Ethanol output hits 222-M liters

MANILA, Philippines - Ethanol production in the country reached 222 million liters to date with the entry of three new producers.

This is nearly double the capacity from last year’s 114 million liters, according to data from the Sugar Regulatory Administration.

However, Rosemarie Gumera, Sugar Regulatory Administration manager for policy and planning, said production is still short of the annual demand of “a little less than 400 million liters.”

Nevertheless, production has gone a long way and has steadily increased from 71.5 million liters in 2013, Gumera said.

Facilities that contributed to the increase in production are Universal Robina Corp.’s 30 million liter ethanol facility in Negros Oriental,  Kooll Company’s 12 million liter ethanol facility in Negros Occidental and Far East Alcohol’s facility in Pampanga with a 15 million liter capacity, Gumera said. 

URC, controlled by the Gokongwei Group  announced last year that it already received its first fuel ethanol order from independent oil player Flying V.

Under the supply agreement, URC’s ethanol facility would supply Flying V with fuel-grade anhydrous ethanol suitable for gasoline blending.

The Biofuels Act of 2006 mandates the implementation of the five percent biodiesel blend from the current two percent.

Despite the steady increase in production, oil industry players want the government to revisit the Biofuels Law specifically the mandate of blending ethanol with gasoline as ethanol production remains short of demand.

Oil companies are still importing bulk of their requirements to comply with the government’s E10 or 10 percent blend requirement for gasoline.

“Local production is not enough even at five percent ethanol blending for total annual gasoline volumes. What more at 10 percent of volume? Ever since the Biofuels Law was passed in 2007, oil companies have been importing ethanol to comply with the government’s mandate. How are we helping farmers when we import 70 to 80 percent of our ethanol requirements abroad? Despite a captive market, local production is grossly insufficient. We are basically replacing imported gasoline with imported ethanol,” an oil industry source said.