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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PTT Philippines Corp. (PTTPC), the local arm of PTT Public Ltd. Co. of Thailand, launched last January 28, 2009 its new ethanol-blended gasoline, Performa 95+.

PTTPC president Siripong Phoungpaka, said they have invested about P6 million to be able to comply with the ethanol blend requirement under the biofuels law.

Under Republic Act 9367 or the Biofuels Act of 2006, oil companies are required to blend five percent ethanol in their gasoline products starting Feb. 6, 2009. By 2010, this blend will be increased to 10 percent.Phoungpaka said the investment is minimal since they have already been blending ethanol in Thailand since 1985.

The PTTPC official, however, said they would be pouring in about P500 million to expand its network this year with plans to put up 16 more retail stations all over the country.

The company presently has 34 stations. Each station costs around P5 million to P25 million to build.

PTTPC started offering Performa 95 at its Park n’ Fly Service Station in Pasay City, officially kicking off the offering of the product in all of its stations nationwide.

Performa 95+ (E10) has a higher oxygen content, promoting improved engine combustion resulting in lower greenhouse gas emission and better vehicle performance. It can be used in all cars with fuel-injected engines and there is generally no need for any expansive engine improvement or modification.

Phoungpaka urged the Philippine government to come up with concrete policies to lure investors to put up more ethanol processing plants in the country.

By Donnabelle L. Gatdula, Philippine Star

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Chevron Philippines Inc. (formerly Caltex) will invest some $20 million for its ethanol-related initiatives.

During the launching of its E-10 blended gasoline, Chevron brand manager Dominic Timbancaya said the amount will cover expenses for pipes and tanks for ethanol processing over the next two years.

Local oil firms have been investing capital to comply with the mandated 10 percent blend of ethanol under the Biofuels Act to be carried out in January next year.

If local supply will not be enough, he said the oil companies will be compelled to undertake joint importation to meet their ethanol requirement.

A study made by global management consulting, technology and outsourcing firm Accenture pointed out that biofuels will be a significant part of the global energy mix in the future.

“Although the ultimate scale of the biofuels industry is yet unknown, we believe that biofuels will be part of the future fuel mix and also herald the evolution of a fuels marketplace,” Accenture senior executive of energy industry group Melissa Stark said.

“Our research shows that government policy and technology developments are the biggest uncertainties.

By Donnabelle L. Gatdula, Philippine Star

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Petron Corp., the country’s largest oil refiner, has started the procurement of locally-produced ethanol from Leyte Agri Corp. (LAC).

In a disclosure to the Philippine Stock Exchange (PSE), the publicly-listed Petron said the purchase is consistent with its commitment to promote the use of indigenous alternative fuels.

Petron said they would use the fuel grade ethanol from LAC to blend with its E10 Premium gasoline.

The company purchased an initial 23,000 liters of ethanol from LAC which owns the first manufacturing plant in the country able to produce fuel grade ethanol.

“We strongly support the local production of ethanol as a gasoline additive since it will drive capital investments in rural areas, create more jobs and more importantly, it will lessen the country’s dependence on imported fuel,” Petron chairman Nicasio I. Alcantara said.

“The use of ethanol in gasoline will also have a positive impact on the environment since it is biodegradable and reduces harmful exhaust emissions.”

Petron launched its E10 Premium product last June in selected service stations in Metro Manila as part of its efforts to make available cheaper and more environment-friendly fuels for motorists.

E10 Premium is priced P2 per liter cheaper than its 93 octane gasoline counterpart.

Petron’s E10 Premium is a new specially formulated unleaded gasoline that meets and even exceeds the requirements of the Biofuels Act. It contains 10- percent fuel grade ethanol and 90-percent premium unleaded gasoline with enhanced fuel additive. This unique additive allows the removal of existing deposits, which results in improved power and fuel economy.

The Biofuels Act of 2006 mandates a five-percent ethanol blend in gasoline by 2009 and a 10-percent blend by 2011.

“The early introduction of our E10 Premium product, ahead of the government mandate, underscores our desire to bring the benefits of ethanol-blended gasoline to our customers and stakeholders as soon as possible,” Alcantara added.

To further promote the use of ethanol, Petron has entered into a memorandum of understanding with San Carlos Bioenergy Inc. (SCBI) in 2006 for the supply of ethanol.

Donnabelle Gatdula, Philippine Star

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