of Denmark can actually be a very good and tasty thing. You can grow a restaurant out of a lab experiment. — Bloomberg Opinion

Harold McGee’s On Food and Cooking: The Science and Lore of the Kitchen is an excellent guide.
Pioneering work popularizing the field was done by Sandor Katz in his books Wild Fermentation: The Flavor, Nutrition, and Craft of Live-Culture Foods (2003) and The Art of Fermentation (2012).

ACEN signs P20-B term loan facility

AYALA-LED ACEN Corp. has signed a term loan facility worth P20 billion, the energy company said on Wednesday.

In a stock exchange disclosure, the company said the loan is part of the approved matters in its board meeting held on March 7 — as part of the procurement of additional credit facilities of up to P32 billion.

Last month, ACEN also secured a P5-billion loan from the Metropolitan Bank & Trust Co. that it will use for “general corporate purposes, including but not limited to capital expenditures for RE (renewable energy) projects of the ACEN Group.”

In the third quarter, the company reported an attributable net income of P2.33 billion, up 20.5% from the P1.94 billion in the same period last year.

To date, ACEN has around 4,430 megawatts of attributable capacity spread across the Philippines, Vietnam, Indonesia, India, and Australia. The energy company is targeting to expand its renewable energy portfolio to 20 gigawatts by 2030.

At the local bourse on Monday, shares in the company went down by 13 centavos or 2.78% to P4.67 apiece.

Thais give digital spin to ancient ‘floating basket’ festival

BANGKOK — Thai children crafted virtual rafts and sent them floating down digital rivers, in an environmentally friendly version of an ancient festival.

Over the centuries, people have sent krathongs — small, baskets made from plants and loaded with flowers, candles, and bamboo — down waterways to make wishes and pay their respects to water spirits.

The beautiful “floating basket” or Loy Krathong festival lights up Bangkok’s canals and rivers at night — but often leaves organizers scrabbling to clear canals clogged up with hundreds of thousands of soggy vessels the next morning.

This year participants did their best to cut down on the clean-up by drawing about 3,000 pictures of krathongs and scanning them into computers during the festivities.

The designs were then projected onto a colorful representation of the water’s surface.

“It really helps a lot, because it reduces cutting trees. When you float (the real baskets) things fall into the water. This will help reduce waste,” said 11-year-old Jirayada Surapant, showing off her design by a Bangkok canal on Monday evening.

There was still a lot to do on Tuesday morning.

Across the capital, monks set out in row boats to scoop up the physical krathongs and recycle them into animal feed.

“The trash will end up in the sea, at the river mouths, completely filling them,” venerable monk Mathee Vatchara Prachatorn said, perched on the side of a boat.

“To reduce trash, everybody has to pitch in, all the villages have to help.” — Reuters

DFNN forges partnership for tech sector

LISTED gaming technology firm DFNN, Inc. teamed up with the Department of Information and Communications Technology (DICT) and the Freeport Area of Bataan (FAB) to support the country’s technology and innovation sector.

In a stock exchange disclosure on Wednesday, DFNN said it signed a memorandum of understanding with the DICT and the FAB for the Horizon Philippines project of Silicon Valley-based venture capital firm Plug and Play.

The collaboration seeks to build and accelerate the thriving startup and innovation ecosystem in the Philippines to position Bataan as a hub for technology, new employment opportunities, and sustainable economic development in the region.

The project seeks to harness the potential of the country’s talent pool and drive economic growth by pushing innovation in technology and entrepreneurship and fostering an environment that would allow the possible creation of future Filipino “unicorns” in the technology and innovation sector.

“Horizon Philippines is more than a program. It represents a commitment to nation building, fostering collaboration between government, industries and innovators to propel inclusive digital transformation,” DFNN President and Chief Executive Officer Ricardo F. Banaag said.

“Together, we will shape the horizon for the Philippines, by continuously finding new avenues to create an innovation-centered technology landscape,” he added.

According to DFNN, the Horizon Philippines project will allow the company to gain firsthand and direct exposure to emerging technology startups and will help spearhead innovation in various industries, as well as provide resources and access to emerging technologies.

“Horizon Philippines is a gateway to transformative technologies that will drive our strategic initiatives and position us for sustainable growth,” Mr. Banaag said.

Plug and Play has a presence in more than 50 locations worldwide. Companies under its portfolio have raised over $9 billion in funding, with successful exits including Danger, Dropbox, LendingClub, and PayPal. 

On Wednesday, shares of DFNN at the local bourse rose 13 centavos or 4.32% to P3.14 apiece. — Revin Mikhael D. Ochave

Italy is no country for young chefs

ROME — Like many young people growing up in Sardinia, Davide Sanna loved Italian cuisine and wanted to have a successful career as a chef. But to do so, he had to move to New York.

Mr. Sanna had worked in kitchens on the Mediterranean island and in northern Italy for four years, starting when he was only 19. But he was toiling 60 hours a week to take home just €1,800 ($1,963.26) a month, at best. In the busy summer season, he’d be at the stove every day for two months, without a break.

Then a fellow chef put him in contact with a restaurateur looking for cooks in New York, Mr. Sanna said. He accepted without giving it a second thought.

For the past year, the 25-year-old has cooked at Piccola Cucina, an Italian restaurant in Manhattan’s glitzy SoHo district, home to designer boutiques and high-end art galleries. In New York, he can pull down $7,000 a month, working a 50-hour week.

“Here there are regular contracts, nothing in the ‘black,’” said Mr. Sanna, using the Italian slang for undeclared labor. “And, if you work a minute extra, you’re paid for it. It’s not like that in Italy.”

Italy’s food is famous the world over but many talented young chefs, hoping to make a career in their country, find themselves frustrated by low pay, lack of labor protection and scant prospects. Since the launch of Europe’s single currency 25 years ago, Italy has been the euro zone’s most sluggish economy.

Star chefs like Massimo Bottura, who runs the Osteria Francescana in Modena, are reinventing Italian cuisine. But, given its rich culinary tradition, Italy arguably finds itself under-represented by top-class restaurants. It has 13 with three Michelin stars — the prestigious guide book’s highest ranking — the same number as Spain. Japan, meanwhile, has 21, and France boasts 29.

The current outflow of Italian chefs due to difficult conditions at home is not a new phenomenon.

Italians began taking pizza and pasta to the world during mass emigration in the late 19th century. The popularity of Italian cuisine in Europe and the United States grew as more immigrants arrived after World War II.

But the number of young Italian leaving to seek work in faster-growing economies has been steadily rising for decades — though the trend was briefly interrupted by the COVID-19 pandemic. Emigration, and a low birth rate, has contributed to a mounting demographic crisis: Italy’s population of 59 million is shrinking.

Much of the emigration has come from the Mediterranean islands of Sicily and Sardinia, as well as Italy’s economically underdeveloped south — the mezzogiorno.

‘FIVE YEARS’ TIME? NOT IN ITALY!’
Roberto Gentile, a 25-year-old chef from Sicily, has worked for the last two years cooking French food at Le Suquet, a two-star-Michelin restaurant near Toulouse, after previous jobs in Britain and Spain.

Despite his passion for Italian cuisine and the sentimental desire to go back to what Italians call the Bel Paese (the beautiful country), Mr. Gentile said the economic disincentives were too strong to consider returning.

“After gaining experience abroad and reaching a high level, you would hope to go back to Italy and find a suitable role and salary, but that doesn’t happen,” he said. “Where do I see myself in five years’ time? Not in Italy!”

Giorgia Di Marzo decided to take a chance and return to Italy in 2018, after working in Britain as a chef and restaurant manager for eight years. The 36-year-old said she wanted to put down roots and be closer to her family.

But an offer of just €1,200 ($1,284.84) a month to work 50 hours a week in a restaurant in Milan made no sense for her. Wages in Italy have declined over the past 30 years, adjusted for inflation — the only country in Europe where that has happened.

Instead, Ms. Di Marzo opened her own eatery in her native Gaeta, a seaside town between Rome and Naples that has been a resort dating back to the Roman Empire. But soon, she ran into trouble.

Last year, rising costs forced her to close for three months during the winter low season and she could not get a loan from her bank for a sector considered at risk after the COVID pandemic.

“I stay afloat, but I can only offer seasonal contracts,” she said. “I can’t ensure work for my employees all year round.”

Eating out is part of everyday life in Italy. It has 156,000 restaurants and takeaway food outlets, the second most in Europe after France, data from international industry research group IBISWorld shows.

But the ratio of new restaurants opening to existing ones closing has been negative for each of the last six years in Italy, according to the sector’s business lobby FIPE, amid high taxes, endless red tape and the difficult economic backdrop.

‘ALWAYS IN THE BLACK’
For many restaurateurs, the answer is not to declare their workers at all and a large “shadow economy” is rife in the restaurant business. Undeclared work accounts for around a fifth of the Italian private sector’s output, well above a European Union average of 15%, according European Labour Authority statistics.

Such undeclared work is particularly rife in the hospitality sector, Italian economic data shows.

Italians take their food very seriously, not just as nourishment and pleasure, but an important part of their regional and national identity.

Typical dishes include tortellini in broth from the northern Emilia region, spaghetti alla carbonara from central regions around Rome, and pasta alla Norma in Sicily. Naples is the original home of pizza.

A peep into the kitchens of even the most traditional Italian restaurants shows the local dishes are often prepared by low-paid immigrants.

One such is Julio, a 31-year-old Peruvian who declined to give his surname because he has no work permit.

He prepares pizza and pasta in a Rome restaurant, working 48 hours a week for a monthly salary of €1,400 to €1,600 “always in the black.”

While similar situations are found in other developed nations, in Italy it is a relatively new phenomenon, with mass immigration only beginning around three decades ago.

‘COOKING IN OUR BLOOD’
Fifty-year-old Francesco Mazzei trained as a chef in his home region of Calabria in Italy’s southern toe, and then in Rome, before leaving 27 years ago for London where he arrived “without even money for cigarettes.”

He honed his art for two decades in Britain and around the world and in 2008 opened his own renowned restaurant, called L’Anima, in London’s financial district.

That launched a career which has seen him open other eateries in London and Malta and establish himself as a restaurant entrepreneur and consultant.

“I could never have done any of this in Italy,” he told Reuters.

“In England you have a chance to do business, a cook does not cost you twice as much as you pay him,” he said, referring to high Italian social charges and taxes on labor. Partly for this reason, young chefs in Italy take home half the salary of their peers in Britain while working longer hours, Mr. Mazzei said.

British people have become knowledgeable about Italian food, even learning about regional differences, he said, so he preferred to hire Italian chefs to satisfy an increasingly demanding clientele.

“We Italians have cooking in our blood. We’re the only people in the world who ask ‘what shall we eat this evening’ while they are having lunch,” Mr. Mazzei said.

MELONI’S MINISTRY FOR FOOD PRIDE
Italian Prime Minister Giorgia Meloni’s right-wing government has set up a ministry for food sovereignty as part of a drive to boost national pride. The minister, Francesco Lollobrigida, suggested in March establishing a task force of tasters to monitor quality standards in Italian restaurants around the world, to avoid chefs getting recipes wrong or using ingredients that aren’t Italian. But the government has also facilitated the temporary and informal work arrangements that blight the restaurant sector in Italy, and it opposes calls for a minimum wage.

Antonio Bassu, a 28-year-old Sardinian chef who works in a high-end restaurant in Barcelona, said Spanish salaries were lower than in northern Europe but working conditions were still far better than back home.

A chef in Spain can expect a regular open-ended contract based on 40 hours per week with two days off, he said, unlike in Italy where they are likely to be hired on a temporary contract, if there is a contract at all.

“Here you don’t have to beg for what you get,” Mr. Bassu said. — Reuters

EV on my mind

AUDIUSA.COM

Two things are starting to make me consider the shift to an electric vehicle (EV) for daily use: improvements in vehicle capability, and operating and maintenance cost. It all started with a test drive in August, that allowed me to personally drive an EV through water at wading depth, which boosted my confidence in an EVs ability to survive Philippine roads.

Then, recent information that locally available EVs now have ranges of about 400 kilometers for every full charge. And more recently, a discussion with a dealership regarding operating and maintenance costs, warranties, and after-sales support. Another confidence booster was the story on how some local logistics companies have shifted to EV fleets.

EVs are presently more expensive than regular cars, and the price difference is more than enough to make one think twice about taking the plunge. Also, hybrids appear to be more practical especially if a household can own only one car. An incentive, of course, is that by law, EVs and hybrids are exempted from number coding until 2030.

Former BusinessWorld colleague Brian Afuang gave me the chance to view up close and personally try out the fully electric Audi Q8. The experience made me realize how extensively technology has changed motoring.

The boosters: improved range and lifespan of EV batteries. The 400-kilometer range seems to have become the standard, while battery life now hovers around eight to 10 years. Improved design has also made EVs more weather-proof. But the more important consideration, in my opinion, is operating and maintenance costs.

For people who can afford to own and keep more than one motor vehicle, the option is to own at least one EV — mainly for city driving — and one gasoline or diesel car. For people who can afford only one, I suggest a hybrid car that runs on gasoline and batteries. Fuel cost and coding exemption will be the main consideration, and the limited number of public charging stations will not be an issue.

The Audi Q8 E-Tron is only for the wealthy few who can afford its price tag of P6.25 million to P7.25 million. It has a claimed range of up to 600 kilometers, and can wade in about half-meter of flood water. As I wrote previously, I am sure by next year even more EVs will start trumpeting longer ranges as well. And I would not be surprised if EV makers, by 2024, retails EVs with ranges of 700-800 kilometers.

A recent story by Reuters published in this newspaper reported the plan of the German government to put 15 million EVs and hybrid cars on the road by 2030. German Chancellor Olaf Scholz planned on meeting car executives, ministerial leaders, energy executives, and labor unions to discuss how Germany could achieve the target in seven years. To date, there are roughly 2.2 million cars with an electric motor on German roads, of which 1.3 million were fully electric cars.

“The chancellor is convinced the goal could be reached if carmakers produced more cheaply priced and longer-range cars,” government spokesperson Steffen Hebestreit told a press conference. A spokesperson for the transport ministry also said the government was working to add more to the over 100,000 public charging stations already built.

Locally, having more public charging stations will be a big plus to EV ownership. I am certain additional investments in charging networks are forthcoming. It is inevitable, especially with corporations now shifting to EV fleets. Fleet sales is a major multiplier of EV sales, and should be the focus over retail. Corporate fleets have the most to gain from the EV shift.

As for households looking at EVs for personal use, mainly in the city, the numbers have seemingly become favorable. For P1.6 million, for instance, one can buy a China-made EV or a Japan-brand hybrid car built in Indonesia. The China car gets a five-year service warranty, while the Japan car gets only three. Both have a 100,000-kilometer warranty. But, in addition, the China car gets an eight-year battery warranty.

Now, let us assume a household that runs maybe 12,000 kilometers annually, or 1,000 kilometers monthly. For the hybrid car, assuming a mileage of 25 kilometers per liter, then it is a monthly consumption of 40 liters of fuel. At an average of P60 per liter, then it is a monthly fuel cost of P2,400. For the year, it’s a total of P28,800.

In comparison, the China car claims a range of 400 kilometers for every full charge. It comes with a charging unit that can be installed at home. Eight hours to full charge from zero, I am told. I am uncertain as to how much the charging cost will be, or how much will be added to your monthly electricity bill at home. But at 400 kilometers per full charge, then the unit will have to be charged maybe only three times every month. If it adds less than P2,400 to the utility bill every month, then the EV comes out ahead in terms of “fuel” cost.

As for maintenance, at 12,000 kilometers annually, then the hybrid will need to be serviced maybe twice a year. In my case, I go for preventive maintenance service or PMS every 5,000 kilometers. At an average cost of P6,000 at every interval, for oil and lubricants and service and others, then that’s maintenance of at least P12,000 yearly for the hybrid.

As for the EV, I was told that it will require first inspection at 5,000 kilometers, then an annual inspection thereafter — just to make sure everything is in order. Unless something needs to be fixed, repaired, or replaced, then annual inspection should not cost much. Probably just a matter of checking battery life and performance. No oils or lubricants to replace, no used oil to dispose of.

Price difference? The EV costs P1.6 million. The hybrid is priced the same. The non-hybrid version of the Japan-brand car is P1.3 million. The P300,000 difference in the price of the non-hybrid and the EV can be recovered from not having to pay for fuel and higher maintenance cost. Over a five-year period, that difference is P5,000 monthly. The higher the mileage yearly, that difference becomes smaller.

While the financial math appears to make sense, I guess the only remaining question is whether one is comfortable with buying and owning a wholly China-made car. This is where brand equity, track record, and reliability will come into play.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

Mary Mediatrix Medical Center taps EEI Power in shift to renewables

LISTED construction firm EEI Corp. said its energy arm had partnered with Mary Mediatrix Medical Center (MMMC) for the installation of solar photovoltaic (PV) systems.

In a stock exchange disclosure, EEI said EEI Power Corp. signed the contract with MMMC for the installation of a 376.2-kilowatt-peak  solar PV rooftop system. MMMC is part of Mount Grace Hospitals, Inc.

The installation is in line with MMMC’s sustainability goals as the capacity is part of the company’s energy consumption, EEI said, adding that construction works for the project will start immediately.

As the healthcare facility taps renewable energy, the move will help reduce the hospital’s reliance on traditional fossil fuel and allow long-term cost savings, EEI said.

The renewable energy capacity is expected to produce about 509,000 kilowatt-hours of clean energy per year, which will help reduce MMMC’s carbon footprint by 4,988 metric tons, EEI said. The reduction is equivalent to 86,751 liters of gasoline reduction, it added.

Established in 1931, EEI has business interests in construction services and distribution of industrial and machinery systems. Its energy arm offers power solutions for electrical equipment and services.

At the stock exchange on Wednesday, shares in the company closed seven centavos lower or 1.22% to end at P5.69 apiece. — Ashley Erika O. Jose

Tatung Sarthou wins another cookbook award

IF WE’RE being honest, we’re starting to lose track of celebrity chef Myke “Tatung” Sarthou’s wins at the Gourmand World Cookbook Awards. For this year, Mr. Sarthou’s Simpol Dishkarte won the 2023 Best Celebrity Chef Book in the World at the 29th Gourmand World Cookbook Awards held at Riyadh, Saudi Arabia on Nov. 28.

Mr. Sarthou got his first Gourmand World Cookbook award for Philippine Cookery: From Heart to Platter in 2017 for the Best TV Chef Book outside Europe category, while Simpol Kitchen Secrets won in two awards in 2021: Celebrity Chef – World, and Easy Recipes at home. According to a release, there were around 205 submissions this year, with Simpol Dishkarte coming out on top.

“The contents of Dishkarte span kitchen fundamentals, safety tips, cooking techniques, ingredient deep dives, and step-by-step recipes, accompanied by illustrations and personal reflections,” said BusinessWorld’s story about Dishkarte (https://www.bworldonline.com/arts-and-leisure/2023/05/18/523457/chef-tatungs-book-dishkarte-uses-taglish-to-teach-cooking/). The book focuses on letting Filipinos learn more about cooking techniques, but also the logic behind procedure, conveniently worded in Taglish (a mixture of Filipino and English often used in casual conversation).

In a Facebook post about his latest win, Mr. Sarthou wrote, “Winning this prestigious award for the third time feels like winning the coveted Ms. Universe crown, pero wala pong lutuang naganap sa laban na ito (no cooking was done in this fight — taking after the Filipino expression that a rigged contest is “cooked”).”

“Allow me to express my deepest gratitude for the honor of having received the 2023 Best Celebrity Chef Book in the World, a grand award bestowed by the prestigious Gourmand World Awards,” he continued.

“Creating Simpol Dishkarte was a labor of love, and receiving this award validates the countless hours of dedication and hard work that went into its production. This achievement proves that hard work and perseverance does pay off. After all, when I started working on this book, there was a bit of skepticism: ‘Why invest in such a book?’ Yet here we are, winning two awards in a row. First the Filipino Reader’s Choice Award and now this very prestigious international award,” he said. “All this would have been difficult to achieve if I had been alone. And so, I am deeply thankful to everyone who contributed to the success of the cookbook; from the talented team who collaborated on the project, and to the supporters who have been with me every step of the way.”

It’s still all business for the chef: after this quite emotional post, he was already posting about their Ensaimada Grande, available at his latest venture, Gateway 2’s Tindeli. — Joseph L. Garcia

The Global South has lost faith in COP28

BRENDAN O DONNELL-UNSPLASH

THERE is no better way to remind ourselves of the urgency of climate change than by listening to the impassioned pleas of the Maldives Environment Minister, Aminath Shauna, when talking about the future of her idyllic homeland. “I do not want to leave my home, I don’t want my three-year-old daughter to leave our home,” she told me. On stage at the Bloomberg New Economy Forum earlier this month, she made that call again, urging “the world and international organizations, governments, to identify and to say the issue is a climate crisis.”

Hers is not an isolated story. The Maldives is just one of a number of countries that make up the Global South — a term used to describe developing nations, typically in Africa, Asia, Latin America, and the Caribbean. They face a trifecta of problems: poverty, inequality, and the effects of a warming planet. They are on the front line of this environmental crisis. Increasingly, they feel burned by richer states that have reaped the benefits of using dirty fuels to grow their economies, and are now not willing to cough up the cash for those suffering the consequences.

So when the United Nations Conference of the Parties, known as COP28, starts on Thursday, they will be hoping the gathering will do more than just discuss the global environmental crisis. Focusing on renewable energy, reforming the way funding is distributed to mitigate and adapt to climate change, and actually delivering money to developing nations would be huge first steps toward restoring faith in the process; and addressing goals that are in all our interests.

The frustration is growing. In September, the Least Developed Countries group pointed out that while they are home to more than 14% of the world’s population, they only contribute around 1% of emissions from fossil fuels and industrial processes. The bloc also notes that although it has the least historical responsibility for climate change, it is being forced to adapt beyond its capacities.

Most egregious, in the eyes of members of this group, is the lack of action on the loss and damage fund, a mechanism that is supposed to provide financing for poorer nations most vulnerable to, and impacted by, climate change. Developing countries want the fund to provide at least $100 billion worth of annual financing by 2030. Ahead of the conference, the chair, Madeleine Diouf Sarr from Senegal, was clear; how the new pot of money will operate and whether it will get early pledges from countries will be key criteria for success at COP28. “An empty loss and damage fund won’t do anything for our people,” she said. “When their livelihoods are dried up by drought, their schools and hospitals are washed away by floods or when the rising sea takes their homes.”

But even before the meeting in Dubai begins on Thursday, divisions are running deep. There’s been no firm commitment from developed nations for an immediate and notable financial contribution. The US, one of the greatest global champions of addressing the climate crisis, had pushed for the commitments to be voluntary. It lost that bid, but did manage to insist that the fund can receive money from the private sector, too, ensuring that financing environmental adaptability would not solely be a government matter. While the private sector has a place in climate financing, a sizeable contribution from the US would have sent a promising signal — instead of the “million” currently on the table. China, which now emits more carbon than every developed nation put together, is also falling short of expectations. It won’t help that President Joe Biden is reportedly now not planning to attend the summit. Neither will China’s President Xi Jinping, further diminishing its significance.

None of this should be seen as progress, or satisfactory for the needs of the Global South, notes Gordon Brown, the former UK prime minister who is now a UN Special Envoy for Global Education. He is proposing that this year, COP28 works to get the world’s wealthiest petroleum states to pay a 3% voluntary tax on their 2022 revenues, which he estimates could raise $25 billion. That would go a long way toward funding the needs of those least developed and developing countries to help them prepare for the future, with the ultimate aim of ensuring a climate crisis doesn’t turn into a refugee crisis.

A sensible and logical plan, but one that would need the buy-in of the petro-states. There’s been much criticism of the decision to have the United Arab Emirates, one of the world’s biggest oil producers, host the meeting: Human-rights activists and environmentalists have called for it to be boycotted all together. But this is where the UAE and its COP28 President Sultan Al Jaber, the chief executive officer of Abu Dhabi National Oil Co. — one of the largest petroleum firms on the planet — could play a bigger role in convincing producer nations of their responsibilities. That seems an unlikely priority given the latest media reports of his plans to use the summit as a way to push the oil and gas agenda. Another possible move would be to do the same with energy companies, which have seen bumper profits from Russia’s war in Ukraine, while people in poorer nations are disproportionately affected by higher electricity costs as energy prices soar.

“We cannot continue to put the interests of a few before the lives of many,” declared the Prime Minister of Barbados, Mia Amor Mottley, at the UN General Assembly in September, as she urged both companies and leaders alike to do more to address rising sea levels and a warming planet. She has been one of the biggest critics of richer, more developed countries and after last year’s COP27 summit warned of a billion environment refugees by the middle of the century if governments failed to tackle the crisis. What she and her counterparts in the Global South are asking for is climate justice. COP28 is a chance to deliver it to them.

BLOOMBERG OPINION