Is the Philippine Ethanol Industry Ready for 2011?

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Written by Sabrina Deparine

Tuesday, 30 June 2009 07:39

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Country: Philippines

In January 2007, President Gloria Macapagal-Arroyo signed into law Republic Act 9367, the Biofuels Act of 2006. This law mandates a 1% biodiesel blend, immediately, and at least 5% ethanol-gasoline blend, by 2009, in the Philippine market. The said blends will eventually increase two years after the law’s effectivity which, in the case of bioethanol, means a blend rate of at least 10% for all gasoline by February 2011.

Image Source: http://mysteryfiction.files.wordpress.com/2008/12/finish-line.jpg , http://images.inmagine.com/img/rubberball/rbv014/rbv0140116.jpg

Image Source: http://mysteryfiction.files.wordpress.com/2008/12/finish-line.jpg , http://images.inmagine.com/img/rubberball/rbv014/rbv0140116.jpg

Prior to the approval and signing of the Philippine Biofuels Act of 2006, there were already two oil companies selling ethanol-blended fuel in the market. The first oil company is Seaoil Philippines. Seaoil has been selling biofuels in the Philippine market since August 2005. The first ethanol-blended gasoline products that were released in the market were the G5 Unleaded and the G5 Extreme Fuel. This was a part of the changes that the company had implemented for their 28th anniversary. Seaoil is said to be the first oil firm in the Philippines to blend and market biofuels.

Shell Philippines, on the other hand, also launched their version of ethanol-blended gasoline, the Shell Super Unleaded E10 even before the Biofuels Act was approved. The Shell Super Unleaded E10 was launched in the market last May 2006. This made Shell the first major oil firm in the country to launch ethanol-blended gasoline in the market. Shell’s decision to launch biofuels in the Philippines is in line with the government’s bioethanol program to promote alternative fuels to motorists and to contribute to the reduction of the country’s dependence on imported oil.

Most of the oil companies in the Philippines actually started offering E10 to the consumers prior to the February 2009 start of the mandate. This is a clear indication of the willingness, interest and initiative of the oil companies to support the use of biofuels. Aside from being environment-friendly, they also saw that the economics behind ethanol-blended gasoline not only made sense but can also benefit the whole country.