THE next two years may be the banner year for the local ethanol-supply industry, Ernst Wanten, Total (Philippines) Corp. president and managing director, indicated to reporters in an interview on Friday.

“Though there is an ethanol-supply shortage today, the government needs to encourage more local ethanol producers to put up the needed processing plants,” Wanten said.

The recently appointed Total official said there is a problem in securing ethanol owing to the shortage in local and international supply.

Wanten said his company has already fully complied with the 10-percent ethanol blend as mandated in the Biofuels Act of 2006. He even shared that there could even be a supply shortage in 2011, when all oil companies blend 10 percent of ethanol (E10) in their entire gasoline product line.

Wanten stressed the need for local ethanol producers to start investing in more producing plants.

However, he said his company has prepared for the future compliance of ethanol blend on gasoline by making all investments needed to make sure that Total’s gasoline in the country is already E10-compliant.

E10 is the internationally accepted acronym for gasoline blended with 10- percent bioethanol. It is the cleaner-burning, renewable component that helps reduce global greenhouse-gas emissions.

Under Biofuels Act of 2006, ethanol should represent a minimum of five percent of total volume of gasoline sold and distributed by oil companies effective Feb. 6, 2009.

Bioethanol is a high-octane, water-free alcohol produced from the fermentation of sugar or converted starch.

On Feb. 6, 2011, all gasoline should contain a minimum of 10-percent bioethanol.

In 2011, the National Biofuels Board (NBB) is empowered to recommend to the Department of Energy (DOE) to decrease the mandate to a minimum blend of five-percent ethanol depending on the local availability of ethanol.

At present, local oil companies are allowed to import most of their ethanol requirement owing to the inability of the local ethanol producers to meet the demand.

“We import from different countries,” said Wanten, adding that the government must be able to come up with an appropriate “sweetener” to lure investors into ethanol manufacturing.

“It’s like any investment where investors want to see certain reliability on their revenue streams. So I think what’s holding them back, so they want some guarantees which are understandable. On the other hand, of course, the end-consumer shouldn’t be the victim,” Wanten pointed.

To show commitment to the use of cleaner fuels, Total Philippines partnered with the DOE for this year’s E10 Fuel Economy Run, which determines the fuel-consumption ratings of different vehicles in accordance to actual driving conditions so that vehicle owners, buyers and the consuming public will be aware about the fuel efficiency of their vehicle models.

As it empowers consumers, it also promotes the importance of fuel conservation in the industry of transportation.

It gathered participants from Original Equipment Manufacturers or car manufacturers and dealers, such as Ford, Honda, Kia, Mazda, Mercedes-Benz, Mitsubishi, Ssangyong, Suzuki, Toyota and Volvo. Each team consisted of a driver, a navigator and a representative from the Citizen Traffic Action, who was also the auditor.

Participating vehicles fueled up with Total Premier unleaded gasoline at the Total Newport City Station in Pasay City. Each car ran at a maximum speed of 80 kph and was not allowed to overtake other team vehicles.

The Fuel Economy Run covered a “standard” distance of 317 kilometers, from the DOE office in Fort Bonifacio then to Edsa, North Luzon Expressway, Subic-Clark-Tarlac Expressway and the Total Subic Tipo station in Subic, Zambales, before going back to the DOE.

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Energy Secretary Angelo Reyes on Friday urged motorists to switch to ethanol-blended gasoline (E10), stressing its economic benefits not only for the government but also for consumers.

Under the Biofuels Act (Republic Act No. 9367), local oil companies are now required to sell gasoline pre-blended with 5 percent ethanol. The new requirement that took effect yesterday is expected to result in the displacement of some 208 million liters of gasoline.

“The bioethanol program is designed to reduce the country’s dependence on costly imported fuel and to help create a new domestic fuel industry,” Reyes said.

Some oil companies had been selling ethanol-blended gasoline as early as last year. Their E10 variants have also surpassed the required 5-percent blending, as oil companies chose to pre-blend gasoline with 10 percent ethanol.

“The production and use of bioethanol can serve a variety of needs,” Reyes explained. “On a national level, bioethanol can improve the balance of payments by displacing imported petroleum with domestically produced fuel. It may also provide more jobs in rural areas and alternative markets for agricultural commodities.”The energy official pointed out that the use of E10 would mean “better performance, reduced carbon monoxide and unburned hydrocarbon emissions which, in most cases, would improve fuel economy.”

Cleansing effect

“E10 is known to provide high octane rating at low cost as an alternative to harmful fuel additives. E10 has the added advantage of high volumetric efficiency and helps to keep valves cool, contributing to increased power,” Reyes said.

Apart from being biodegradable, bioethanol reduces greenhouse gas emissions because it burns more efficiently, thus significantly reducing unburned carbons, he added.

According to the energy department, blending serves two purposes. First, it extends gasoline supplies and second, it replaces metallic-based additives, being an octane enhancer.

“Bioethanol has a cleansing effect, removing rust and other unwanted contaminants that may have accumulated in the tank and fuel system over the years,” the department added.

Reyes said oil companies like Chevron, Eastern Petroleum Corp., Flying V, Petron, PTT, Shell, Seaoil, Total and Unioil have affirmed their commitments to expand production and marketing of E10, to service local demand. They also assured the government that their E10 brands met Philippine National Standards.

Meanwhile, the Chamber of Automotive Manufacturers of the Philippines (Campi) and the Philippine Automotive Federation Inc. (Pafi) said E10 can be used to power all fuel-injected engines, particularly in vehicles manufactured after 1999.

Among the E10 endorsers are Chevrolet, Honda, Hyundai, Isuzu, Kia, Mitsubishi, Nissan, PGA Cars (importers of Audi and Porsche), Suzuki, Toyota and Volvo.

Both Campi and Pafi, however, advised owners of older model cars to consult accredited service shops if they want to fill up with E10.

By Amy R. Remo, Philippine Daily Inquirer

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Nissan Motor Co., Ltd. kicked off the New Year in Brazil with a new product on the manufacturing line. The Nissan Livina is the first passenger vehicle to be produced through the Renault-Nissan Alliance Plant in São José dos Pinhais. It will be Nissan’s first E100 flex-fuel vehicle capable of running on both petrol and ethanol.

The two-row, five-seat MPV Livina will be available at Nissan dealerships in Brazil by March 2009. It will be available with a 1.6-liter K4M engine with manual transmission or a 1.8-liter MR engine available with automatic transmission.

Nissan do Brasil plans to continue bringing more locally produced models to market. Among these will be the three-row Grand Livina, which offers seating for seven. This MPV will be available for customers later this year.With the Livina launch, Nissan do Brasil is pursuing a strategy to strengthen its presence in the country by continuing to grow sales through the introduction of more products available through more sales outlets.

Nissan vehicles manufactured at the Brazilian Alliance Plant meet Nissan’s global quality levels following the Alliance Vehicle Evaluation Standard (AVES). Developed through the Renault-Nissan Alliance, AVES means that vehicles are evaluated before mass production by company-certified “AVES masters.” The evaluation process involves more than 300 criteria based on customer expectations.

Global car
Nissan Livina is a member of Nissan’s global car family, which also includes the Grand Livina and the sporty Livina C-Gear/X-Gear. Brazil joins China, Indonesia, Taiwan, South Africa, Malaysia and the Philippines as producers of the Livina family of vehicles. Since 2006, nearly 200,000 vehicles in the Livina family have been sold in the producing countries and Egypt, which imports the Livina C-Gear from China.

The models in the Livina family offer an ample interior for passenger comfort, excellent all-around visibility and a trunk format that makes for easy loading of luggage and other items. The Nissan Livina family has been recognized for its balanced combination of space, performance and design, having been named the “Best MPV/Station Wagon 2008 (South Africa),” “The World’s Most Beautiful Automobile – China MPV segment 2007″ and the “Best Small MPV Monocoque 2008 (Indonesian Car of the Year),” among other accolades.

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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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