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IN
COMPLYING with the Biofuels Act of 2006, Petron Corp.,
one of the country’s refiners, might have to tap foreign
ethanol suppliers in the meantime that its supposed
supplier will have the completion of its ethanol
processing plant delayed.
In May
30, 2006, Petron entered into an agreement with San
Carlos Bioenergy Inc. to buy the latter’s entire ethanol
production.
“We may
have to import their requirement for ethanol blend of 5
percent in view of the delay in the completion of San
Carlos’s ethanol plant,” Nicasio I. Alcantara, Petron
chairman, said.
The
Petron official said, ideally, the ethanol should be
sourced locally to also bring prices down.
But just
to comply with the law, according to Alcantara, Petron
will have to source its ethanol requirements abroad.
Alcantara added that Petron will still source their
ethanol requirements where it is cheaper, particularly
from Brazil, India and Thailand.
“But of
course, we are still studying and looking at these
options,” said Alcantara, adding Petron has to
determine its next big step on ethanol blend.
He noted
that Petron has conducted a trial importation from a
supplier that tendered two containers.
Petron
earlier said it has included in its programmed
capital-expenditure budget to finance the setting up of
its ethanol preblending facility.
The
facility will be capable of producing 100,000 liters of
anhydrous ethanol at 99.5-percent purity daily, while
producing 9-megawatts of electricity.
The
plant will be fueled entirely from biomass resources,
particularly from sugar cane, which is grown in the area
and is expected to be operational within 2007.
Petron
declined to divulge how much of its budget is allocated
for its ethanol program.
Petron
plans to beat the deadline for compliance with the
Biofuels Act of 2006, which mandates the blending of
5-percent ethanol with gasoline by 2009.
Petron
is eager to put its ethanol-blending facility on the
ground, which is slightly ahead of schedule.
Petron
said it is looking at initially sourcing its ethanol
supply locally as much as they can, and that it had
talks with some companies on possible supply contract
agreements.
Considering that local supply of ethanol is not in
place, but Petron has also admitted that it could import
ethanol supply.
Early
last year the Petron Board has approved and earmarked
P269 million for its ethanol program this year in view
of the Biofuels Act of 2006, which allowed Petron to go
ahead with all the conversion in their supply chain.
Petron’s
ethanol program includes the putting up of probably new
facilities, pipes and a holding tank for ethanol to be
blended with Petron’s gasoline products. |
