Perez said during the launching of the Philippine Energy Plan (PEP) 2005 Update, that the DOE will support Senate Bill No. 1677 and House Bill No. 2583 calling for the establishment of a National Fuel Ethanol Program.
Ethanol or ethyl alcohol is produced by fermenting and distilling crops such as sugar cane, cassava, corn, and other agricultural feedstock.
To be able to attain 60-percent self-sufficiency level by 2010 as projected in the PEP, the government should move for the 10 percent of ethanol blend with gasoline fuel for vehicles by 2007 to reach 25 percent in 2010.
"We need legislation that would require all oil companies to sell ethanol blend," Perez said.
Perez noted that aside from the ethanol bill, an integrated Alternative Fuels Utilization bill has been proposed to further promote wider utilization of alternative fuels.
Perez said this bill is envisioned to expand the market for coconut oil and other agricultural products, create more jobs, increase farmers’ income, improve air quality and enhance the development of rural areas.
To ensure the success of this endeavor, the government is planning to revive the National Alcogas Program, a past initiative of the government in line with the production of non-conventional and renewable sources of fuel.
According to Perez, the National Government can save up to P10.4 billion from using ethanol as a alternative blending product for gasoline.
At present, the country consumes four billion liters of gasoline a year. "If we will use 10 percent ethanol as a blend to gasoline we would realize savings of P10.4 billion within the next three years," he said.
The energy chief said the government of Thailand has signified interest in helping the Philippines in this endeavor. "These two countries are both sugar exporting in the ASEAN. They might as well join hands in becoming less dependent on imported fuels," he said.
Perez said the sugar industry can produce and supply five percent to be used for the promotion of ethanol.
"The sugar producers are willing to expand this percentage up to 10 percent in the next two to three years," he added.
He said Petron Corp., the country’s biggest oil refiner partly-owned by the government has forged an agreement with PTT of Thailand for the development and use of ethanol.
Existing gasoline-run engines could take up to 10 percent-blended gasoline, Perez said.