RP bioethanol producer suspends P8-B expansion projects
Volatile prices in the world market pushed one of the countryâs producers of bioethanolâa type of alcohol blended with gasoline which reduces harmful vehicle emissionsâto suspend its P8-billion projects. âWe still have projects in the pipeline but theyâre on hold now. For bioethanol, we donât know how the price rolls. We cannot predict the international economic movement, and unless there are changes (in the world price), expansion projects will remain suspended," Bronzeoak Philippines Managing Director Jose Maria P. Zabaleta Jr. said. Zabaleta added the companyâs partner in Brazilâthe worldâs second largest producer of bioethanolâis not too keen on expanding production in the country since price swings from the Brazilian to the world market have been evident in recent months. âPrice volatility is our main problem. The Philippine bioethanol industry is still in its infancy. We cannot compete with global leaders. Oil companies prefer to import rather buy local bioethanol," he said. The company produces 30 to 35 million liters of bioethanol annually versus the 350-million-liter national requirement. Government approval on feed-in tariffs is expected in two months, Zabaleta said, only at which time the companyâs three suspended projects in the country could be revived. Feed-in tariff is the premium paid by a utility to its consumers for excess power generated by alternative energy system. Feed-in tariffs are used by the government as incentive for consumers to adopt newer, cleaner, renewable energy sources. Bioethanolâwhich is processed from sugarcane or starchâis a renewable energy resource that produces little carbon monoxide and thus reduces harmful emissions from vehicles. Zabaleta also expressed concern that farmers might be discouraged to plant because of the current price downtrend. The government is banking on the product to reduce the countryâs dependence on imported petroleum. Bronzeoak, through San Carlos Bionergy, Inc., is Petron Corp.âs supplier for its E10 Premium oil brand. Under the biofuels law, all gasoline sold in the country would contain five-percent bioethanol. -- Carmela Lapeña/Nikka Corsino/OMG, GMANews.TV