Seaoil launches RP’s first ethanol-blended gasoline

The Philippines’ first environment-friendly ethanol-blended gasoline – E10 or Ethanol 10 will be launched today by Seaoil, one of the smaller oil companies backing the National Fuel Ethanol Program that seeks to reduce the country’s dependence on expensive imported oil.

The program kick off will be headed by no less than President Arroyo who will pump the first E10 gas pump dispenser at the Seaoil station along EDSA in Quezon City.

Dubbed "fuel for change", E10 is one of several alternative fuel oils the government is promoting to encourage new investments in renewable energy sources such as wind, coco-biodiesel and natural gas in the wake of a looming oil prices triggered by the relentless surge in crude oil prices in the world market.

Aside from Seaoil, the other companies putting up E10 gas pump dispensers in their stations are Eastern Petroleum Corp. and USA 88. At least 400 stations will be selling E10 this year and will be gradually expanding in the coming years.

Independent oil companies, unlike the bigger oil players such as Petron Corp. and Pilipinas Shell Petroleum Corp. that have oil refineries, are finding it more difficult to cope with spiraling oil prices and as a result, are more receptive to finding alternative fuels. Earlier this month, Flying V announced plans to expand its distribution of its new product, a diesel pre-blended coco methyl ester (CME) under the brand name Envirotek Bio-Diesel Premium.

The Department of Energy (DOE) said motorists will be able to generate savings from mileage efficiency amounting nearly P16 billion from the use of bio-diesel. On the other hand, using a one percent ethanol blend in gasoline will generate savings of $2.9 million and $7.9 million by 2008 with a 10-percent ethanol blend.

E10 is a blend of 10-percent ethanol and 90-percent gasoline. Eventually, stakeholders in the ethanol industry believe that the concentration of ethanol will be increased and it will be the "gasoline of choice" in the next few years.

Ethanol is an alternative energy resource produced from crops such as corn, grain sorghum, wheat, sugarcane and other agricultural feedstocks. It is an environment-friendly fuel because it is biodegradable and decreases greenhouse gas by 19 percent, carbon monoxide by 30 percent and toxic emissions by 22 percent. It has lower potential to damage the ozone layer. Ethanol is also found to further improve the engine performance of cars as it boosts the octane rating of gasoline and promotes better combustion.

Ethanol-blended fuels have been accepted since the 1980s. To date, leading car manufacturers worldwide have given their approval to the use of 10-percent blend to their engines, recognizing the positive benefits of ethanol.

To accelerate the implementation of the National Fuel Ethanol Program, the House of Representatives and the Senate are hammering out a consolidated bill that it hopes to enact into law before the end of the year.

Bukidnon Representative Miguel Zubiri who is chief sponsor of a bill in Congress that proposes various fiscal incentives and perks under the national ethanol program has vowed to push the passage of the bill in the Lower House by September.

Aside from spurring new investments in ethanol plants, Zubiri said mandating the use of ethanol for the transport and power sectors will also help sustain the local sugar industry.

He said sugar hectarage in the country can increase three-fold up to 900,000 hectares once the National Fuel Ethanol Act mandating the use of ethanol blend in gasoline is enacted into law.

Zubiri said that feasibility studies show that using a five percent ethanol blend will require expanding sugar hectarage by 300,000 hectares from the current 380,000 hectares. A 10-percent ethanol blend will further require raising the hectarage by another 300,000 hectares in four years.

"This is a very upbeat program, it is promising for the sugar industry which will now have a new market for its product, especially if the transport sector raises its demand for ethanol," said Zubiri.