Monday, February 12, 2007 Oil firm opts for interim plan under biofuels law
DESPITE the costs, an international oil company is willing to comply with the recently-approved National Biofuels Act.
Chevron Philippines Inc. manager for policy, government and public affairs Mark Andrew Quebral said that despite the short preparation time to comply with the law, the company is willing to implement changes in its products.
The law mandates, among others, the pre-blending of one percent coco methyl ester (CME) or coco biodiesel in diesel-fed vehicles. The Biofuels Act was signed by President Arroyo last month.
“We only have three months, a short time to build dedicated pipelines and tankers,” he said in an interview last Friday in Lapu-Lapu City.
“We’re working very hard to comply despite the costs. We are not against the law, we just wanted more time to prepare,” he said. “It (Complying with the law) is not as simple as changing or converting facilities,” he said.
He added that with or without the law’s implementing rules, which are still being formulated, Chevron will begin undertaking interim measures to “physically blend” in one percent CME in diesel fuel.
Among the company’s plans is to buy CME from local accredited suppliers and blend this at Chevron depots, to comply with the provisions of the law.
Quebral said Chevron, which owns the Caltex and Texaco brands, will eventually put up its own blending plants.
‘Not simple’
“Complying is not simple. We would need infrastructure and logistics,” he said. “But we are working very hard to comply with the law.”
Blending CME is seen as a way to reduce importation of diesel products and mean foreign exchange savings for the country. A one-percent CME blend translates to about 40 million liters of displaced imported diesel or foreign exchange savings of approximately P1.1 billion ($22 million).
Aside from foreign exchange savings, CME also has the potential to improve engine performance and consequently, air quality.
To show its commitment to environmental preservation, Chevron Philippines formed a partnership with Project Seahorse Foundation for the implementation of a marine protected area conservation program of the Danajon double barrier reef.
The project includes coastal law enforcement involving fishing communities, local government and private sector.
Chevron has pledged P3 million for the implementation of the project, which is seen to advance the conservation, sustainable management and equitable use of the Danajon bank fisheries.
“We continue to work with and provide financial support to global and local organizations engaged in efforts to conserve sensitive ecosystems or species,” said Chevron Philippines country chairman Randall Johnson.
Johnson said in interview that Chevron chose Project Seahorse as beneficiary because seahorses are species that indicate clean waters. (LAP)
