Cavite Biofuels to start P3.3-B ethanol project by Q2

Cavite Biofuels Producers Inc. (CBPI) plans to start the construction of its P3.3-billion bioethanol plant in Magallanes, Cavite by the second quarter this year.

Company sources said they could start the construction of the processing plant as soon as they finalize loan package from various banks.

The company has already applied for an accreditation with the Department of Energy to be one of the country’s ethanol producers.

CBPI, a special purpose company led by businessman Antonio Lopa, that was incorporated in January 2008 to develop, construct, own and operate an integrated ethanol distillery and power cogeneration plant.

The Biofuels Act of 2006 mandates a minimum of five percent ethanol blend to gasoline starting February this year.

Bioethanol is alcohol produced from sugarcane and other crops such as corn, cassava and sweet sorghum. It is one of the government’s alternative fuels that aims to help reduce greenhouse gas emissions.

“We hope to award their accreditation soon and they can start construction though it may take time for them to order equipment,” Department of Energy director Mario Marasigan said.

The DOE has approved the accreditation of bioethanol producer Roxol Bioenergy Inc., the bio-ethanol arm of listed firm Roxas Holdings Inc. Roxol will build a P1.138-billion ethanol plant in La Carlota, Negros Occidental this year. 

The facility will be able to produce 100,000 liters of bioethanol per day.

CBPI, along with Cavite Sugarcane Planters Multi-Purpose Cooperative, will develop a 125,000-liters per day bioethanol distillery in Caluangan, Magallanes, Cavite. 

The bioethanol facility will also be able to generate five megawatts of power.

The facility is situated close to the oil refineries in Batangas and the Pandacan depot and to the demand centers of Metro Manila and South Luzon, which will address the issue of transport cost.

In September last year, CBPI and the Cavite sugar planters started their joint sugarcane nursery to supplement the existing sugarcane plantations in the third district of Cavite.