[ Manila Bulletin Online ] November 28, 2008
By MELODY M. AGUIBA
The Philippines has opened its first ethanol plant in Leyte with a P300-million investment with Indian partner Praj for a 20,000 to 27,000 liters per day production.
Philippine Agribusiness Development Corp. (PADC) President Marriz Agbon said Leyte Agri Corp. (LAC) has started operation after converting its sugar mill into an ethanol distillery.
"This is the result of a visit of (Department of Agriculture) Sec. (Arthur) Yap in India last year when they got investment from Praj, a technology provider," said Agbon in an interview.
Praj has put in a P33-million investment in the project as it supplied the distillation column which enables the plant to produce 95 percent ethanol.
LAC has gone a little ahead of San Carlos Bioenergy in becoming Philippines’ first ethanol plant. The San Carlos Bioenergy plant in Negros Occidental is expected produce 100,000 liters of ethanol per day beginning before the end of the year.
The San Carlos plant is a full-fledged ethanol distillery which is being put up from the ground up which is why this is taking a longer time.
Agbon said it has become more attractive for existing mills to also turn their plant into an ethanol producer considering the surplus in the country’s sugarcane production that’s sending price to low levels.
"Right now the sugar industry is facing a challenge of excess sugar production, so ethanol production is a good option for sugar millers.
But in order to ensure food security over the long term when the country has to achieve a five percent level of ethanol production by 2009 as mandated under the Biofuels Act, government has released a joint Administrative Order for the accreditation of biofuel feedstock process.
"This DA order will ensure food security. It has to accredit from which land a feedstock is being produced," he said.
LAC, established in 2001 upon diversification of its parent firm Tao Corp. is a holding company owned by Julio Sy Jr. Tao originally created LAC to produce rectified spirits through its food-grade alcohol distillery with a rated capacity of 20,000 to 27,000 liters per day, operating at 300 days annually.
Tao also produces liquid carbon dioxide for industries with a capacity of 14 metric tons per day.
