With a ready buyer in Petron Corporation and Flying V, Leyte Agri Corp’s (LAC) recently opened ethanol distillery in Ormoc City is off to a good start.
June this year Petron announced that ethanol would be mixed with their fuel sold at the pumps. It was announced that the price of fuel would come out P2 cheaper per liter.
The plant can produce about 300,000 liters of ethanol per month. Some may say that it is a far cry from the total Philippine requirement but the good news is that we are on track to sourcing our bioethanol needs locally. One area for concern is that it uses sugarcane as feedstock, which is known to have such volatile prices and could therefore affect their bottom line.
LAC invested P350 million for the facility with 50M of that going to the distillation equipment. The plant gets its feed stock from sugarcane which is taken from around 56,000 hectares of plantations found in Ormoc City.
LAC isn’t new to the ethanol business as it had been producing food-grade alcohol since 2001. Its facility produces about eight million liters of alcohol a year.
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Category: Bioethanol
