MANILA, Philippines - About P80 billion worth of ethanol-related projects are now in the pipeline, a ranking National Biofuels Board (NBB) official said.
NBB vice chairman and Sugar Regulatory Administration (SRA) administrator Rafael Coscolluela told reporters that there are about 20 applications for ethanol projects lodged at the NBB.
He said each project may entail an investment of about P4 billion.
“These are under study and in various stages of documentations,” the NBB official said.
According to Coscolluela, most of the proposed projects are being undertaken through joint ventures between foreign and local investors.
The NBB official, however, declined to give the identities of the proponents as the projects’ applications are still being reviewed and processed.
Earlier, the Department of Energy (DOE) said there have received about 15 proposals to put up various biofuel processing facilities.
DOE director Mario Marasigan said these projects would raise some P20 billion in new investments for the biofuel industry.
The government is optimistic it would be able to encourage more investors to pour in much-needed capital in the biofuels industry after the passage of the Biofuels Act in 2006.
The biofuels law specifically opens doors for more investments as it mandates a specific blend in diesel and gasoline products.
But it was noted that the recent developments in fuel prices have affected potential investments in alternative fuels.
Coscolluela noted that some investors have been taken aback by the prevailing low fuel prices. “Ethanol prices are still low at around P26 per liter,” he said.
It would be noted that gasoline prices have been selling at over P30 per liter at retail stations.
Coscolluela, however, said they continue to convince investors as fuel prices are expected to stabilize soon.
He said by the time they finish the construction of their ethanol processing facilities, the prices of fuel may have already stabilized.
“When they are finished with their plants in one or two years, prices would have stabilized already,” he added.
He said there are also other forms of ethanol feedstock that could be developed, such as molasses.
He noted that molasses-based ethanol plants are easier and cheaper to construct. – Donnabelle Gatdula