Sugar millers urged to invest more in power co-generation
The Sugar Regulatory Administration is urging players in the industry to invest more in power co-generation and production of bioethanol from sugarcane amid volatile sugar prices in the world market.
MANILA, Philippines - The Sugar Regulatory Administration (SRA) is urging players in the industry to invest more in power co-generation and production of bioethanol from sugarcane amid volatile sugar prices in the world market.
SRA policy and planning manager Rosemarie Gumera said the agency is strengthening its product diversification by encouraging stakeholders to invest more in the manufacture of bioethanol.
Bioethanol is produced using molasses, a by-product of the sugar refining process.
“We need more products from sugarcane that would benefit our farmers so that in case of sudden drop in sugar prices, they would have a fallback industry,” Gumera told reporters.
Gumera said two additional bio-ethanol plants, Cavite Biofuels Producer and Progreen Agricorp Inc. (former Emperador Distillery), would operate next year with over 60 million liters of combined capacity.
Thus, the industry will bring total bio-ethanol production capacity of the existing eight facilities to up to 340 million liters, which is around 50 percent of the mandatory requirement.
Last year, plants had only 282 million liters capacity versus the 522 million-liter demand, allowing oil companies to import much cheaper ethanol compared to locally-produced.
Based on the Department of Energy’s projection, bioethanol requirement for 2017 is around 570 million liters.
Gumera also countered statements of oil companies they should just be allowed to import all ethanol requirement to decrease prices of gasoline fuel and power.
“That’s not the intention of the bioethanol program. The intention is to develop the local industry and reduce the fossil fuel importation,” Gumera said.
The agency is upbeat that more investments will continue to pour in, allowing more plants that can produce and supply the 100 percent mandated requirement by 2020.
Gumera, however, emphasized the agency’s priority is still sugar mills for food consumption.
SRA also continues to review policies on price reference formula that could neutralize and stabilize the prices of molasses.
Several companies in the Philippines such as the San Carlos Bioenergy Inc. and Roxol Bioenergy Corp., both units of listed sugar miller Roxas Holdings Inc. are already strong producers of bioethanol.
Increase in energy production would translate to lower electricity and fuel cost, as well as added value to local farms.
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