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Ethanol production in the country is expected to grow next year with the commissioning of new plants in Roxas province.

Tetchi Capellan, director of the Ethanol Producers Association of the Philippines (EPAP) said the Roxol Bioenergy of Roxas Holdings Inc., will begin trade operations in 2010.

“Roxol Bioenergy of Roxas Holdings Inc. is expected to produce three million liters monthly from its plant in La Carlota City in February 2010,” Capellan said.

According to Capellan, “Roxas Holdings Inc. is the second most extensive refiner of raw sugar in the country, taking 20 percent of national production. The initial output from Roxol Bioenergy of about 27 million liters will contribute to the 2010 ethanol inventory and likewise bring the total local production to 66 million liters, with San Carlos Bioenergy producing 30 million liters, while Leyte Agricultural Corporation contributing nine million liters.”

Ethanol in Philippine is derived from sugarcane cultivation and production.

She added that the Food and Agriculture Organization (FAO) of the United Nations approximates that about 70 liters of ethanol can be produced from a ton of sugarcane. In terms of hectare, about 4550 liters are produced for every hectare planted in sugarcane.

Capellan said there are approximately 433,700 hectares of land planted with sugarcane in the country, adding that a more favorable investment climate for ethanol producers can drive and allow sugar millers to harness their combined capacity to produce 1.7 billion liters of ethanol.

The Biofuels Law directs that all gasoline sold in the country be blended with 5 percent of ethanol. This year, the mandate translates into 220 million liters of ethanol.

Also, Capellan said EPAP is pushing for an immediate review and shift of the current policy on ethanol trade.

Capellan said that “in light of the local ethanol production as well as the global direction to achieve energy security and mitigate climate change, the bioethanol industry in the Philippines needs stronger government support to replicate the San Carlos plant in several sites throughout the country in support of Philippines business.”

Moreover, Capellan noted that more ethanol plants will be invested in in the coming years when companies are interested in investing in a stable market.

”Today, the presence of E10 in gas stations already made consumers more knowledgeable of the benefits of ethanol to air quality, public health, and the environment. But a stronger push from government will predictably increase the number of off-take agreements and consequently enable ethanol production in the rural areas to scale up and expand to a level that matches market demand,” she added.

Ethanol manufacturers are confident that the availability of feedstock from the sugar industry, as well as the existing distilleries operating in the country, allow prospective ethanol producers to supply all local requirements.

Currently, oil companies such as Petron Corp., Shell Philippines, Chevron Philippines, Flying V, Eastern Petroleum, Seaoil Philippines, Phoenix Petroleum and PTT Philippines are offering E10 in their stations as mandated by the law.

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