Total Philippines: Ethanol Supply to Boom in Next Two Years
November 30, 2009 by Tsikot
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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