The Department of Energy (DOE) is on the planning stage for the estabishment of an ethanol highway in the country, a ranking DOE official said.
Energy Secretary Raphael P.M. Lotilla said they are now coordinating with other government agencies to draw proposals from investors for the ethanol linkage.
Lotilla said among the areas being looked at as possible investment sites are in the Visayas and Mindanao.
Some of the specific areas being explored as potential ethanol corridors are San Carlos City, Negros Occidental-Tamlang Valley in Negros Oriental for Visayas and Zamboanga-Pagadian Road in Mindanao. These areas have also been identified as part of the country’s biofuels program.
Areas being considered to be part of the ethanol highways are those closest to the sources of ethanol feedstock such as sugar cane and jatropha.
President Arroyo has earlier directed energy officials to explore possible ethanol corridors to promote the use of alternative fuels.
The DOE said among the first two ethanol refineries would be put up by San Carlos Bioenergy in Negros Occidental and First Bukidnon in Mindanao.
The concept of the ethanol highway is similar to that of the Midwest Ethanol Corridor program of the US which covers routes I-55 in Illinois and I-70 in Missouri. These areas were established as a showcase for the availability of gasoline stations that offer E85 blend to flex-fuel vehicles.
E85 is a blend of 85 percent ethanol and 15 percent gasoline now offered in over 1,000 gas pumps in the US.
This concept was pioneered by major FFV manufacturer Ford Motor Co. in partnership with VeraSun Energy Corp., the second largest ethanol producer in the US.
The Philippine biofuels law mandates an initial five percent ethanol volume blend in gasoline products starting 2009. This ethanol blend level will then be increased to 10 percent after four years.
There are indications the government would eventually jack up the blend to 20 percent or higher. This is the level where incentives for investments are currently being studied by the DOE.
The DOE is also looking at relaxing the excise tax on vehicles run by alternative fuels.