Bioethanol production can't cope with demand

MANILA, Philippines - The Philippines has to import more biothanol this year as local production still cannot cope with increasing demand for the alternative fuel, the Department of Energy (DOE) said.

Demand for bioethanol this year is expected to reach 500 million liters, of which only 100 million liters is expected to be produced locally, thus requiring the importation of around 400 million liters more.

At the opening of the first Philippine International Bioenergy Conference at the Manila Hotel yesterday, Energy Secretary Rene Almendras said the full effectivity this year of the Biofuels Act of 2006 would further raise investor interest in the biofuel sector.

At the same time, Almendras revealed that the DOE is already undertaking technical studies to further increase the mandated bioethanol blend to 20 percent.

At present, the law requires that all gasoline sold in the country should have at least 10 percent bioethanol in the mix.

The study is being undertaken with the University of the Philippines and the Technological University of the Philippines.

Likewise, Almendras said there are also ongoing talks with the Chamber of Automotive Manufacturers of the Philippines (CAMPI) for the development of “flex engine” vehicles that could use blends as high as 20 percent to 25 percent.

He pointed out that there are already vehicles capable of using up to E20 blends.

There are currently only three bioethanol producers in the country — San Carlos Bioenergy Inc., Leyte Agri Corp., and Roxol Bioenergy Corp. — which have a combined production of only 79 million liters.

Another firm, Green Futures Inc., is scheduled for commissioning by March this year and is projected to start production by May with an initial 54 million liters capacity.

Meanwhile, Agriculture Secretary Proceso Alcala assured that the expected increase for feedstock for biofuel would not compete with the country’s food supply demand.

He said that for local food sugar supply, some 400,000 hectares has been allocated, while a total of 100,000 hectares is reserved for biofuel feedstocks.