Country’s Oil Firms Start 5% Biodiesel Blend

February 6, 2009 by Tsikot

Oil companies will start offering a higher biodiesel blend February 6, 2009 as mandated by the Biofuels Act of 2006.

Department of Energy (DOE) director Mario Marasigan said the National Biofuels Board (NBB) has assured of a smooth transition in the implementation of the higher biodiesel blend.

“All systems go. We do not see any problem,” Marasigan said.

The Philippines has been lagging behind the utilization of alternative fuels in Southeast Asia. Thailand, for instance, is already offering B5 or five-percent blend on their diesel products. It is also in the process of exploring the use of B10 and B20.When the biofuels law was passed three years ago, it mandated that diesel products should be blended with one-percent biodiesel. Starting today (Feb. 6), gasoline should be blended with five- percent ethanol.

There were some apprehension on the implementation of ethanol blend since there is not enough supply of ethanol in the market.

To comply with the mandate, oil firms have opted to import their ethanol requirement, mostly from Brazil.

Some oil companies have also decided to undertake a joint importation to cut on costs.

NBB, the overseer of the biofuels law, has the power to delay or reduce the blend should it deem that the requirement will not be met by the industry.

But Marasigan pointed out that “there is the law and we should follow it.”

Energy Secretary and NBB chairman Angelo Reyes said the board is way along this line of seeing to it that the policy of the government on biofuels is being implemented as envisioned. – Donnabelle Gatdula

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