Eastern Petroleum inks ethanol deal

Philippine independent retailer Eastern Petroleum has signed a memorandum of understanding (MOU) with China’s Guanxi Estates to build an ethanol plant in the Philippines. The companies are planning a cassava-based ethanol plant with an annual production capacity of 150,000-200,000 metric tons, Eastern’s Chairman Fernando Martinez said. “We are currently conducting a technical study on where to locate the plant. That should finish in five months and we expect to start construction of the plant by early 2008,” Martinez said. According to the MOU, until the ethanol plant comes on stream Eastern Petroleum will export all the cassava targeted as feedstock for the plant to China to be processed by Guanxi Estates. Eastern Petroleum already sells 10% ethanol-blended gasoline at its retail outlets in the country but relies on imported ethanol to meet its demand. (May 23, 2007)