Energy draws flak from ethanol producers

The Energy Department is drawing flak from local ethanol producers because of its recommendation to lift the import ban on ethanol and lower the blending ratios prescribed under the Biofuels Law. “Reversing the Biofuels Law is not the answer to the ethanol supply gap," said Tetchi Cruz-Capellan, executive director of the Ethanol Producers Association of the Philippines. There were earlier claims that the Biofuels Law might have to be amended. The producers earlier reported that they could only come up with 80 million liters of local ethanol this year against demand the was expected at 240 million liters. Energy director Zenaida Monsada said one proposal would be to remove the import ban on ethanol and reduce the 10-percent blending mandate under the law. “What happens if the law is amended, If the import restrictions are lifted, without regard to existing producers? How will local business and foreign funders recover the billions invested to these ethanol plants?" The San Carlos Bio-energy, ROXOL Bio-energy, and Leyte Agricultural are currently producing alternative fuels derived from sugar. Three more are expected to come on-stream next year: the Green Futures Innovation in Isabela, Pampanga Biofuels in Floridablanca, and Cavite Biofuels in Magallanes. “All these entities have foreign equity partners and creditors," the group said in a statement. Lifting the import ban diminishes the energy independence and climate-change mitigation agenda of the country. “Only the consistent and transparent implementation of the Biofuels Act will increase investments, build more ethanol plants, and supply bigger volumes of ethanol," the ethanol producers said. They urged the department to strictly enforce the blending requirements and penalize those who would violate the law. “By doing this, we create a more favorable climate for investments and encourage foreign capital to build the infrastructure for clean fuel in the country," they said. The producers said government plays a critical role in building supply capacity, noting that the world's largest producer of ethanol, Brazil, took 35 years to build its industry. “Local ethanol production, on the other hand, is in its infantile stage. But with strong support, the industry will grow," it said. —Jesse Edep/VS, GMANews.TV