Friday, August 15, 2008

PHILIPPINES' PETRON LIFTS FIRST ETHANOL PRODUCTS

MANILA, Aug 07, 2008 (AsiaPulse via COMTEX) -- Market leader Petron Corporation announced on Wednesday that it finally purchased 23,000 liters of ethanol from Leyte Agri Corp., the first locally-produced fuel grade ethanol, to be used in its E10 Premium gasoline. "We strongly support the local production of ethanol as a gasoline additive since it will drive capital investments in rural areas, create more jobs and more importantly, it will lessen the country's dependence on imported fuel," Petron Chairman Nicasio I. Alcantara said.

Last month, Petron launched its E10 Premium product in selected service stations in Metro Manila as part of its efforts to make available cheaper and more environment- friendly fuels for motorists.

The company's E10 Premium is priced P2.00 per liter cheaper than its 93 octane gasoline.

The use of ethanol in gasoline will also have a positive impact on the environment since it is biodegradable and reduces harmful exhaust emissions added Alcantara.

Leyte Agri Corp., owns the first manufacturing plant in the country able to produce fuel grade ethanol.

Petron E10 Premium is a new specially formulated unleaded gasoline that meets and even exceeds the requirements of the Philippine Biofuels Law. It contains 10 percent fuel grade Ethanol and 90 percent Petron Premium Unleaded Gasoline with enhanced fuel additive.

According to Alcantara this unique additive allows the removal of existing deposits, which results in improved power and fuel economy. The companys introduction of ethanol is ahead of the implementation of the Biofuels Law of 2006.

"The early introduction of our E10 Premium product, ahead of the government mandate, underscores our desire to bring the benefits of ethanol-blended gasoline to our customers and stakeholders as soon as possible," Alcantara added.

Apart from Leyte Agri Corp., Petron also signed a Memorandum of Understanding (MoU) with San Carlos Bioenergy, Inc. (SCBI) in the middle of 2006 to off-take SCBIs entire ethanol production.

SCBI is constructing an integrated sugar mill, cogeneration plant and distillery complex for ethanol production in Negros Occidental. The facility will produce 125,000 liters of ethanol daily. The plant is expected to be operational by the end of this year.

Ethanol is a high-octane, water-free alcohol produced from sugar cane and other crops such as corn, cassava, sweet sorghum. It is used as a blending component at 5 percent-10 percent concentration in gasoline. Unlike fossil fuels, ethanol is virtually inexhaustible since agricultural products can be grown and harvested continually under a sustainable system.

Petron E10 Premium may be used in majority of fuel-injected vehicles without the need for expensive engine modification. The company said that its service station personnel can provide assistance to first- time users who may want more information on the product.

Republic Act 9367 or the Biofuels law mandates a 5 percent bioethanol blend into gasoline by 2009 and 10 percent blend in 2011.

For 2009, the country's demand for bioethanol is seen to reach to 300 million liters per day and 600 million liters per day in 2011.

Because of this projected demand in bioethanol, the country needs 15 to 20 plants. So far, there are only two plants under construction in the country, the San Carlos and the First Bukidnon which are expected to fully commercially operational next year and by 2009 respectively.

(PNA)

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