MANILA, Philippines - The development of ethanol as an
energy source may be hampered this year by the looming El Niño
phenomenon which is expected to linger throughout the year, an
industry official said.
Bronzeoak Philippines director and treasurer Don Mario Dia
said if this weather disturbance occurs, the production of
ethanol will be greatly affected.
“Overall, if the phenomenon will prevail, the scarcity
of sugarcane will bring prices higher both on feedstock and
ethanol,” he said.
Dia also warned that this may also trigger a rise in the
prices of ethanol products which would, in turn, trigger an
increase in gasoline prices.
Under the biofuels law, a mix of five-percent ethanol
should be blended on all gasoline products sold in the
country.
Dia noted that the landed cost of ethanol, which includes
product, shipping and other costs, currently stands at P38 per
liter.
He said there are still measures to implement that may help
in the mitigation of the impact of the El Niño, such as more
irrigation facilities.
Dia, however, noted that irrigation facilities are not
usually considered in the investment plan for an ethanol
manufacturing plants.
“No, they do not budget for that. Our case is different
because some of our shareholders are planters,” he said.
He said Bronzeoak, however, is not affected as there
is an abundance of water resources in Negros Occidental where
the plant is located.
The government earlier mandated a minimum blend of the
biofuel on gasoline products to cut the country’s reliance on
imported oil, which accounts for more than 90 percent of the
transport sector’s requirements.
At the same time, the use of the biofuel sought to reduce
carbon emissions and promote countryside development.
However, the lack of local supply has forced many oil firms
to import their ethanol needs.
Bronzeoak Philippines is the local unit of Bronzeoak Ltd.
of the UK. The company has investments in San Carlos Bioenergy
Inc., which operates an ethanol distillery and power
cogeneration plant in Negros Occidental.
The plant has the capacity to produce between 30 million to
40 million liters of ethanol and eight megawatts of
electricity.
