BioFuels 88 mulls expansion

Newly-formed BioFuels 88, a subsidiary of Flying V, is looking at the possibility of expanding its capacity, a company official said.

BioFuels president Macky Lopez said they plan to expand BioFuels operations after its ethanol project in Mariveles, Bataan got a tax incentives from the Board of Investments (BOI).

The ethanol plant will be constructed in Mariveles, Bataan with a capacity of 60,000 liters per day.

The BOI approval will enable the company to get tax breaks such as income tax holiday and duty free importation of equipment.

Lopez said on top of Bataan plant, they intend to expand its operations in other areas in the country.

He said they plan on "putting small-sized ethanol plants in selected areas around the country."

According to Lopez, they are looking at Mindanao, Cebu, Cagayan and Batangas as potential areas to construct small ethanol plants.

He said the expansion will aim to also help in enhancing economic development in the countryside by providing livelihood to sugarcane farmers while helping the government achieve its goal of energy independence.

Lopez noted the importance of planting more sugarcane to support the possible growth in demand for this crop with the expected implementation of the Bio Fuels Law which will mandate a minimum of five percent ethanol blend for gasoline.

The BioFuels 88 official said they intend to tap other investors to participate "in the benefits of the emerging ethanol industry."

Based on estimates, by using 10 percent ethanol blend, the Philippines will displace 565 million liters of gasoline equivalent to foreign exchange savings of $354 million per year.