Alternative fuel firm looks for more biofuel lands in Mindanao

SULTAN KUDARAT, Philippines - Eastern Renewables Fuels Corp. (ERFC) is looking for more lands in Central Mindanao where it can grow cassava for biofuel use, as it takes advantage of rising demand for clean energy. The Eastern Petroleum Corp. subsidiary is targeting to develop 5,000 hectares — the size of more than 12,000 football fields — next year, company President and Chief Executive Officer Fernando L. Martinez said on Friday. The number could go as high as 10,000 hectares, said Sidney B. Elejerio, operations manager of Eastern Renewables. The company controls 2,210 hectares of cassava plantations in Central Mindanao, mostly in Sarangani province. Biofuels — energy that comes from plants — have attracted much attention and investment because these can replace or supplement traditional and less clean petroleum-based transportation fuels. Biofuels like ethanol and biodiesel can be used in existing vehicles with little or no modification to engines and fuel systems. But biofuel feed stocks such as corn, sugarcane and soybeans are also key sources of food for millions of people. Biofuel critics say production of crops for bioenergy uses have displaced other food-related crops, leading to rising food prices. Data from Bureau of Soils and Water Management and Bureau of Agricultural Research showed that Sarangani has 11,691 hectares available for cassava farming alone. During a trade and investment conference here, Mr. Martinez said the company may also expand even in conflict-affected areas of Basilan. Eastern Renewables needs more drying facilities to accommodate rising cassava production. There are about 500 hectares of cassava lands, particularly in General Santos City and Sarangani province, due for harvest around this time, Mr. Elejerio said. In an interview, Marriz B. Agbon, president of the Philippine Agricultural Development and Commercial Corp., said the Agriculture department is in talks with Eastern Renewables to build a cassava post-harvest drying facility. Mr. Agbon, also the program manager of the agency’s biofuels feedstock program, said they have yet to determine the cost and design of the facility. "[The drying facility] could encourage more landowners to plant cassava," he told BusinessWorld. He added that two Mindanao-based companies are setting up distilleries using cassava as feedstock. Mr. Agbon said the government is committed in meeting the 1.2-million hectare requirement of its biofuel program, even as he said the use of crops for food should be prioritized over biofuel. Under the program, the Agriculture department will provide 700,000 hectares for biofuel use, while the Agrarian Reform department will provide 500,000 hectares. Only unused, nonirrigated lands will be planted with biofuel feedstock, Mr. Agbon said. The Philippines has about three to four million unused lands suitable to crops. "The challenge is how to consolidate those lands," Mr. Agbon said, adding that investors are ready to put in their money in biofuel ventures. At the conference, some delegates expressed concerns about the government’s biofuel program. Some said the absence of safety nets to ensure only unused lands would be used could worsen the present rice shortage problem. But Mr. Martinez said the worries are misplaced, saying rice lands are not used for biofuel feedstock.