Ethanol as alternative fuel

(Conclusion)

In the US, each barrel of ethanol produced reportedly displaces 1.2 barrels of petroleum. Assuming an ethanol-gasoline displacement ratio of just 1:1 for the Philippines, 400 million liters of ethanol will reduce our oil imports by that much. This means tremendous foreign exchange savings that can help stabilize the peso.

A published DOE article estimates a savings of P7 billion a year for the country if all gasoline-powered cars in the Philippines switch to a fuel containing 5 percent ethanol. In terms of foreign exchange savings, the article said that a 10 percent ethanol blend could displace 5356 million liters of gasoline by the fourth year of the bio-ethanol law, resulting in dollar savings of $294 million. Apart from the thousands of jobs that a new ethanol industry can create, it will also increase the income of farms and liven up the agricultural sector.

According to Zubiri, the country will have to rebuild at least 20 ethanol plants to meet the estimated 500 million liters of ethanol needed to help achieve the 60 percent fuel self-sufficiency within the targeted five years. Each plant is expected to cost P1.5 billion, which adds up to a total P30 billion in new investments.

Brazil leads the world in the production and use of ethanol as alternative fuel, followed by the US and Canada, China, India, Japan and Thailand.

Reports say that cars built from the 1970s onward can run on fuel with 10 percent ethanol blend with no need to modify the engine, with the added bonus of significantly reduced carbon monoxide emission.

It is also claimed that the 10 percent ethanol blend reduced carbon monoxide by as much as 60 percent. A US study conducted in 2003 by the Argonne National Laboratory showed that ethanol use in the country reduced greenhouse gas emission by an equivalent of 5.7 million tons of carbon dioxide. This is equal to removing the annual emissions of more than 853,000 cars from the road, according to the Internet data.

On the job creation aspect, the Northwestern University’s Kellogg School of Management study on "The Economic Impact of the Demand for Ethanol" showed that some 370 local jobs are created during the construction of an ethanol plant, and the local jobs generated increased to 4,000 during its operation.

It is hoped that more ethanol plants will follow the one that San Carlos Bioenergy, Inc. is building, for the sake of both the economy and the environment.

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President Gloria Macapagal-Arroyo and Vice President Noli de Castro will lead this year’s Alay-Lakad Para sa Kabataan Day, slated on Sunday, September 4. Alay-Lakad Foundation celebrates its 33rd anniversary, with, says AL president Frank Evaristo, the theme, "Kabataan: Isulong ang Kinabukasan." The nationwide activity, as directed by Presidential Proclamation No. 168, will have the participation of government officials, civic leaders and business groups.

The two- to ten-kilometer walk conducted in different parts of the country, is the signature fund-raising project of the Alay-Lakad Foundation; its proceeds will go to educational assistance, skills training and livelihood programs to help out-of-school youth. To date, more than 50,000 out-of-school youth have been given assistance, particularly those in Metro Manila and the lahar-devastated areas of Pampanga and Zambales.

This year’s host civic organization is the Lions International under District Gov. Valeriano Po with Robert Quintana as chair of the National Coordinating Committee for Walk 2005. Donations will be accepted either on the Walk Day itself or at the Quirino Grandstand, Rizal Park after the Alay-Lakad day. For inquiries, call the ALFI National Secretariat Office at 5231539 or 5226134.

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