PNOC alternative fuels unit gets P1.3-B budget

The board of Philippine National Oil Co. (PNOC) has approved a P1.257-billion budget this year for PNOC-Alternative Fuels Corp.

"The budget of PNOC-AFC for 2007 covers the financing requirement for the development and establishment of the jatropha mega-nurseries. We are upbeat about jatropha and we aim to become the most prominent alternative fuels-producing company," PNOC-AFC president Peter Anthony Abaya said.

Bulk of the approved budget amounting to P679.96 million has been earmarked for investments; P411.36 million allocated for operating expenses; and P165.67 million for other capital expenditures.

Abaya said PNOC-AFC is targeting to establish its own jatropha mega-nurseries utilizing an aggregate area of 1,000 hectares in various areas in Mindanao this year.

Another 500 hectares will be established at Fort Magsaysay, Nueva Ecija in coordination with the Philippine Army.

"The mega-nurseries will serve not only as sources of seedlings for the commercial plantations but will also be used for research and development including propagation methods, provenance testing, intercropping, and effective management practices. Locally-sourced Jatropha planting materials will be used in the mega-nurseries," Abaya added.

Aside from the projected allotment for the establishment of jatropha mega-nurseries and an investment share in a planned biodiesel refinery, the other items in PNOC-AFC’s budget are intended for research and development, information campaign, and corporate social responsibility projects.

Since its inception, PNOC-AFC was given a clear mandate to spearhead the implementation of the government’s biofuels project.

The biofuels project aims to reduce the country’s foreign oil dependence lessen dollar reserve pressure, produce low cost, high quality biodiesel, alleviate poverty through job creation, clean the air, and bring the Philippines at the forefront of the global biodiesel industry.