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By Euan Paulo C. Añonuevo, Reporter
DESPITE a flurry of investment proposals from
various groups, the Philippines’ refining capacity may fail to
meet the mandated blending of the alternative fuel, thus raising the
prospect of importing the country’s requirements, a Department of
Energy official said.
“We only expect two to three plants to be put
up this year. Because of this, our ethanol supply locally will not
be sufficient and we may have to import ethanol,” Mario C.
Marasigan, Energy Utilization Management Bureau director, said.
The prospect of importing to fill the gap of
domestic supply would go against the spirit of the law, which is
aimed at slashing the country’s oil import bill. Last year, the
country’s oil import bill rose by 10 percent to $8.8 billion from
$8 billion in 2006, as companies purchased more fuel abroad on
expectations of a further spike in prices.
Under the Biofuels Act of 2006, gasoline should
have a mix of five percent locally-sourced ethanol in 2009. This
will then be hiked to 10 percent in 2011.
For the initial year, the country’s demand for
ethanol is seen to reach 300 million liters, requiring more than 10
ethanol processing plants.
To date, only the facilities being put up by
Bronzeoak Philippines Inc.’s San Carlos Bioenergy Inc. and South
Bukidnon Bioenergy Inc., as well as TAO Corporation’s Leyte Agri
Corp. are expected to come on line by next year.
Because of concerns about the country’s
ability to supply its ethanol requirements, a number of oil
companies have already conceded that they may have to import the
alternative fuel, to the detriment of the sunrise biofuel industry.
Marasigan said that the department is still
waiting for other investors that had committed to put up ethanol
plants within the next two years.
He had disclosed that a number of foreign firms,
through tie-ups with local companies, are planning to construct up
to 15 biofuel refining facilities in the country worth P20 billion,
10 of which are proposed ethanol plants.
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