By E. N. J. David
Energy Secretary Jose Rene D. Almendras told reporters on Friday that discussions center on ethanol importation to meet the 10% ethanol blend by 2011 under Republic Act (RA) 9367 or the Biofuels Law implemented in 2007.
"We’re trying to finalizing the import guidelines to allow the importation. There’s still a question on the appropriate [ethanol importation] tariff that they want on imported ethanol. So that’s going to be under discussions," said Mr. Almendras.
He added that importation will only be allowed based on the extent of output shortfall.
Under section 5.2 of RA 9367, oil companies are required to have a 10% ethanol blend within for years after the law’s enactment, or 2011 at the latest.
Bioethanol importation will be allowed within the period only to the extent of shortfall as may be determined by the National Biofuel Board,
The DoE has said it will seek a the approval of a congressional resolution to allow the importation.
The Ethanol Producers Association of the Philippines could not be reached for comment.
The DoE has noted that current ethanol production is short by 200 million liters to meet the current 5% required blend. Local output is 49 million liters.
By 2011, an additional 68 million liters will be produced by Roxol Bioenergy, Inc., the biofuel unit of Roxas Holdings, Inc., in its plant in La Carlota City, Negros Occidental in the Visayas, and Cavite Biofuels Producers, Inc. in Magallanes, in Cavite province south of Metro Manila.
Meanwhile, Mr. Almendras said benchmark price for local ethanol and imported ethanol tariff are still under deliberation.
"The problem [with benchmarking] is, Brazil [tariff] is definitely very, very low so they can allow importation. I had a discussion with someone who mentioned that Malaysia is also interested in sending ethanol to us. And obviously the pricing of local ethanol is higher…," said Mr. Almendras.
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