Energy Dept plans to import biofuel to meet demand

The Energy Department plans to "adopt" temporary importation of bioethanol next year to meet the full implementation of the Biofuels Law that entails the 10-percent mix of biofuels in gasoline. "It is an unfortunate reality on our part that the bioethanol industry is not strong enough to timely respond [to] the requirements of the energy market," Energy Secretary Jose Rene Almendras said in a speech before delegates of the 28th ASEAN Ministers of Energy Meeting in Vietnam. "The Philippines is therefore planning to adopt a temporary scheme of bioethanol importation until the domestic supply becomes stable," Almendras said in his speech copies of which were released to the media over the weekend. The Biofuels Law of 2006 provides that oil companies are allowed to import bioethanol if there is a shortage of the locally produced commodity, "but only to the extent of the shortage as may be determined by the National Biofuels Board." The energy chief said the government is not veering off the goal of energy independence by allowing imported bioethanol to fill up the oil industry's requirements. "We assure that the Philippines will fortify domestic bioethanol production alongside provisional importation by providing incentives to feedstock farmers and stimulating support for intensification of infrastructure investments. We are resolute on reducing dependency on imported sources of energy. We are not going to waver," Almendras said. The country's program on biofuels "is not flawless" as supply problems crept up during the third year of the law's implementation, he said. "Optimism is not a sin but we have to face the realism of our state of affairs, accept facts as they are being presented and then analyze, in full honesty, the situation so that we can accurately respond to the actual needs of our constituents," he said. Earlier, the Ethanol Producers Association of the Philippines reported that only 80 million liters of bioethanol would be produced this year against demand that was expected at around 240 million liters. Shell country chairman Ed Chua said if there is not enough local supply to comply with the Biofuels Law, oil companies should import bioethanol. "If local supply is available and competitively priced then the priority should be local supply. Also, it's easier because if it's local supply you can get it at a shorter lead-time. But the issue there will be availability and competitive pricing," Chua said. —JE/VS, GMANews.TV