Eastern Petroleum unit seeks partner for ethanol project

MANILA, Philippines - Eastern Renewables and Fuels Corp., the alternative fuels development arm of Eastern Petroleum Corp. (EPC), is looking for a joint venture partner to develop 10,000 hectares of ethanol plantation.

“We are open to joint ventures. (We are open to) other investors. That’s what we’re doing,” EPC chairman Fernando Martinez told reporters over the weekend.

Martinez said they need an investor, especially when the company decides to put up an ethanol processing plant.

He said a 100,000-liter a day processing plant would require an investment of about $25 million.

But Martinez said at present, the company has started harvesting cassava in some areas in Zambales. However, he admitted that to be able to convert this venture into a viable one, “it would need 10,000 hectares.”

“We are into feedstock developement right now. You have to build feedstock to do it. And before we reach 10,000 hectares we need three years. We are in the first year. First crop, which was planted last year, is being harvested. Now we are on the second year, we started with around 300 hectares harvested. Now we are planting 1,000 hectares,” he said.

The EPC official said they are now preparing for bigger ethanol production.

“We have done complete studies and we are now in the feasibility preparation stage for the ethanol plant itself, seeing to it the financial plans will be in place,” he said.

Last year, ERFC entered into a long term contract with Guanxi Estates Corp. which calls for the exports of cassava produce of ERFC as feedstock for ethanol production at Guanxi province in China.

For every hectare, ERFC can harvest about 40,000 kilos of cassava which could produce up to 6,000 liters of ethanol.

Martinez had earlier said that ERFC is currently focusing on its exports business in China until such time that it could start supplying the local market.