not enough supply of ethanol

[mreyes]

just read this a while ago...

http://business.inquirer.net/money/b...-gasoline--DoE

Not enough supply to enforce 10% ethanol blending for gasoline--DoE
By Amy R. Remo
Philippine Daily Inquirer
First Posted 19:08:00 01/24/2011

Filed Under: business, Oil & Gas - Downstream activities
MANILA, Philippines -- The Department of Energy has been mulling pushing through with the mandated 10-percent ethanol blending for gasoline, as local ethanol supply remains short of the requirements of oil companies.
Energy Undersecretary Jose Layug, Jr. clarified that the plan to raise the blending of ethanol to 10 percent from the current 5 percent was not even mandatory.
“It's not mandatory—in fact that's the job of the National Biofuels Board. We will make a determination whether or not we will recommend to the DOE the mandate to (raise the blending to) E10. We are not there yet and we're still conducting public consultation,” Layug explained.
The Biofuels Law states that “within four years from the effectivity of this Act, the NBB created under this Act is empowered to determine the feasibility and thereafter recommend to DOE to mandate a minimum of 10 percent blend of bioethanol by volume into all gasoline fuel distributed and sold by each and every oil company in the country.”
According to Layug, a number of issues should be threshed out during these consultations since there is still no adequate local ethanol supply.
“We also need to emphasize that although we advocate for cleaner fuel, we have to ensure that it would not push pump prices to increase as well. We cannot afford pushing for this [increase ethanol blend to 10 percent] and then it will increase local oil prices,” he explained.
“But at the same time, the local oil companies must ensure that they purchase first from local ethanol producers. They are given priority, and the DOE will issue a circular to that effect. The law mandates oil companies that local ethanol production must be prioritized,” Layug said.
“What we propose to do is provide penalties if they do not comply. Some of them will import, but we have to make sure that they have purchased from local ethanol producers before they import. And so far, all of local production is being tapped,” he further disclosed.
Once the government mandates a 10-percent blend starting this year, ethanol demand is expected to increase to 461 million liters from last year’s estimated demand of 219 million liters, DOE data show.
However, local ethanol producers can only supply a fraction of this demand or an estimated 83 million liters this year.
The supply is expected to come from San Carlos BioEnergy Inc., which produces 40 million liters a year; Leyte Agri Corp. with 10 million liters annually; and Roxol Bioenergy of Roxas Holdings Inc., which is expected to go on stream this year, with an annual production of 33 million liters.

-so, ano na mangyayari ngayon? mas tataas pa ang e10? ang galing talaga magpatupad ng batas, basta makapasa lang ng batas...kahit walang research.