Eastern Petroleum seeks to raise $30 million for ethanol plant

Eastern Petroleum Corporation (EPC), through alternative fuels development subsidiary Eastern Renewables and Fuels Corporation, is seeking to raise US$30 million from local banks to fund its ethanol plant in Isabela Province. Eastern Petroleum President Fernando Martinez said the plant will have an annual capacity of 30 million liters or 100,000 liters per day and will use cassava as feedstock. “The yield for cassava could average 50 to 70%,” he said, noting that a 100,000 liter ethanol plant will need about 10,000 hectares planted with cassava. The production volume, he added, would be enough to meet the company and other oil firm’s ethanol requirements. Under the law, gasoline sold at the pump should have a 5% ethanol blend, and this will be doubled starting 2011.He said they will begin construction of the ethanol plant by next year, targeting completion by 2012.Martinez added that he is negotiating with potential new partners for the ethanol plant, after negotiations with potential Chinese investors failed. (June 24, 2009)