There is nothing wrong with the Biofuels Act of 2007. The government should just implement its provisions, local producers of ethanol recently said.
"What happens if the law is amended? If the import restrictions are lifted, without regard to existing producers, how will local business and foreign funders recover the billions invested in these ethanol plants?" the Ethanol Producer’s Association of the Philippines (EPAP) said in a statement.
EPAP was reacting to the call of Zenaida Monsada, director of the Department of Energy’s Oil Industry Management Bureau, for Congress to revisit the biofuels law.
Monsada said local production of ethanol next year will not be enough to meet demand.
She said that if Congress does not amend the law, the country will end up importing most of its ethanol requirement.
This will negate the measure’s aim of reducing dependence on imported fuel.
The Biofuels Act mandates that gasoline contain a 10 percent blend of ethanol by 2001, from the current 5 percent.
The law also mandates that by 2011, all ethanol for blending be locally sourced.
EPAP said easing the biofuel mandate will put the country off track in its search for energy independence and sustainable development.
"This DOE move, if adopted, diminishes the energy independence and climate change mitigation agenda of the country," EPAP said.
"Only the consistent and transparent implementation of the Biofuels Act will increase investments, build more ethanol plants, and supply bigger volumes of ethanol," it added.
EPAP said DOE should strictly enforce the blending requirement and penalize violators. By doing this, the organization said, the government will create a more favorable climate for investments and encourage foreign capital to build the infrastructure for clean fuel.
EPAP urged Monsada to submit to new Energy Secretary Rene Almendras the names of companies that failed to comply with the biofuels law.
"Disclosing violators is the first step to full implementation. Secretary Almendras needs to know the real score from both the supply and distribution side of ethanol so he can make an informed decision on the matter. He should not be misled," EPAP said.
"Local ethanol production, on the other hand, is in its infantile stage. But with strong support, the industry will grow," said EPAP.
Philippine Energy Plan places demand for ethanol this year at 219 million liters, doubling to 416 million liters in 2011.
Total production is estimated at 77 million liters of ethanol or 35 percent of current requirement.
San Carlos Bioenergy has a capacity of 38 million liters; Leyte Agri, 9 million liters; and Roxol Bioenergy, produce 30 million liters.
Total production is expected to be to be only at 77 million liters, or only 35 percent of the domestic requirement for ethanol.
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