Sunday, September 23, 2007 Firms set aside P17.1 billion for bio-fuels investment By Bong S. Sarmiento
Demand seen to double in three years
COTABATO CITY -- At least eight companies have committed investments of P17.1 billion in the near term for bio-fuels production as demands are projected to double in 2010 and onwards, an official said.
Marriz Manuel Agbon, president of the government-owned Philippine Agricultural Development and Commercial Corporation, projected that demand for bio-diesel will double to 173 million liters in 2010 and 209 million liters in 2015.
In the case of bio-ethanol, Agbon said that 255 million liters are needed in February 2009 and projected to increase to 565 million liters in 2011 and 721 million liters in 2015.
Bio-ethanol can be sourced from sugarcane, sweet sorghum and cassava.
Agbon said government efforts to lure investors in the bio-fuel industry are making strides that will benefit farmers across the country.
"The bio-fuels industry offers a multitude of opportunities for energy and agriculture that can provide the country with a new level of energy, economic and environmental security," said Agbon, also the Department of Agriculture's focal person on bio-fuels feedstock program.
Through the Agribusiness Lands Investment Center, the government is closely working with investors who signified intention to venture in the development of idle and existing lands for bio-fuels feedstock production.
Agribusiness Lands is a convergence initiative of the Agriculture Department, Department of Agrarian Reform and the Department of Environment and Natural Resources.
As of last month, Agbon noted that eight bio-fuels companies eye the development of 467,000 hectares of land in various parts of the country. Their total investments are expected to bring P12.8 billion for the agricultural side and P4.5 billion for the industrial or processing plant side.
Rainier Pantua, Agribusiness Lands senior project development officer, said the companies investing in the biofuels industry are Bio-Energy NL, Incorporated, E-Cane/Pampanga Industrial Park Corporation, Philippine Agricultural Land Development and Mill, Inc (PALM, Incorporated), and Zambo Norte Bioenergy.
Other companies are Philippine National Oil Company-Alternative Fuels Corporation, Guidance Management Corporation, Fuel, Inc. and Eastern Petroleum.
President Gloria Macapagal Arroyo early this year approved Republic Act 9367 or the Bio-fuels Act intended to reduce greenhouse gas emissions that adversely affect the ozone layer.
Under the law, all diesel engine fuel shall be mixed with one percent bio-diesel blend and increased to two percent by February 2009.
The law also requires that gasoline should have five percent bio-ethanol component by February 2009 and 10 percent by February 2011.
Basing the demand for bio-diesel on the consumption of diesel and the percentage of bio-diesel mandated by the law, Agbon said that 78 million are needed this year alone.
Bio-diesel can be extracted from jatropha curcas or tuba-tuba or coconut.
Sugarcane is presently the most reliable feedstock for bio-ethanol production since its farming technologies are long available in the country.
Agbon urged farmers in the Autonomous Region in Muslim Mindanao to have their lands planted with the needed crops through their own initiatives or through partnership with companies.
Agbon was one of the resource speakers during the recent 6th Armm Business Congress here.
