Petron open to partnership for importation of ethanol
MANILA – Petron Corp. is willing to partner with other oil companies for possible importation of ethanol blend, which is mandated under the Biofuels law.
“We’re willing to work with anyone, if it makes economic sense. It’s not right to say we will not co-import just because it’s Shell. But the bottom line is if there is a need to import, and it looks like there will be a need to import, what makes the most sense is what Petron will do, “ Petron president Eric Recto said in a report of the Philippine News Agency.
The Biofuels Act mandates all oil companies to increase ethanol blend by 10 percent next year, however, due to lack of supply, oil firms are unlikely to comply to this.
The law also allowed importations of ethanol in the first four years but by 2011 oil companies are mandated to source all their ethanol requirements domestically.
But the Independent Philippine Petroleum Companies Association said domestic producers could not accommodate their demands and that prices are expected to go up.
We’re not producing ethanol, we’re encouraging. We announced before we would welcome entering into contracts with ethanol producers. We need to ascertain supply otherwise we will be penalized by the Government if we can’t comply with the 10 percent. We have one and we’re hoping others will come up,” Recto said.
Currently, there are three ethanol plants producing alternative fuels derived from sugar. These are San Carlos Bioenergy Inc., Roxol Bio-energy, and Leyte Agricultural.
Three more companies are expected to come on-stream by 2011 — Green Futures Innovation in Isabela, Pampanga Biofuels in Floridablanca, and Cavite Biofuels in Magallanes.
