16 Asian nations to adopt accord on boosting energy security

CEBU — Leaders of 16 nations — from the Philippines to South Korea — are expected to agree to boost Asia’s energy efficiency and combat climate change by seeking new fuel sources, particularly biofuels, a draft document showed.

The Cebu Goals on East Asian Energy Security is to be signed tomorrow by the heads of government at the East Asia Summit, which brings together the 10-member Association of Southeast Asian Nations (ASEAN) and their six dialogue partners — Australia, China, India, Japan, New Zealand and South Korea.

The plan aims to help countries reduce their dependence on conventional fuels through intensified energy efficiency programs, expansion of renewable energy systems and biofuel production and utilization, according to a draft copy of the agreement obtained by The Associated Press yesterday.

President Arroyo — in a statement expected to be issued at the end of ASEAN’s annual summit over the weekend ahead of the wider East Asian conclave — says ASEAN wants to work with neighboring countries to explore alternative energy resources and sustain financial growth.

Government leaders have "noted with concern the prolonged rise in oil prices and the difficulties (posed) to the economic growth and development of ASEAN member countries and the region," said a draft of Mrs. Arroyo’s statement.

Last Thursday, the President signed into law Republic Act 9637 or the Biofuels Act, which requires vehicle manufacturers and owners as well as oil companies to use fuels diluted with sugar or starch-derived alcohol to reduce the country’s dependence on imported fuel and promote cleaner air.

The draft accord does not say what types of biofuels might be emphasized and does not give specific details of the kinds of energy efficiency programs being considered.

But some ASEAN countries such as Malaysia have started working to commercially produce alternative fuels such as biodiesel, comprising mainly palm oil, and ethanol made from the sap of nipa trees.

Using such renewable raw materials to produce fuels is aimed at reducing the world’s dependence on dwindling stores of fossil fuels such as crude oil and coal.

Biofuels also produce lower amounts of harmful greenhouse gases that contribute to global warming compared to traditional fuel sources.

Minimizing greenhouse gas emissions and investing in infrastructure — such as a regional electricity grid and a natural gas pipeline spanning Southeast Asia — to ensure stable energy supplies are among the draft agreement’s other goals.

The blueprint provides no timeframe for these goals, which underscore increasing efforts by ASEAN in recent years to enhance energy cooperation and alleviate the impact of high oil prices.

The energy security agreement also encourages countries to explore possible modes of fuel stockpiling through regional arrangements, and urges oil-rich nations to channel petroleum profits toward equity investments and low-interest loan facilities for other developing countries.

ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

RP to save P1.3 B with biofuels

The government would save $26 million or about P1.3 billion worth of fuel imports with the initial implementation of the 2006 Biofuels Act, the Department of Science and Technology (DOST) said yesterday.

Science and Technology Secretary Estrella Alabastro said the passage of the Biofuels Act into law may also attract local and foreign investors to set up more facilities for the production of biofuels.

"This will stimulate production, because this is all investors are waiting for, the biofuel law, so that they can pour in investments in biofuel facilities," Alabastro said.

President Arroyo signed the 2006 Biofuels Act into law Thursday.

Mrs. Arroyo earlier said that, with the enactment of this law, the country is expected to lessen its dependence on imported fuel and achieve energy independence.

"The good part is the energy security," Alabastro said. "At least our importation will be reduced a bit and we will no longer be too much at the mercy of petroleum-producing countries any more."

"We are optimistic that we can help our farmers with the raw materials they will use for biodiesel production," she added.

The Philippines is importing 30 percent of its fuel requirements.

The new law requires a minimum one percent of biofuel to be blended with diesel within the first year of its affectivity, a percentage that will be raised to four to five percent within two years.

The Biofuel Act of 2006 also mandates the blending of bioethanol in gasoline sold locally.

The law also provides tax exemptions, financial assistance and other incentives to encourage investments in the biofuels industry.

Besides generating huge savings for the country, the Biofuels Act is also expected to lead to the reduction of the pollution caused by fossil fuel emissions.

Department of Energy Undersecretary Mariano Salazar earlier said that, "in the event that the Biofuel Act is passed, P29 billion of foreign exchange savings will be realized as a result of 657 million liters of biofuels to substitute imported diesel and gasoline products." — AP, Helen Flores