TWO LOCAL firms will sign an agreement with South Korean companies to put up two biofuel plants costing a combined $475 million on Sunday during a state visit to Seoul by President Gloria M. Arroyo, an Agriculture official said early this week.
“We will sign two memoranda of agreement on biofuels, one on bioethanol and one on biodiesel [production],” said Marriz B. Agbon, president of the state-owned Philippine Agricultural Development and Commercial Corp.
Mrs. Arroyo will go on a four-day visit to South Korea from May 30 to June 2, which will be highlighted by a meeting with South Korean President Lee Myung-bak.
South Korean biodiesel producer Eco Solutions Co., Ltd. and partner Eco Global Bio-Oils, Inc. will invest $175 million to put up a biodiesel plant capable of producing 100,000 liters of biodiesel per day in General Santos in South Cotabato. Eco Solutions had committed to invest on at least 100,000 hectares to plant jatropha, Mr. Agbon said. “They have [already] planted 11,000 hectares,” he added.
Under the Republic Act No. 9367 or the Biofuels Law of 2006, the government increased the required blend of biodiesel to 2% in February from 1%. As a result, consumption would go up to 110 million-130 million liters from 60 million-70 million liters.
The Biofuels Law also requires that all locally sold gasoline must contain 5% bioethanol, equivalent to 208.11 million liters per year.
The government has accredited 10 producers capable of producing 300 million liters of biodiesel per year, including Chemrez Technologies, Inc. and Senbel Fine Chemicals Co., Inc. Also accredited are two bioethanol producers, Leyte Agri Corp. and San Carlos Bioenergy, Inc.
Meanwhile, bioethanol producer Enviro Plasma, Ltd. and Central Luzon Bioenergy Corp. will put up a 500,000-liter per day bioethanol plant worth $300 million in Clark, Pampanga with sugarcane feedstock from 46,000 hectares of plantation in Tarlac and Pampanga.
Leyte Agri Corp. and San Carlos Bioenergy, Inc. are the only bioethanol producers in operation. Leyte Agri can produce 30,000 liters a day while San Carlos can yield 125,000 liters when full operations start in September.
If bioethanol producers offer good prices, sugarcane farmers might be encouraged to plant, Archimedes B. Amarra, executive director of the Philippine Sugar Millers Association, Inc., said in a phone interview.
“Of course we will prioritize food security. We can come out with regulations to make sure bioethanol producers will have [feedstock] source for their production but our priority will be the supply [of sugar],” he added.