Total sees local ethanol industry growing in next two years

MANILA, Philippines - The local unit of global oil major Total   is upbeat on the growth of the local ethanol industry in the next two years.

In the other day’s launching of the E10 Fuel Economy Run 2009, Total Philippines president and managing director, Ernst Wanten noted that while there is still a noticeable supply shortage of ethanol, investments are being continuously made to ensure adequate supply.

“The problem is the supply of ethanol. There’s a shortage in both the local and international markets so it is really difficult to get reliable supply of ethanol at the moment,” he pointed out.

Thus, he called on the government to encourage more local ethanol producers to start building new ethanol processing plants.

 “They have to start to invest more,” he said.

Wanten said Total has made preparations for the future compliance of ethanol blend on gasoline. “We’ve done all the investments and at the moment, all our fuels are E10,” he said.

E10 is the internationally accepted acronym for gasoline blended with 10 percent bioethanol. It is the cleaner-burning, renewable component that helps reduce global greenhouse gas emissions.

Under the Biofuels Act of 2006 or Republic Act 9367, bioethanol should represent a minimum of five percent of total volume of gasoline sold and distributed by oil companies effective Feb. 6, 2009. Bioethanol is a high-octane, water-free alcohol produced from the fermentation of sugar or converted starch.

On Feb. 6, 2011, all gasoline should contain a minimum of 10 percent bio-ethanol.

In 2011, the National Biofuels Board (NBB) is empowered to recommend to the Department of Energy (DOE) to decrease the mandate to a minimum blend of five-percent bioethanol depending on the local supply of bioethanol.

Due to inability of the local ethanol producers to meet demand, oil companies import most of their ethanol requirement.

“We import from different destinations. Its by necessity, not by choice,” the Total official said.

Wanten said the government must be able to come up with appropriate “sweetener” to lure investors into ethanol manufacturing business.

“Its like any investment, of course. They want to see a certain reliability on their revenues for their investment so, I think that what’s holding them back. They want some guarantees which is understandable. On the other hand, of course, the end-consumer shouldn’t be the victim,” he said.

To show commitment on the use of cleaner fuels, Total Philippines has partnered with the Department of Energy (DOE) for this year’s E10 Fuel Economy Run.

This annual event determines the fuel consumption ratings of different vehicles in accordance to actual driving conditions, so that vehicle owners, buyers and the consuming public will be aware about the fuel efficiency of their vehicle models. As it empowers consumers, it also promotes the importance of fuel conservation in the industry of transportation.

It gathered participants from original equipment manufacturers (OEMs) or car manufacturers and dealers, such as Ford, Honda, Kia, Mazda, Mercedes-Benz, Mitsubishi, Ssangyong, Suzuki, Toyota and Volvo. Each team consisted of a driver, a navigator, and a representative from the Citizen Traffic Action (CTA); who was also the auditor.

Participating vehicles fuelled up with Total Premier unleaded gasoline at the Total Newport City Station in Pasay City. Each car ran at a maximum speed of 80 kph and was not allowed to overtake other team vehicles.

The Fuel Economy Run covered a “standard” distance of 317 kilometers, from the DOE office in Fort Bonifacio then to EDSA, North Luzon Expressway, Subic-Clark-Tarlac Expressway and the Total Subic Tipo station in Subic, Zambales, before going back to the DOE.