The ethanol issue and the new Philsutech board

Eduardo Concepcion of Passi Sugar Central of Iloilo was elected chairman of the new Philsutech board of directors. And it became evident during the last day of the sugar technologists’ meet in Cebu City last weekend that the new board will be challenged by the need to develop alternative energy sources.

Agriculture Secretary Domingo Panganiban said the government would extend whatever assistance is needed by the private sector to develop the bioethanol industry. But the initiative must be led by the private sector.

Panganiban admitted eyeing areas beyond Negros Occidental for additional sugarcane sources that will feed the bioethanol plants that will emerge as the country devotes its energies and resources to become self-sufficient in sustainable alternatives to fossil fuel.

That was the same message from Sugar Administrator James Ledesma: that the government has already pinpointed areas where sugarcane may be grown to feed the bioethanol plants as well as possibly pave the way for co-generation, the excess power of which will be sold to the National Power Corp.

Later, Ledesma told mediamen that the government is eyeing such areas in Sarangani and Bukidnon and other hitherto underdeveloped vacant lands in other provinces.

But the underlying theme of the convention was what to do about the increasing oil prices. Everybody seems to agree that the only way to solve the problem of our dependency on fossil fuel from abroad was either to develop or explore our own alternative energy sources.

And, of course, other than geothermal power, our other sustainable power source is sugarcane.

It’s easier said than done. And Ledesma pointed out the dilemma of sugar producers — food security or branch out to energy production.

That, both Ledesma and Panganiban pointed out, was what the top government and private sector planners have crafted: a strategy that is anchored on a realistic evaluation of realities, for Negros Island to remain the bastion of sugar manufacturing and the possibility of other areas producing sugarcane for bioethanol.

Besides, as earlier pointed out, despite the promise of ethanol as a solution to the oversupply problem, sugar producers have not scrambled to join the alternative energy project. As a matter of fact, until its inauguration by President Arroyo, the sugarcane planters in the area have yet to signify their commitment to sell their sugarcane to the San Carlos bioethanol plant put up by investors led by Jose Maria Zabaleta.

The challenge is tough for the Philsutech officials. They are Luis Maril Zabaliauregui, Imelda Magabilen, Raymond Gaston, Jose Luis Tongoy, Reynaldo Bandolon, Dindo Nicolas, Concepcion and David Villanueva, Jose Frange, and Archimedes Amarra.

A hint of cautious hesitance insofar as bioethanol is concerned may be gleaned from George Zubiri, head of the Bukidnon Planters Association. When asked by Western Visayas mediamen about the Busco ethanol production program. Zubiri said, "It has been talked about, but nothing substantive has been discussed yet."

But with oil prices zooming ahead, there is just no alternative but for sugar producers to discard their timidity and invest in bioethanol, the best assurance that they can survive beyond 2010.

The trend is irreversible. The only things to be discussed are the nitty gritty arrangements. But with the government lowering the tariff on ethanol to only one percent, three independent firms, aside from Petron, have already placed orders for ethanol from Brazil as they are readying a 10 percent blend, much higher than what is proposed by the bill which is only a six percent blend for the first few years.

There was a sense of urgency in the proceedings — and the need to cut down expenses. The latest news report indicated that oil prices have soared once more. And on everybody’s lips were speculations regarding the implications, especially in terms of production inputs. And, even if they did not discuss it extensively, these would impact soon on redistricting and the long-range hauling of sugarcane to mills, among other things.

Growing appeal of ‘casla’

Presidential Assistant Lito Coscolluela indicated the resistance among Negrense producers to the rapid development of the bioethanol project.

That’s why it surprised many when Coscolluela batted for the propagation of Jatropha "casla" trees during the Regional Development Council meet at the Mambukal Summer Resort last weekend. The plant’s oil-bearing seeds can be converted into biodiesel.

Coscolluela emphasized that studies show that Jatropha trees can provide cleaner energy in two years’ time. Another advantage is that the physic nut, as it is sometimes called, needs little water or nurturing.

Negros Occidental Gov. Joseph Marañon responded that the provincial government has appropriated funds to plant one million trees as part of its reforestation program.

Coscolluela, on the other hand, said ethanol from sugarcane remains a major focus of the search for alternative fuels as with coco-diesel and biodiesel from "casla."

Citing studied by D1 Oils Asia Pacific Inc., Coscolluela said Jatropha seeds could be refined in a facility similar to an abandoned container. It can churn out 24,000 liters per day or 8,000 metric tons per annum.

In sum, the government strategy calls for putting its alternative fuel program in more than just one basket. In short, it is hedging just in case the sugar growers continue stonewalling on the bioethanol issue.

Sugbuak before Philsutech

The issue on the division of Cebu into several provinces was brought to the attention of Philippine Sugar Technologists members when Cebu Gov. Gwendolyn Garcia delivered her welcome address last Thursday.

She emphasized that she was doing so for a united and undivided Cebu. That, however, was done sans emotional ferocity, which characterized the verbal imbroglio the previous Tuesday.

That day, Msgr. Achilles Dakay, archdiocesan media liaison officer, told Cebu journalists that Cebu Archbishop Ricardo Cardinal Vidal is poised to issue a more informative and bolder pastoral letter against the plan to divide Cebu into several provinces.

Dakay stressed that the diocese will soon come up with its survey of parishes, which will show that an overwhelming majority of parishioners oppose the move.

Reps. Simeon Kintanar (second district), Antonio Yapha (third district) and Clavel Martinez (fourth district) propose to create the provinces of Cebu del Norte, Occidental Cebu, and Cebu del Sur.

Reps. Antonio Cuenco, Raul del Mar, Eduardo Gullas and Ramon Durano oppose the move.

Cebu City Mayor Tomas Osmeña suspects that Speaker Jose de Venecia may be helping the House local government committee in not holding a hearing in Cebu. That raises doubts as to the agenda of Congress in pushing for Charter change.

By accenting the need for a united Cebu during the Philsutech convention, Gov. Garcia virtually declared that Cebu’s welcome of future conventions might not be as warm and coordinated as it is now.

Expect more fireworks in the days ahead.