THE Department of Trade and Industry (DTI) is spearheading a green energy initiative in partnership with Australian startup Cyclion with a $3 million investment.

Through a memorandum of understanding signed with the DTI's attached agency National Development Co. (NDC), the Australian firm will establish its first waste-to-energy plant in Manila, expected to be operational by the end of 2024.

The agreement was signed in March 2024 during the Philippine Business Forum and was facilitated by the Philippine Trade and Investment Center (PTIC) – Sydney, representing the DTI's trade and investment promotion arm in Australia.

"This state-of-the-art facility will feature Cyclion's technology for converting biowaste into green fuel, significantly enhancing the country's efforts towards innovative and sustainable waste management," the DTI said in a statement on Wednesday.

"The facility's modular design will enable the processing of 900 tons of waste daily, highlighting the project's scalability and adaptability to varying waste volumes," it added.

Cyclion's technology handles municipal solid waste and converts it into valuable fuels such as diesel. It also utilizes solid waste to power Combined Heat Power generators as an approach to electricity production.

Trade Secretary Alfredo Pascual, meanwhile, said that he anticipates more projects with Australia. He also emphasized that the economic collaboration between the Philippines and Australia remains strong.

"By strengthening the collaboration between our public and private sectors, we can unlock new avenues for growth and innovation in key sectors like agriculture, education, critical minerals and clean energy," said Pascual.

For his part, Cyclion's founder and CEO Philip Major recognized the Philippines' proactive stance on environmental issues and its forward-thinking approach to solving waste management challenges.

"We are excited to work on this partnership and contribute to the country's sustainable future with our innovative and sustainable solutions," said Major.

NDC's General Manager Antonio Mauricio lauded the collaboration with Cyclion and said, "Our joint efforts will advance waste management solutions, contributing to the national agenda on energy security and environmental sustainability."