Philippine Fuel Ethanol Alliance

1
Philippine Fuel Ethanol Alliance

• Strategies and Updates

2
Philippine Fuel Ethanol Alliance Organization

• A loose organization composed of future ethanol
  producers
• Philippine Sugar Millers Association
• Sugar Master Plan Foundation
• Center for Alcohol Research and Development
• Petron Corporation
• Works closely with the Sugar Regulatory
  Administration

3
Position on Issues on Biofuels Bill

• Maintain mandated blend of ethanol 5 within two
  years of approval of bill to be increased to 10
  four years thereafter
• Incentivize production and development of
  biofuels apart from what is stipulated in Omnibus
  Investment Code
• Restore provision on banning harmful additives,
  e.g., MTBE

4
Position on other related issues

• Tariff reduction to 1 for importation of ethanol
  to jumpstart the governments Bioethanol Program
• Increase tariff as soon as local supply is
  available
• Expand areas of production by directing
  investments to lands beyond a 100km radius from
  existing sugar districts

5
Strategies

• Policy Advocacy for passage of Biofuels Bill
• Information and Education Campaign
• Launching and maintenance of www.bioethanol.com.ph
  
• Participation in public forums
• Hosting of symposia to clarify features of
  Biofuels Bill
• Dissemination and publication of information
  materials
• Research, i.e., Policy Study on Sugarcane-based
  Ethanol Program

6
Strategies

• Networking and Liaison with various stakeholders
• Investors
• Farmers
• Technology Providers
• Policy Makers
• Car Manufacturers
• Oil Companies
• Consumers
• Environmental Groups

7
Status of Biofuels Bill

• House Bill 4629 authored by Rep. Miguel Zubiri
  has been passed at the House of Representatives
• Senate Bill 2226 sponsored by Sen. Miriam
  Santiago still pending at the Senate

8
Stumbling Blocks

• Chevron opposing the proposed ethanol mandate
• Car manufacturers, specifically Toyota, raising
  concerns on compatibility with carbureted engines
• Senators countering provision on incentives for
  potential investors
• Tedious legislative process

9
Perspectives

• An ethanol industry will not flourish and be
  futile if the government does not mandate a
  minimum blend
• The mandate and incentives shall drive
  investments into the countryside
• Pushing for the development of an ethanol
  industry should not encroach on existing sugar
  industry instead, it should create more
  opportunities for farmers to diversify their
  products

10
Perspectives

• Sugar industry has become a sugarcane industry,
  suggesting that the crop is a viable source, not
  only for food, but for energy as well
• The sugar industrys paramount concern is
  ensuring that domestic and international
  commitments are met
• The countrys ethanol requirements both at 5
  and 10 -- can be satisfied through improved
  productivity and area expansion