SABELA, Philippines - In an effort to contribute to the country's bioethanol requirements and to help develop a town in Isabela and its neighboring areas, a consortium, composed of Filipino, Japanese, and Taiwanese investors, is pouring in at least $120 million (approximately P6 billion) for the implementation of a bioethanol project in the province - reputed to be the largest in the country. The business conglomerate is set to construct the large-scale bioethanol production plant in northern Philippines which is said to be the largest biofuel venture in the country. It was learned that the consortium called Green Future Innovations, Inc. would build the 54 million-liter capacity ethanol plant in San Mariano town, Isabela that is expected to be fully operational by 2012. According to Green Future chief administrative officer Alexander Uy, the consortium consists of Japan's Itochu Corporation and JGC Corporation, Philippine Bioethanol and Energy Investments Corporation, and GCO - a Taiwanese holding company. The company is expected to produce ethanol from the produce of an 11,000-hectare sugarcane plantation that it tapped, which is located in and around San Mariano's 30-kilometer radius. For his part, Green Future marketing consultant Erwin Co, who also represents Itochu Corporation, said the plant is also capable of converting wastes or bagasse to electricity in its 19-megawatt power plant - generating a 13-megawatt contribution to the Luzon grid. As this developed, Green Future investors and principal officers had a meeting with President Aquino in Reina Mercedes, Isabela last Friday when he went there to address the National Corn Congress. The group gave the President an account of their project. It was learned that Itochu Corporation and JGC Corporation are interested in large-scale bioethanol and power supply businesses across Asia, but were reportedly drawn to the Philippines because of its Biofuels Law and the Renewable Energy Law. "Among our other Asian prospects, the Philippines is the most advanced in its implementation of a biofuels law. We are glad to be attuned to the market demand, especially as the mandated five percent blend of ethanol in gasoline will climb to 10 percent by next year," Co said. Uy said that Green Future relates to the main objectives of the law, among which is the energy self-sufficiency in the country. "There's great value for a country to be self-sufficient in fuel, even if it's just five percent to begin with. Right now we import 100 percent of our fuel needs, and foreign exchange goes to the rich Middle Eastern nations. Through partnerships like this, we procure ethanol domestically and provide added value for the low-income Filipino farmer," Uy said.
By having a 54 million liter plant capacity, Green Future us expected to be the largest domestic producer, followed by industry leaders San Carlos Bioenergy Inc. (SCBI) with 37 million liters, and Roxol Bioenergy Inc. with 30 million liters, Uy said. A study made by the consortium showed that based from the 10 percent ethanol requirement in the law starting 2011, the country will need 440 million liters. The law allows importation only when shortage arises. "Generating a 15,000-strong employment base in the farm site alone, this project hopes to contribute to the development of San Mariano, which is underdeveloped," Uy said.
