Ethanol imports to hit 320-M liter mark

MANILA, Philippines – If the 10-percent ethanol blend to gasoline will be implemented based on the Biofuels Law’s timeline around February next year, the level of importation would reach as much as 320 million liters, the Department of Energy (DoE) has indicated.

Based on latest assessment, DoE director Zenaida Y. Monsada noted that local producers may only be able to pull off up to 80 million liters of output commitment by next year.

She further noted that discussions are ongoing with Congress as to how the government would be able to move forward with the biofuels policy’s implementation – if the course to be taken will be to move ahead with the 10 percent blend (E10) or they may opt to waive the proposed higher mix given scant local supply and stay at 5.0-percent blend in the interim.

“The level of importation is subject to local availability. We are also looking at it because we might just be shifting to other types of fuel importation,” Monsada stressed. Current figures, she said, is granting that San Carlos Bioenergy will have increased production of 40 million liters.

The other intent of possibly bringing down prices via the country’s biofuels program more or less ended in a frustrating outcome, as the DoE official affirmed that ethanol prices are currently higher than conventional gasoline products.

For the local ethanol producers, they have been seeking government’s action on prospective tariff protection. But the Department of Energy (DoE) and other concerned agencies made a counter-offer via a viable local pricing index.

The energy department hinted that they are also evaluating the situation especially at this point when sugar prices are hitting new peaks, although it sees the situation as just temporary in nature.

Apart from the issue of ethanol importation, Monsada emphasized that studies are also being done if there is a need to fortify the law so the feedstock farmers for biofuels could be granted more ‘rewarding’ and comprehensive perks.

“We are looking at it if there’s need for amendments in the Biofuels Law. Part of the discussion is on the support for farm workers,” the energy official has noted.

She stressed that with the recurring uptrend in sugar prices, the “food versus fuel debate” would thrive as a continuing concern, and “not only with sugar, it may also apply to other feedstocks, like cassava.”

source: mb