THE country’s bioethanol output could expand to 322 million liters in 2017, as two new plants will begin operations next year, according to the Sugar Regulatory Administration (SRA).
The SRA said local bioethanol output will be boosted by ProGreen AgriCorp. Inc., a wholly owned subsidiary of Emperador Distillery Inc. and Cavite Biofuels Producers Inc.
“So we have two bioethanol producers that will come on stream and their combined production capacity is 60 million [liters]. Total production capacity could reach 322 million [liters] next year,” SRA Policy and Planning Manager Rosemarie Gumera told reporters in an interview recently.
Despite the projected increase in output, Gumera said the local distillers would only be able to supply less than half of the mandated ethanol requirement.
“Because we have a shortage in feedstock, local distillers may only be able to supply less than 50 percent of the mandated requirement,” said the SRA official, adding that the agency has yet to come up with an estimate of the mandated requirement for 2017.
Gumera said the country’s total bioethanol output this year could reach at least 220 million liters, lower than the mandated 570 million liters bioethanol required by the Department of Energy (DOE).
“As of September, [production] is 177 million liters but I estimated that it will reach no less than 220 million liters by the end of this year,” she said.
Under the Biofuels Act of 2006, all liquid fuels for motors and engines sold in the Philippines should contain locally sourced biofuel components. Oil companies were required to sell gasoline with at least 10-percent ethanol blend.
Oil companies, however, find it difficult to comply with the provisions of the law due to the lack of locally produced ethanol.
However, oil companies are allowed to import if the local industry could not supply the total mandated ethanol requirement, Gumera said.
There are currently eight bioethanol producers in the country: Absolut Distillery, Leyte Agri Corp., Far East Alcohol Corp., Universal Robina Corp., Balayan Distillery Inc., Green Futures Innovation Inc., San Carlos Bioenergy Inc., Kooll Co. Inc. and Roxol Bioenergy Corp.
Distillers use sugar cane as feed stock to produce ethanol. Gumera, however, said the shortage in feed stock has made it difficult for distillers to produce the local requirement.
Last year the country’s total bioethanol requirement was at 522 million liters, but output reached only 168 million liters.
“Although our existing capacity of existing plants today is at 282 million liters, we were not able to supply the demand of 522 million liters in 2015,” Gumera said.
The US Department of Agriculture’s Foreign Agriculture Service (FAS) in Manila projected that Philippine ethanol output would increase this year and next year.
Based on the FAS Global Agriculture Information Network (GAIN) report published in mid-August, Philippine ethanol output this year could reach 266 million liters while production in 2017 may expand to as much as 296 million liters.
“This is premised on an optimistic capacity-utilization rate of above 90 percent for 2016 and 2017. As a result, imports are projected to decline through 2017,” the report read.
The Gain report noted that imports are expected to decline to 281 million liters this year from 311 million liters in 2015. Imports in 2017 could go down further to 278 million liters.