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AGGRESSIVELY positioning itself to contribute to the
government’s Biofuels Act of 2006, Eastern Petroleum
Corp. (EPC) is set to sign a joint-venture agreement
with Guanxi Estate Group for its first phase of project
development before the end of the month.
“I’m
leaving for China this week to sign a joint venture
agreement for our first $30-million ethanol plant that
can produce 200,000 liters a day,” Fernando L.
Martinez, EPC chairman and chief executive, told
reporters.
He added
that EPC has already developed a 2,000-hectare cassava
plantation in Sarangani province.
“We are
looking at other countries, particularly Indonesia and
Cambodia, to see if there are places there where we can
grow and expand, because if the locals are not that fast
in acting, then we might as well go there,” he said.
For
EPC’s ethanol facility, according to Martinez, they will
initially target to produce 60 million, and 300 million
liters of ethanol by 2009.
Martinez
said there is a need to fill around 20-percent or less
of the market.
“We have
to put it there [abroad], including the ethanol plant
and possible refineries. It does not make sense that we
just import the feedstock. We’re targeting to start
construction by last quarter of 2008, and have it
operational by either late 2009 or first quarter of
2010,” said Martinez.
He added
that every 6.5 kilos of cassava is equivalent to 1 liter
of ethanol.
Martinez
further explained that the first agreement will cover
the technology transfer—where the superior stock of
Guanxi Estate Farm will be introduced to local farmers
to enhance productivity.
Locally,
Martinez said farmers average 35,000 kilos of cassava
per hectare, while EPC’s Chinese partners claim they can
produce between 50,000 kilos and 70,000 kilos of
cassava.
Martinez
added that when productivity is increased, the more it
becomes palatable for farmers to shift and increase
their farm income, which can encourage more people to
enroll in the program.
In May
EPC announced that it and Guanxi have agreed to form a
50-50 joint venture that will develop some 10,000
hectares into an ethanol plantation.
Martinez
said they target an output of 400 million liters of
ethanol by 2010 in preparation for the implementation of
the 10-percent Philippine ethanol blend under the
Biofuels Act of 2006.
The law
mandates a 5-percent solution two years after enactment
and 10 percent after four years.
Martinez
said EPC expects Unioil Petroleum Philippines Corp. to
participate in the joint venture later.
He
listed potential plantation sites EPC is looking at:
Zambales, the Ilocos, Northern Mindanao, Central Luzon,
Cagayan de Oro, Davao, Batangas and Mindoro.
He added
EPC is also considering cassava as feedstock. “We think
that it would be more viable to produce ethanol from
cassava instead of sugar cane.”
Only San
Carlos Bioenergy and Southern Bukidnon Bioenergy have
presented concrete plans to put up ethanol-manufacturing
facilities.
San Carlos
is expected to start commercial operation by next year
and will supply the bioethanol requirements of Petron
Corp. Ethanol used in the Philippines at present is
mostly imported.
President Arroyo signed the Biofuels Act on January 12,
2007, and it became effective February 2007.
The
benchmark legislation is expected to reduce the
country’s dependence on imported fuel. It is also
expected to speed up government efforts for energy
self-sufficiency. |
