STAKEHOLDERS expressed relief on the reports of the possible convening of the National Biofuels Board (NBB) this month to resolve the challenges over the importation of ethanol from Brazil.
Members of the Ethanol Producers Association of the Philippines (EPAP) said “the industry welcomes the government’s move to dialogue with the stakeholders”.
It is a notable move to resolve with finality the non-compliance to the five percent blending and local content mandate of ethanol for all gasoline as prescribed by the Biofuels Law.
In 2006, Congress signed the Biofuels Law to reduce the country’s dependence on imported fuel and lessen the country’s vulnerability to the impact of rising oil prices as well as contribute to the global efforts of reducing greenhouse gas emissions.
United Nations study show 30 percent reduction of pollution when E20 are mixed into gasoline and diesel.
For 2009, the country needs about 220 million liters to fulfill the 5 percent blending mandate, however, the country produces 80 million liters of ethanol.
The remaining balance totaling 140 million liters are imported largely from Brazil.
Last year, the industry conveyed to the Department of Energy its openness to ethanol importation.
It also submitted a protocol to strictly monitor compliance to the blending mandate and regulate ethanol trade by linking all importation in accordance to importers adherence to the prescription of the Biofuels Law.
Tetchi Capellan, executive director of EPAP, explained the industry’s position to stop ethanol importation and withhold the 1 percent tariff rate on imports.
She said: “Unless a certificate is issued by DOE attesting to the full adherence by the importer of the 5 percent blending requirement and compliance to the absorb-domestic-supply-first policy as prescribed by law, no imports should cross the borders.”
“Government must send a clear signal to business,” added Capellan.
EPAP believes the import guidelines must reinforce the spirit of the law and penalize the violators of the Biofuels Law. Likewise, government must convey its decision on the future of the alternative energy program.
About P15 billion were already invested to build local refineries namely San Carlos Bio-energy, Roxol Bio-energy, and Green Futures.
Seven other plants are currently finalizing their financing deals to build the next refineries. All these investors have to be advised soon. They need to be told if government wants them to be part of its energy security agenda, or they should “pack and abandon the program.”
Meanwhile, Capellan said EPAP is hopeful that National Biofuels Board will resolve these policy concerns soon. (MSN/Sunnex)