Bioethanol supply gap to widen next year

The Philippines’ bioethanol supply deficit will widen further as the government moves towards full implementation of the Biofuels Act next year, according to the agency tasked with monitoring the sector.

Rosemarie Gumera, an official of the National Biofuels Board (NBB), said the country’s need for imported bioethanol would increase this year since locally made supply remains incapable of meeting domestic demand.

For this year, the country needs 219 million liters of bioethanol as against the locally available supply of 77.8 million liters, for a deficit of 141.2 million liters.

Last year, the country required about 208 million liters of bioethanol, but domestic supply stood at only 39 million liters. The Philippines imported from Thailand, the Netherlands and Brazil to make up for the shortfall.

Under the law, the government requires a 5 percent mix of bioethanol for every liter of gasoline. But this blend will be raised to 10 percent in 2011.

Under the Philippine Energy Plan for 2007 to 2014, the country’s bioethanol requirement will hit 461 million liters in 2011. Gumera said oil companies by then would be prohibited from importing their bioethanol requirements.

“This is why the Board has to ask Congress to amend the law, so that oil companies will not be penalized when they decide to import bioethanol next year since the supply has yet to meet the projected demand,” the NBB official said.

The country has 17 bioethanol projects in the pipeline for 2009 to 2012.

Among the latest additions to this list are Green Future Innovation—which will put up its sugarcane plant in San Mariano, Isabela with a rated capacity of 50 million liters a year—and Cavite Biofuels Producers Inc.—which would likewise use sugarcane as its feedstock for a facility that would have a rated capacity of 37.5 million liters. Both firms are expected to be fully operational in 2012.

For a 30-million liter bioethanol rated capacity, an investor needs at least P2 billion. In the event that it would be a cogeneration type of plant, investment is expected to reach up to P4 billion. –KATRINA MENNEN A. VALDEZ reporter, Manila Times