Zamboecozone and Freeport
San Ramon, Zamboanga City 7000
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Renewable News
KOREAN FIRM WILL INVEST $300M IN CLARK BIOETHANOL PLANT
Written by Sabrina Deparine
Tuesday, 26 January 2010 16:34
Page views: 45
A South Korean firm is reportedly investing USD 300 million in a bioethanol plant here in the Philippines. The said plant may be the largest bioethanol facility in Asia and will have the capacity to generate its own power supply.
According to the Philippine Agribusiness Development and Commercial Corp. (PADCC), the investment arm of the Department of Agriculture, the plant will rise in Clark, Pampanga. It will use sugarcane feedstock and has an expected output of 150 million liters per year. If plans will pursue, this will be the biggest bioethanol plant in the country and possibly also the biggest in Asia. The technology and capacity are comparable to bioethanol plants in Brazil.
The project is set to be commissioned in 2012. The plan includes a power generation component that is capable of supplying 40 megawatts of electricity to some consumers in the Clark economic zone.
As of the moment, Philippine officials are mum on some project details such as the name of the Korean investor, saying that the foreign investors prefer to keep a low profile since the project is still in its early stage of development. Central Luzon Bioenergy will be the local partner for this project and will manage the agricultural aspect of production. Its main task is to oversee the sugarcane fields in Pampanga, Nueva Ecija and Tarlac, totaling to around 30,000 hectares.
RP MIGHT IMPORT 150M LITERS OF ETHANOL FOR 2010
Feature Written by Sabrina Deparine
Tuesday, 26 January 2010
17:16 Page views: 11
With the mandate to produce petroleum products with 5% ethanol blend, the National Biofuels Board (NBB) estimates that the Philippines would require 219 million liters of ethanol for 2010. However, local producers cannot supply all of these yet so the Philippine government has no other choice but to import ethanol from other countries like Brazil.
For 2010, the country may have to import as much as 150 million liters of ethanol, mostly from Brazil. This is in spite of projections that local production capacity may double up to 78 million liters as compared to last year. This is still quite far from the 219-million liter ethanol demand.
However, local producers do not have to worry about the competition with imported ethanol. According to Rafael Coscolluela, NBB Vice Chairperson, the estimated 150 million liters of ethanol to be imported is not yet final. This may change depending on local production and availability. NBB actually advises oil companies on the volume of ethanol that they can import to ensure that all domestic output is consumed. The exact volume of ethanol to be imported will be finalized by next week.
For 2009, NBB allowed oil companies to import 184 million liters of ethanol to address the demand of 208 million liters. Although the estimated volume of imported ethanol is lower this year than last year, Coscolluela is still apprehensive about the estimates because local ethanol producers are having difficulties in sourcing out sugarcane for feedstock due to the rising prices of sugar.
Most of us are probably aware that some sectors or retailers are pinpointing to the biofuels industry as the main culprit in the shortage of supply in sugar in the country, citing that sugarcanes are now being used as feedstock instead of processing it to sugar products. However, this report goes to show that the biofuel industry does not have anything to do with the shortage in sugar supply. In fact, local producers are also having a hard time getting enough sugarcane supply. Also, the shortage in sugar supply is not doing the biofuel industry any good as it prompts the government to import more volumes of ethanol from other countries which, in turn, contributes to higher pump prices for ethanol-blended gasoline.
2009 Recap: Biofuels Reduce Worldwide Greenhouse Gas Emissions by 57%
Special Written by Sabrina Deparine
Tuesday, 15 December 2009 09:58
Page views: 79
As the year comes to an end, radio stations and news teams are scampering around to gather the milestones for 2009. Here at BiofuelsHub, we are also doing the same. For 2009, we’ve got some great news for you.
The joint effort of countries around the globe to promote the use of biofuels has paid off. In a new report conducted by S&T Consultants Inc., an internationally-recognized energy and environmental consulting firm, it was revealed that the use of biofuels was able to reduce the worldwide greenhouse gas emissions by more than 50% this year.
The report indicates that biofuel production had reduced the global greenhouse gas emissions by as much as 123.5 million tons. This represents an average reduction of 57% based on the estimated emissions that would have occurred from the production and use of equal volumes of petroleum products.
In addition, it was estimated that for 2009, world ethanol production of 73.7 billion liters was able to reduce greenhouse gas emissions by 87.6 million tons. In terms of biodiesel, the worldwide production of 16.4 billion liters was able to cut down greenhouse gas emission by 35.9 million tons.
According to Bliss Baker of the Global Renewable Fuels Alliance, this goes to show that biofuel production and use indeed plays a crucial role in reducing harmful emission across the globe. As such, biofuels should be at the forefront of the fight against climate change.
We do hope that these figures would encourage more Filipinos to patronize biofuels. After all, this is the least that we can do to contribute to the reduction of emissions and to the fight against climate change.
NEW DISTILLERIES TO SECURE THE FUTURE OF RP BIOETHANOL INDUSTRY
Written by Sabrina Deparine
Tuesday, 08 December 2009 12:05
Page views: 43
Amidst all the recent talks on fuel shortage, it is good to know that new bioethanol distilleries will soon rise here in the Philippines. This is a clear sign that the country can very well ease its dependence on imported oil if only we have sufficient supply of ethanol to produce enough biofuel for national demand.
There are at least four distilleries in the pipeline as of November this year.
Roxol Bioenergy will start works on a bioethanol plant located in La Carlota City in Negros Occidental by the first quarter of next year. The target annual capacity for this is 30 million liters.
Cavite Biofuels Producers Inc. (CBPI) will go full blast in completing and starting operations in their bioethanol facility in Magallanes, Cavite. Target completion date will be 2011. The CBPI plant aims to generate 38 million liters of bioethanol, boosting the local production to 107 million liters.
Two other bioethanol projects are expected to push through between 2010 and 2012. The combined target capacity for these is about 100 million liters per year. The Green Futures Innovation distillery will be constructed in San Mariano, Isabela. It will have a capacity 54 million liters per annum. The other project is spearheaded by the Northern Mindanao Biofuels Corp. which will build their plant in Cagayan de Oro. It has a target capacity of 40 million liters.
Summing it up, the new distilleries will contribute additional 164 million liters to the current 39 million liters of bioethanol being produced by Leyte Agri Corp in Ormoc City and San Carlos Bioenergy in San Carlos, Negros Occidental.
Leyte Agri is currently producing 9 million liters while San Carlos produces 30 million liters. Leyte Agri’s Ormoc plant is the first bioethanol plant in the country, having started its operations mid-2008. It is followed by San Carlos which started operations March 2009. The San Carlos bioethanol plant exclusively supplies to Petron while Leyte Agri supplies to Shell, Chevron and other smaller players in the petroleum industry.
In spite of the total volume of 209 million liters of bioethanol produced by existing and planned distilleries per year, the production is still far behind the 461 million liters required by the country to comply with the Biofuels Law of 2006. According to the law, a 10-percent bioethanol blend across all types of gasoline should be sold in the Philippine market by 2011.
In order to reach the target of 461 million liters, around 14 distilleries are still needed, each having a target capacity of 30 million liters. To date, the country is lagging behind targets so the construction of new plants should already start by early 2010.
Other prospective bioethanol distilleries may rise in various locations like Tarlac, Bukidnon, Zamboanga del Norte, Misamis Oriental and Pangasinan. These distilleries will be utilizing sugarcane feedstock. Other distilleries will use molasses and may be constructed in areas like Negros Occidental and Bataan. Some distilleries opt for the use of cassava feedstock and will soon rise in areas like Zambales, Saranggani, Misamis Oriental and Sultan Kudarat.
Source: biofuelshub.com
FINANCING FOR BIOETHANOL PROJECTS
Written by Sabrina Deparine
Tuesday, 08 December 2009 12:00
The Philippines is obviously lagging behind in bioethanol production. Local production will not be able to supply all the requirements of the mandatory 10-percent biofuel blend that will take effect by 2011.
According to the Department of Energy, forecasts for 2011 say that the Philippines will be needing 460 million liters of ethanol in order to meet the demand. Assistant Secretary and Concurrent Director of the Renewable Energy Management Bureau Mario Marasigan confirmed that the country indeed lacks supply of ethanol to comply with the law. But in spite of this, the National Biofuels Board is not considering any reduction in the mandate because it is confident that the supply needs will eventually be met.
Frankly, the NBB is correct in its assumption that the ethanol supply needs of the country will be met. The lack of local ethanol supply is a temporary problem because the Philippine government can very well help in boosting ethanol production. For instance, there are a total of 19 ethanol-related projects in the pipeline but only four of these are in advanced stages and will be operational in the next four years. . The other projects are still in early stages, mostly focused on raising financing, which is the biggest challenge for any ethanol project. Feedstock, whether non-edible or edible, is not a problem since the Philippines is rich in agricultural resources. In a study conducted by the U.S. Agency for International Development (USAID), it was cited that the country has sufficient feedstock capacity to produce more than 1 billion liters of ethanol. This is much more than the required volume of 460 million liters for 2011.
While there is a long list of interested local and foreign investors, mostare very cautious to invest their money due to the perceived lack of firm and established policy support from the government. The construction and operation of a bioethanol plant is very challenging and expensive, costing on average about P3.5 billion to complete. Since previous policies called for lenient duty on imported ethanol, this, has made the competition a bit unfair for local producers. Imported ethanol currently has a duty of 1%, down from the original level of 10%.
It is good to hear that there are new incentives now in place to promote the bioethanol industry to investors. These incentives are: for include zero specific tax on locally produced bioethanol; VAT exemption; exemption from charges on wastewater effluents; financial assistance from government institutions; and pioneering status under the Board of Investement’s Investment Priorities Plan. There are also other additional benefits like duty-free important of machinery, equipment and materials during the first 10 years; seven-year tax holiday; corporate tax rates of 10 percent on net taxable income after the seven-year tax holiday; cash incentive of 50 percent of the universal charge for power needed to service missionary areas; net operating loss carry-over during the first three years of commercial operation deductible from gross income for the next seven years of operation; and special realty tax rates of not more than 1.5 percent on equipment and machinery, civil works and other improvements. Furthermore, there is a move to bring back the duty on imported ethanol to at least its original level of 10% if not increase it even further to 20%.
BiofuelsHub commends the government for these incentives. We know that the Philippine government does not have sufficient capital to help private entities construct and operate their bioethanol plants but the DOE can put its executive power into action so they can stimulate the market as well as attract foreign investors .
Source: Biofuelshub.com
THE AFTERMATH OF EXECUTIVE ORDER 839
Feature
Written by Sabrina Deparine
Monday, 16
November 2009 10:11
Page views: 111
In recent weeks, the Philippine oil industry as well as Filipino motorists went through what might have been described as a “rollercoaster of emotions”. As an aftermath of two calamities brought about by typhoons Ondoy and Pepeng, the government devised and implemented Executive Order 839 (EO 839).
EO 839: A Brief Overview
Executive Order 839 is an oil price freeze order that prevented oil companies from increasing their gas pump prices in Luzon and instead, maintained these at
October 15 levels. This move is supposedly an affirmation of the companies’ corporate social responsibility. Since it was an Executive Order, oil companies had no other choice but to follow even if the government had earlier said that compliance to EO 839 will be voluntary. According to Secretary Eduardo Ermita, EO 839 authorizes both Justice and Energy Departments to file charges
against “stubborn oil firms” which fail to comply with the order.
When this news first broke out, Shell Philippines Country Chairman Edgar Chua was already quoted by the Philippine daily Inquirer as saying that oil companies do not have any other option but to cut down their prices in the Luzon area back to their October 15 rates. While on the surface this seems like welcome news to Filipinos, EO 839 has had some serious implications both to investments and to the supply of petroleum products in the country.
The Impacts
All oil companies have warned the government of “possible supply shortage” since they had to cancel their oil imports which were purchased at higher prices. Last week saw this “prediction” coming true. Last Tuesday, reports of fuel shortages in three provinces started pouring in..
Gasoline stations from Lucena City in the Quezon Province to Albay in Bicol reportedly started to put up signs saying “Out of Stock” on their gas pumps. Even Batangas, where several oil companies have put up and maintain their depots, was not spared. Gas stations in the area are closing shop at around 10 p.m. to save up on their supply instead of going on their usual 20 to 24-hour operations.
Motorists were not the only ones affected by this fuel shortage. Farmers, who also rely on diesel to power their farm equipment, were also affected since they could not harvest their crops without the aid of these machineries.
Additionally, both businesspeople and employees in the oil industry also felt the unfavorable impact. Cutting down the prices affected the revenues of gasoline stations and oil companies and since they had to close shops due to
lack of supply, the salaries of gas station employees were also adjusted to cover shorter working hours. Hence, they also complained of not having enough income to take home to their families.
Government to Lift EO 839 on Monday
After giving much defense and conviction to continue implementing EO 839, the Philippine government has finally consented to lift this order on Monday,November 16.
ANC’s Business Nightly ran some interviews with oil company officials last Friday who were asked about their plans as soon as the executive order was lifted. Ernst Wanten, President and Managing Director of Total Philippines, said that oil prices might increase by as much as PHP 5.00 per liter but they have committed to implement the increase on staggered basis.
Frankly, a lot of local and foreign investors had criticized EO 839 from the start but the government insisted that this was needed since the country, particularly Luzon, was declared under a state of calamity. As such, a price cap should be implemented on basic commodities including oil. I’m sure a lot of Filipino motorists were also happy when the announcement on EO 839 was first made since this meant they could save on gas prices. However, based on the impacts that we have seen and experienced, was EO 839 really worth it? Was it helpful to the Filipinos, considering the fuel shortage experience that we had
last week? I personally don’t think it was very helpful especially since we still have to shoulder huge price increases in the near future. We may have been able to save up on gas prices the past few weeks but with the impending increases, it seems that we would still end up spending the few pesos we saved
on fuel in the next few days.
Source: Biofuelshub.com
Ethanol’s Future Looks Bright in the PhilippinesWritten by Sabrina Deparine
Monday, 12 October 2009
The future of ethanol in the Philippines looks bright after all in spite of the various bad publicities that the E10 gasoline has been receiving in the past few weeks.
Based on the forecasts made by the Ethanol Producers Association of the Philippines (EPAP), the local ethanol supply is expected to reach as much as 83 million liters by 2010. This figure is more than 50% higher than the government estimate of only 50 million liters.
According to EPAP Director Tetchi Capellan, the supply is expected to come from local ethanol producers like San Carlos Bioenergy Inc. which can produce 40 million liters per year; Leyte Agri Corp. which manufactures 10 million liters per year; and Roxol Bioenergy which has a capacity to produce 33 million liters per year. Another producer, Cavite Biofuel Producers, Inc is expected to start commercial operations by 2011.
EPAP’s move to clarify the estimated ethanol supply for 2010 is commendable. It is important to make the right forecast on the supply of ethanol for next year because this will form the basis for the volume of imports that the National Biofuels Board (NBB) will permit in order to comply withthe mandate of the Biofuels Act of 2006. This, in an indirect way, gives protection to local ethanol producers.
By 2010, the Philippine market will still be offering 10% ethanol-blended gasoline (E10)alongside regular gasoline. Initial estimate of the country’s requirement for 2010 is at around 219 million liters. Following the estimate given by EPAP, the NBB should only allow an import volume of at most 147 million liters of ethanol. However, if the NBB follows the estimate given by the government, they will allow an import volume of as much as 180 million liters, to the detriment of locally produced ethanol, especially since oil companies may prefer to purchase imported ethanol rather than local ethanol if the price difference is insignificant.
EPAP is intensifying its campaign to push the government to immediately review and make the necessary changes in the policies governing ethanol trade. Through transparent, proactive and fair policies, the government can give the necessary support that will ensure a stable and strong
NipaTech Employees get Relief Fund
October 2009
In times of emergency, the employees of NipaTech Energy are able to use a special internal program to help them get through a time of crisis. Any employee with a life threatening or urgent need for funds, can apply for immediate assistance from the relief fund set aside for these special needs.
During the recent floods in Manila, the CEO and founder, HR Paddock, set a fund set aside to give relief to the members of the NipaTech family of employees who suffer unexpected consequences. The money is loaned at no interest to the borrower and is repayable according to the ability of the individual.
Some success stories so far:
A female employee whose three year old son contracted Rabies after being bitten by a stray dog needed money for hospitalization but was denied admission for financial reasons. Her son was already showing symptoms of the disease and was becoming critical. NTE’s assistance program stepped in immediately after finding out what was happening and got the small boy the care he needed to survive. He is now well and fully recovered.
The daughter of another employee who lived in Manila was devastated by the recent Typhoon Ondoy where the whole family lost everything and they were stuck on the roof of their home for a week with no food or water. When NTE management learned of this, the relief fund was immediately used to get the family out of the area and to safety in Davao City.
This from the founder on creating the fund; “We are proud to employ the best people in the world, we will do everything we can to protect and enrich the lives of those around us and those of our NTE family. This relief fund will set our minds at ease knowing there is a way to get through the tough times so we can enjoy the good times with all our loved ones around us.”
NTE Staff
To the Flood Victims and the Filipino People
The tragedy that has befallen the Filipino people especially in the typhoon-affected areas in Metro Manila and other parts of Luzon has been noted with great sadness and a deep sense of disbelief.
On behalf of the NipaTech Energy (NTE) family, we wish to convey our deepest condolences and heartfelt sympathy to all the families with members whose lives have been so tragically cut short. Our prayers are with the Filipino people and the Philippines during this sad and difficult time.
the NipaTech Energy Team
PHILIPPINES: Sugar Regulatory Administration drafts plan to allocate sugar to be used as ethanol
09 November 2008
Sector: Policy
A plan has already been drafted by the Sugar Regulatory Administration to allocate sugar for bioethanol production, Business World reported on its online site.
According to SRA Administrator Rafael Coscolluela, selling raw sugar to biofuel producers is one of the options to make use of surplus sugar.
According to the plan, SRA will match biofuel producers with sugar millers and planters for the purchase of sugar as feedstock.
The plan, to be finished by yearend, will be implemented next year, Mr. Coscolluela added.PHILIPPINES: Law that would identify idle lands being pushed by the Agriculture Secretary
08 November 2008
Sector: Policy
The immediate passage of the Land Use act that would identify areas to be planted with biofuel crops has been pushed by Agriculture Secretary Arthur Yap, Business World reported.
According to him, this is something that must be prioritized to identify millions of hectares of underutilized or idle lands that will be planted with jatropha, cassava and sugarcane.
Earlier this year, the House of Representatives together with the Department of Interior and Local Government and the University of the Philippines, agreed to join forces to work for the ultimate enactment of a Land Use Code. The code will serve as a guide for the judicious and appropriate utilization of the country’s land resources.
The law will recognize lands for protection, production, settlements development, and infrastructure development.PHILIPPINES: Senator Zubiri foresees good market for biofuels in 2009
21 November 2008
Sector: Market
Biofuels could turn up to be more profitable for farmers than selling raw sugar, Sen. Juan Miguel Zubiri urged sugar planters in Western Visayas, an online site posted.
Zubiri wants farmers to focus exclusively on sugar production saying that sugar cane producers and planters should go into biofuels production.
Zubiri foresees that by next year, a 300 million liter demand for biofuel derived from sugar and urged them to form cooperatives and put up biofuel plants.
Zubiri stressed that the challenge which farmers in Capiz and Iloilo is to produce enough biofuels and forestall the scenario wherein the country still has to import biofuels from other developing countries like Brazil and Thailand which have made strides in biofuel production.PHILIPPINES: Seaoil sees growth in biofuels sales on 2009
11 November 2008
Sector: Market
Anticipating the growth in local demand for biofuel, Seaoil Philippines Inc. said it will increase its total number of filling stations from 114 to 500 units by 2011, an executive said.
Biofuel is an alternative fuel that blends natural substances like ethanol from sugar cane and coco methyl ester (CME) from coconut to regular gasoline and diesel.
Seaoil Philippines expects to grow their number of stations by 300 percent because of the anticipated increasing local demand following the signing of the Biofuels Act in 2006, which will become effective in February 2007, said Art Cruz, marketing director of Seaoil Philippines.
The Biofuels Act mandates that 5 percent of the annual volume of gasoline fuel sold and distributed by each gasoline company in the country will comprise bioethanol. This will be required two years after the effectivity of the law or starting February 2009.
Other News
July 2009 - Harry took two weeks at New Era Metal Fabricators Inc. (NEMFI) to get the first processor, BEP1 Up and operating.
April 2009 - This was a big month for us getting the ground work laid toward full production with a trip to Surralah to talk to sugar farmers and interviewing various engineering companies for the first production unit.
December 2008 - Many visits to the Gov't offices in Manila with the CEO and Directors, Ms Cipriano and Ms DeVera. Founder HR Paddock had a chance to meet with the administration of the Ecozone for very good discussions.
October 2008 - NTE operations begin with the hiring of Directors Cipriano and DeVera. We are excited at the prospects of our new company.
2007 - 2008 - HR Paddock has an idea for making renewable fuel easily and cheaply using methods borrowed from across many industries. He tries them in the lab and ... it works!
Zamboecozone and Freeport
San Ramon, Zamboanga City 7000
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