Negros legislator bats for 15% ethanol in gasoline

A NEGROS OCCIDENTAL legislator urged the government to increase the ethanol blend in gasoline to 15% (E15) from the current 10% (E10), citing supply security and the benefits to the domestic sugar industry.

In a statement on Tuesday, the province’s 5^th District Rep. Emilio Bernardino L. Yulo said raising the blend from 10% to 15% could help cushion the impact of rising fuel prices and support demand for domestically produced bioethanol.

The Biofuels Act of 2006 requires that all liquid fuels for use in motors and engines be blended with biofuels. Since 2012, gasoline has been sold as a 10% bioethanol blend, known as E10.

Mr. Yulo said increasing the blend to E15 would raise the ethanol component and expand the demand for bioethanol, primarily derived from molasses.

“Increasing the ethanol blend from E10 to E15 can create stronger domestic demand for sugarcane-based ethanol and provide a needed market for sugar byproducts at a time when our farmers are under tremendous pressure and the general public is reeling from rising prices,” Mr. Yulo said.

The House Committee on Agriculture had been looking into sugar millgate prices, which recently fell to about P2,000 to P2,100 per 50-kilogram bag, below estimated production costs of roughly P2,500.

In the statement, Mr. Yulo said the Philippines has 14 accredited bioethanol plants with a combined installed capacity of 508 million liters per year, although effective output is estimated at 396 million liters annually.

Around 80% of the country’s molasses supply is also used for ethanol production, according to US Department of Agriculture estimates.

Mr. Yulo said government support will be needed to expand production capacity, including incentives for fuel-grade ethanol. He also said ethanol imports could be considered to supplement supply, provided they do not displace domestic production.

He called on the departments of Energy and Agriculture, along with the Sugar Regulatory Administration, to study the feasibility of increasing the blend and to ensure that any policy shift would benefit domestic producers and consumers. — Vonn Andrei E. Villamiel