Ethanol-import plan bucked

FEARING losses, the Ethanol Producers Association of the Philippines (Epap) expressed concern over a plan to import ethanol, especially since the plan only hinges on the certification of a local producer.

“We are very concerned about the need to import; we have to live by the spirit of the law,” said Tetchie Capellan, Epap executive director.

She said this need to import is based on the Department of Energy’s (DOE) failure to certify Roxol Bioenergy of Roxas Holdings Inc. as part of the local ethanol producers.

“If Roxol is not certified, the implication of not certifying Roxol would make oil companies resort to importing ethanol and not sourcing their supply from Roxol,” she added.

Capellan said Roxol has to be certified as a local supplier; otherwise, losses would be incurred by Roxas and other producers as another ethanol plant plans to begin commercial operations next year.

Capellan said Roxol Bioenergy targets monthly production of 3 million liters at its plant in La Carlota City from February 2010. It is the second- biggest refiner of raw sugar, taking 20 percent of national production. Ethanol in the Philippines is derived from sugarcane.

She noted that Roxas’s ethanol plant will also bring total local production to 66 million liters, with San Carlos Bioenergy producing 30 million liters and Leyte Agricultural Corp. contributing 9 million liters.

Capellan said the Philippine sugar industry could help the government achieve energy independence with about 433,700 hectares planted to sugar cane. “A more favorable investment climate for ethanol producers can drive and enable sugar millers to harness their combined capacity to produce 1.7 billion liters of ethanol annually.”

Under the biofuels law, all gasoline sold in the country has to be blended with 5 percent of ethanol, with the mandate translating into 220 million liters of ethanol this year.

“In light of the local ethanol production and the global trend to achieve energy security and mitigate climate change, the bioethanol industry in the Philippines needs stronger government support to replicate the San Carlos plant in several sites throughout the country,” said Capellan.

She said the sale of E10 in gas stations has made consumers more aware of the benefits of ethanol to air quality, public health and the environment.

“Ethanol producers are confident that the availability of feedstock from the sugar industry, as well as the existing distilleries operating in the country, allow prospective ethanol producers to supply all local requirements,” added Capellan.

Source: businessmirrior