Flying V, Eastern Petroleum, Seaoil Philippines and Unioil Philippines have formed Enerfuse Holdings Inc. to represent their 50- percent stake in Bioenergy8 Corp., the corporate vehicle for the 60,000-liter biodiesel manufacturing plant in Coronon, Davao expected to be operational by March this year.
The remaining 50 percent of Bioenergy8, on the other hand, will be owned by coconut producers Golden Asian Oil and Mt. Holly Coco Industrial Co., a foreign oil and trading company, and other local investors.
The biodiesel plant is seen to supply half of the country’s annual biodiesel requirements. Some of its produce will also be exported to other countries including Japan.
Flying V spokesman Macky Lopez said this project is consistent with government’s efforts to use alternative fuels, particularly with the enactment of the Biofuels Act. The law is set to be signed today by President Arroyo in Malacañang.
"The biodiesel plant will help the Arroyo government achieve its goal of energy independence. We, at the petroleum industry, remain committed in joining hands with the government to promote alternative fuels," Lopez said.
According to Lopez, they opt to locate the proposed biodiesel plant in Mindanao which accounts for 40 percent of the country’s local coconut plantation. Mindanao produces 58 percent of the 1.7-billion liters total coco oil production of the Philippines.
He said Mindanao is also a strategic location as it is not frequently affected by weather disturbances unlike the Bicol region, wherein most coconut plantations were damaged by the recent typhoons.
"Mindanao will easily be able to supply the raw materials needed in the plant’s production of methyl-ester," Lopez said.
While the plant is yet to be built, Lopez said Bioenergy8’s stakeholders are already contemplating on expanding its operation by constructing another plant in Northern Luzon, particularly within the Laguna area.
Lopez also dismissed apprehension of a possible lack of supply of biodiesel in the country as he pointed out that a number of investors are willing to put up more biodiesel facilities once the biofuels bill is signed into law.
The STAR earlier reported that a group of Filipino businessmen has formed Bio-Energy NL to pour in P15 billion ($300 million) to put up a biodiesel plant in Northern Luzon.
"There were earlier fears that the price of biodiesel will go up. But with competition, the forces of supply and demand will come into play," Lopez said.
Flying V is the first company to offer pre-blended biodiesel. Seaoil, on the other hand, is marketing bioethanol, Eastern Petroleum offers autogas in its stations while Unioil is another aggressive small oil player.