ESG Agriculture and Philippine National Oil Company (PNOC) have recently announced a strategic collaboration aimed at transforming agricultural practices in the Philippines.

With support from the Australian Embassy, through the Australia Philippines Business Council (APBC) and the Jacinto Group, a pioneer in sustainable dining, promoting accessible, eco-conscious food solutions, ESG Australia, a member of APBC, and PNOC presented a letter of intent (LoI) on Sept. 9, 2024.

The LoI outlines their commitment to explore a memorandum of understanding (MoU) and an offtake agreement for the supply of lignite.

The partnership seeks to harness lignite's aunique properties to produce sustainable fertilizers that can reduce chemical inputs in farming, lower environmental impact and boost agricultural productivity.

This partnership represents a significant shift toward sustainability in agriculture. By focusing on lignite, a locally available resource, ESG Agriculture and PNOC aim to revolutionize fertilizer production, making farming practices more cost-efficient and environmentally sustainable.

The potential impact of this collaboration extends beyond the environment. It could significantly drive economic development in Isabela Province, where the project is based.

By reducing the country's dependence on imported fertilizers – which currently account for a large portion of its nitrogen-based fertilizer needs – this initiative could enhance local agricultural productivity.

Ares Merchants Philippines Inc. (AMPI), a leading supplier of vegetable oils, has expressed its full support for the ESG Agriculture-PNOC partnership.

AMPI Managing Director Jose Leonardo Tañada affirmed the company's commitment to initiatives that benefit the agricultural sector.

"At AMPI, we always back efforts that help lower production costs for locally produced commodities and benefit our country's farmers. We fully support sustainable projects, such as the first Philippine-produced fertilizer made from lignite," Tañada stated.

In addition to ESG Agriculture's partnership with PNOC, the company, alongside its local partner the Jacinto Group, will lead efforts to educate and support farmers in adopting sustainable farming solutions.