Ethanol makers plan more facilities as demand grows

Local  ethanol manufacturers will put up more processing facilities in the country to meet growing demand among motorists.

Bronzeoak Philippines Inc. president and coo Jose Maria Zabaleta said they will put up more ethanol processing plants to meet the five percent requirement of the Biofuels Act.

He said they would be constructing two processing plants in Luzon and in the Visayas each with a capacity of between 30-50 million liters. 

Each ethanol processing plant, he said, would need a capital of about P3 billion to P4 billion.

Bronzeoak, a British energy firm, is building the P1.5-billion San Carlos Bioenergy Inc. (SCBI) facility composed of an integrated sugar mill, cogeneration plant and distillery complex for ethanol production in San Carlos, Negros Occidental.

It is capable of producing up to 120,000 liters of anhydrous ethanol (99.5 percent purity) daily and likewise produce nine megawatts (MW) of electricity. It will be fueled entirely from bio mass resources, particularly sugarcane which is grown in the area. 

SCBI will supply the ethanol requirements of semi-government Petron Corp. as it becomes fully operational by January 2009 in time for the implementation of the five percent blend in ethanol on gasoline products.

“The plant will be operational next year in time for the implementation of the law. We hope we can start quick,” Zabaleta said.  

“The offer price of ethanol could result to more than P2 per liter reduction if the ethanol will be produced locally since there will be no freight cost, Zabaleta said.

Petron Corp. recently launched an ethanol-blended gasoline which is P2 per liter lower than regular gasoline. 

“The price of oil is $135 per barrel while the price of ethanol is 30 percent lower.  This is the reason why we need to implement the Biofuels Law so we can offer lower oil prices,” he said.

Since there is no available ethanol in the local market yet, Petron has to source its ethanol requirement from other countries like Brazil.

Earlier, Bronzeoak said it is committed to construct two power plants in the Visayas as part of its commitment to help the Philippines in promoting the development of renewable sources of energy.

It said it will put up the 25-MW Boao bioenergy project in Cebu, and the two-MW Panay bioenergy project in Antique. The company has also committed two other power facilities: the 30-MW Talisay bioenergy and the 50-MW Victorias bioenergy project.