|
THE Philippines dropped out of a list of attractive
locations for producing ethanol, according to a study by Ernst and
Young UK.
From the 14th spot during the
previous study, the Philippines slipped out of the list altogether
after announcing plans to import ethanol from Brazil and Thailand,
which drove down investor interest in the fledgling domestic
industry.
Despite a law mandating a
5-percent blend of ethanol in petroleum products starting next year,
only one group has ventured into local ethanol production.
Brazil topped the ethanol list,
followed by the US and Canada.
The Philippines, however,
maintained its ranking as the 11th top place to produce biodiesel, a
list that Brazil also topped, followed closely by the US. Also
gunning as top locations for biodiesel production are France, Spain,
Germany, Thailand, China, Canada, Italy, the United Kingdom and
Colombia.
India and Indonesia ranked behind
the Philippines because of “the absence of sufficient forward
momentum from government incentives.”
Brazil’s high ranking owed to
its success in the introduction of a 2-percent blend of alternative
fuel and the government’s decision to fast-track into a 5-percent
mandate to 2010 from 2013 earlier.
The report ranks country
attractiveness based on market regulatory risk, supporting
infrastructure, access to finance, off-take incentives, tax climate,
domestic and export market growth potential, and project size.
Overall, the Philippines ranked
13th in the Biofuels Country Attractiveness Index. Brazil topped the
list, followed by the US and France.
Vincent Perez, a former Energy
secretary who advises President Arroyo on the matter, said the
country’s ranking is a “confidence booster to current and
interested investors in the local biofuels industry.”
Earlier, Perez’ Merritt
Partners reported that domestic demand for biodiesel is expected to
reach 151 million liters next year from the current 70 million
liters.
The report said the current
biodiesel supply, which is mainly sourced from coconut, is
sufficient to cover the mandated blend of 2 percent next year.
For ethanol, Merritt Partners
forecast a promising domestic market of about 309 million liters per
year by next year. This will increase to 664 million liters by 2011
and 713 million liters by 2013, it said.
--Euan Paulo C. Añonuevo
|
