Philippine ethanol projects flounder, despite mandate

Falling oil prices coupled with the economic slump have cast a shadow over the Philippine ethanol industry, with several projects being scrapped for lack of funds. Under the Philippines’ Biofuels Act, which was passed in January 2007, ethanol has to account for at least 5% of oil companies’ total gasoline sales from February 2009, rising to 10% from 2011. With demand guaranteed under the legislation, companies ranging from sugar cane and cassava producers, independent retailers and traders announced a slew of ethanol projects. However, the global economic downturn has caused companies to stall their plans. Basic Energy Corp. has had to shelve plans for two 150,000 to 200,000 liters per day (lpd) ethanol plants while Cavite Biofuels has postponed the construction of a 125,000 lpd plant after the withdrawal of a foreign investor. (February 19, 2009)