DA in talks with European investor for local bioethanol production

MANILA, Philippines - A European investor with a Filipino partner is interested in putting up a plant in  the Philippines for the production of bioethanol as fuel blend, according to  Agriculture Secretary Proceso Alcala. 

Alcala said these investors, who are pitching the investment proposal to a potential Japanese partner, are eyeing 50,000 hectares of contract growing areas for cassava and sweet sorghum in several crop cultivation expansion areas earlier identified by the DA.

The bioethanol that would be produced by the venture would be for domestic use and possibly for export.

Bioethanol, also called ethanol fuel, is a light alcohol produced by fermenting  starch or sugar from corn, sugarcane, cassava or nipa and is used as a substitute or blend to gasoline.

“They want to put up a factory to produce low-cost bioethanol, the raw material which they will source from the Philippines. This will create livelihood for farmers,” said Alcala who spoke with the investors last week.

The Agriculture chief withheld the identity of the investors and the size of the investment because discussions on the investment is still in the preliminary stages.

Alcala said there are several cassava and sweet sorghum expansion areas that remain unutilized. For the proposed contract growing scheme, the DA is identifying at least three neighboring provinces that could supply the crop demand of the planned facility.

“The DA will identify at least three integrated growing areas that can give them the volume,” he said.

The investors will resume discussions with the DA in several weeks’ time.

The DA has been pushing for the use of sweet sorghum for the production of bioethanol to lessen the pressure on sugarcane which is primarily used for sugar production.

There are currently three plants in the country that process sweet sorghum for bioethanol production. These are San Carlos Bioenergy Inc. in Negros with the capacity of 30 million liters per year; Leyte Agro-Industrial Corp.with a capacity of nine MLPY; and Roxol Bioenergy Corp. in Negros with a capacity of 30 MLPY.

The Department of Energy (DOE) is currently drafting a revised five-year biofuel program to increase by 2030 the blend of ethanol in gasoline to 20 percent from the current 10 percent being implemented, and of coco-methyl ester in diesel gasoline to 10 percent (B10) from the current two percent.

Before 2030, the DOE and the DA are deliberating if the current two percent blend of coco-methyl ester in gasoline could be raised to five percent.