Ethanol plant opens in Leyte

ORMOC CITY, Philippines — The Leyte Agri Corp. (LAC) has started operating its P350-million ethanol plant here that is designed to produce 300,000 liters of biofuel a month. Agriculture Secretary Arthur C. Yap, who led the opening of the plant last Friday within the company’s alcohol distillery complex in Barangay Ipil, said oil refiner Petron Corp. has started buying ethanol from LAC. Alejandro Barin, LAC chairman, confirmed that Petron sources ethanol from LAC for its unleaded E10 fuel. E10 is a mixture of 10% ethanol to 90% gasoline. He added that Flying V also buys ethanol from LAC for its ethanol-blended gasoline, which was launched last week in its service stations in Luzon. "We’re moving forward to biofuel ethanol. The company wants to support the government in its program on alternative fuel, safe environment and economic growth," Mr. Barin said. Another plant, located in Negros Occidental and operated by San Carlos Bioenergy, Inc., is targeted for commissioning later this year and is scheduled to start commercial operations in January next year. San Carlos Bioenergy, a joint venture of Bronzeoak Philippines and National Development Corp., plans to produce about 125,000 liters of ethanol daily. "All eyes are in San Carlos City but it is still few months away. Here, Petron is already buying from Leyte Agri. We have to recognize that this is the first in the country," Mr. Yap said. Mr. Barin said LAC invested P50 million for the distillation equipment and another P300 million for the rest of the facility. The plant relies on around 56,000 hectares of sugarcane plantations across Ormoc City to feed its processes. LAC has been producing food-grade alcohol since 2001. Its facility here produces eight million liters of alcohol a year. — Sarwell Q. Meniano, BusinessWorld