Oil companies are set today to increase the biofuel components of the fuel they sell at the pump in order to comply with the Philippine Biofuels Act of 2006.
This implementation of an increase in biofuel mix is covered by Circular DC2009–02-0002 of the Department of Energy. The said circular approves a 5% mixture in bioethanol with gasoline and 2% biodiesel with petrol diesel at the pumps. The decision to increase was decided upon by the National Biofuels Board(NBB) on January 19, 2009.
As stated in the Biofuel Law of the Philippines, two years after the implementation of the bill (June 8, 2007), biodiesel and bioethanol mixture being sold at the pumps should contain a mixture of 2% and 5% respectively.
This can be found in Section 5 of the Biofuels Bill which states:
5.1 Bioethanol
a. Within two years from the effectivity of the Act, at least five percent bioethanol shall comprise the annual total volume of gasoline fuel actually sold and distributed by each and every oil company in the country, subject to the requirement that all bioethanol blended gasoline shall contain a minimum five percent (5%) bioethanol fuel by volume: Provided that the bioethanol blend conforms to the PNS….
5.2 Biodiesel
b. Within two years from the effectivity of the Act, the NBB is empowered to determine the feasibility and thereafter recommend to DOE to mandate a minimum 2% blend of biodiesel by volume which may be increased after taking into account considerations including, but not limited to, domestic supply and availability of locally-sourced biodiesel component
Since there is not enough bioethanol yet that can be sourced locally, Philippine oil companies are allowed to import their bioethanol in order to comply with the biofuel law. Brazil is the current source of bioethanol for the oil companies. To save on cost, some oil companies are jointly importing their bioethanol.
Currently there are only the San Carlos Bioenergy and the Leyte Agri Corp who can supply bioethanol to the local oil companies. Both distilleries however can only produce 19% of the 208 Million liter requirement of the Philippines.
San Carlos Bioenergy however has stated that they are not ramping up their bioethanol production for lack of long term contracts to buy their bioethanol from the oil companies brought about by the world wide credit crunch affecting the oil companies. The long term contracts would have been used to secure debt to increase output.
In other bioethanol industry news, the Archdiocese of Cagayan de Oro has moved to block the construction of a P2.1 billion bioethanol distillery in their area. The proposed bioethanol plant of Alsons Consolidated Resources Inc. (ACR) is said to be built on top of the City’s Watershed area, hence the opposition. The said plant was designed to output 100,000 li/day of bioethanol.
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Category: Biodiesel, Bioethanol, Law
