|
Feature
|
|
Written by Sabrina Deparine
|
|
Monday, 12 October 2009 00:00 |
|
Page views: 894 |
The future of ethanol in the Philippines looks bright after all in spite of the various bad publicities that the E10 gasoline has been receiving in the past few weeks.
 Based on the forecasts made by the Ethanol Producers Association of the Philippines (EPAP), the local ethanol supply is expected to reach as much as 83 million liters by 2010. This figure is more than 50% higher than the government estimate of only 50 million liters.
According to EPAP Director Tetchi Capellan, the supply is expected to come from local ethanol producers like San Carlos Bioenergy Inc. which can produce 40 million liters per year; Leyte Agri Corp. which manufactures 10 million liters per year; and Roxol Bioenergy which has a capacity to produce 33 million liters per year. Another producer, Cavite Biofuel Producers, Inc is expected to start commercial operations by 2011.
EPAP’s move to clarify the estimated ethanol supply for 2010 is commendable. It is important to make the right forecast on the supply of ethanol for next year because this will form the basis for the volume of imports that the National Biofuels Board (NBB) will permit in order to comply with the mandate of the Biofuels Act of 2006. This, in an indirect way, gives protection to local ethanol producers.
By 2010, the Philippine market will still be offering 10% ethanol-blended gasoline (E10) alongside regular gasoline. Initial estimate of the country’s requirement for 2010 is at around 219 million liters. Following the estimate given by EPAP, the NBB should only allow an import volume of at most 147 million liters of ethanol. However, if the NBB follows the estimate given by the government, they will allow an import volume of as much as 180 million liters, to the detriment of locally produced ethanol, especially since oil companies may prefer to purchase imported ethanol rather than local ethanol if the price difference is insignificant.
EPAP is intensifying its campaign to push the government to immediately review and make the necessary changes in the policies governing ethanol trade. Through transparent, proactive and fair policies, the government can give the necessary support that will ensure a stable and strong local ethanol industry.
|
Share this Article.
|
Subscribe
