Foreign investors back out of ethanol project

BACOLOD CITY — Foreign investors have decided to back out of the ethanol project in Negros Occidental reportedly after US President George W. Bush announced that the United States government will focus on the development of bio-fuels to address the spiraling world oil prices.

Negros Occidental Rep. Ignacio Arroyo said foreign businesses which have previously expressed interest in the ethanol project have decided to concentrate on the US after Bush’s pronouncement.

Bush’s energy proposals for the fiscal year that begins in October call for $289 million for hydrogen fuel technology, $54 million for coal plants that would capture the carbon dioxide they produce, $148 million for solar power, $44 million for wind power, and $150 million for ethanol from cellulose.

Arroyo met with several planter groups here to solicit their commitment for the supply of sugarcane in case the ethanol project still pushes through despite the setback.

Arroyo said he is confident that the project will push through because aside from the planters’ commitment, there are several local investors who have signified their continued support to the project.

He said these local investors are just waiting for the final approval of the Ethanol Bill which he co-authored with Bukidnon Rep. Miguel Zubiri and Jerome Paras of Negros Oriental.

Under the Ethanol Bill, which is up for third and final reading, oil companies in the country are required to mix five percent ethanol in the first 10 years of production to their fuel products.