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LOCAL supply of ethanol to feed demand for the mandated blend of the
alternative fuel at the pump is likely to be available only two
years from now, an official from Chevron (Caltex) Philippines, Inc.
said.
Whitman Matiao, Chevron products technology
regional manager, said it may take a while for local supply to feed
the total demand for ethanol as investors remain hesitant about
entering the sunrise biofuels industry.
“They are still on a wait and see attitude.
That’s why it may take a while. Although there are some
starting... but not really in that full swing. And starting a
distillery plant is not that fast. It would take two years or
more,” he said.
The Chevron official said that potential
investors are concerned about the present ownership structure
allowed by the Constitution that limits foreign ownership to a
minimum stake.
Depite the limited supply of the alternative
fuel, Chevron is not disposed to putting up its own ethanol
production facility.
Instead, Whitman said the company would source
its ethanol supply from Brazil until local production meets their
requirements.
The company on Monday launched its 10 percent
ethanol-blended gasoline (E10) ahead of the mandated minimum blend
of the alternative fuel by 2009 under the Biofuels Act of 2006.
“We have 22 stations (with E10), which will
hopefully grow to 35 stations by the end of the year. We’re
checking each station for the compatibility of all the materials to
be used with E10. So we’d be adding more and more stations as we
go, which will go up to around 400 stations by February 2009,”
Dominic Timbancaya, Chevron brand manager, said.
In compliance with the Biofuels Law, Chevron
will be shell out over $20 million in the next two years to upgrade
its facilities, Timbancaya said.
The law calls for a five percent blend of
ethanol with gasoline products starting next year before doubling
this mix by 2011.
Ethanol, as an alternative fuel, is relatively
cleaner than its fossil fuel-based counterpart, gasoline. As of late
October, local production of ethanol is priced at roughly about
P43.00 to P45.00 per liter.
Despite this, local supply has been limited with
only a single ethanol plant supplying the requirements of Petron
Corp. Other oil companies have gone the way of Chevron.
Under the Biofuels Law, feedstock used for
biofuels should be sourced locally.
Industry officials had said that land titling
issues and distant plantations have put a damper on investments in
the biofuels industry.
-- Euan Paulo C. Añonuevo
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