Zubiri urges : Go renewables for cheap and clean fuel, power
Ethanol at P34 per liter and jatropha diesel at P35

"Oil prices are not leveling down anytime soon. It is hitting $136 per barrel and moving higher which means a strong possibility of P70 per liter. Just to catch up, gas stations will add another P8 more per liter. And, this means fare increases for public commuters and high transport expenses to businesses. This calls on us to fully support the production of biofuels and their blending into gasoline and diesel and the passage of the Renewable Energy Bill. These will bring economic and environmental benefits," said Senator Juan Miguel Zubiri, main author of the Biofuels Law, yesterday.

"If we produce and blend local bioethanol and biodiesel, we can sell bioethanol at P34 per liter and jatropha diesel at P35. We can't afford to wait for oil prices to bottom out. Oil speculators, producers and traders will make hay. It's our obligation to our people to give them cheap fuel. No one else will."

Zubiri said the local sugar industry can produce "enough ethanol for blending 3 billion liters E85. Today, E85 sells for P39.75 per liter. Since pure ethanol costs P33 per liter to produce locally, it can really lower fuel costs. Right now, E10 is P3 cheaper than premium gasoline which is sold at an average of P56 per liter." (Ethanol-85 or E85 is 85% ethanol and 15% gasoline)

"We can buy E85 at P35 per liter if the law is implemented properly wherein biofuels raw materials are value-added tax exempt as provided in the Biofuels Law," Zubiri explained.

"We have the technology and skills to produce very high quality diesel from jatropha which grows well in poor soil condition - or marginal lands - without ever going into fertile agricultural land devoted to food crops."

Zubiri clarified that the National Biofuels Program will be refined further by a Joint Administrative Order of several departments to identify steps that investors, producers and gasoline stations have to take.

"Rising oil prices also increase our power costs because 50% of our power plants use imported fuel to generate electricity. Suffering from expensive power are homes, manufacturers of consumer products, food processors and service providers. Government operations also will incur bigger expenditures with high-priced oil and power," Zubiri explained.

Zubiri anticipates an "opening salvo of the Second Regular Session in July to include the passage of the Renewable Energy Bill. Renewables are the only viable alternative to expensive power from fossil fuels. Even the big oil companies have launched their own renewable energy arms in wind, solar and geothermal energy."

Zubiri asserted that these biofuel initiatives based on extensive research by the University of the Philippines Los Baños and other State universities and colleges nationwide "should go hand in hand with the promotion of flex-fuel vehicles for public passenger, cargo transport and private use."

Zubiri adds, "Flex-fuel vehicles, or FFVs, are vehicles designed to run on varying blends of unleaded gasoline with ethanol. FFVs can run on pure gasoline, pure ethanol, or any ratio of gasoline and ethanol. If gasoline prices are high, motorists can easily shift to ethanol. Ford Philippines plans to market FFVs locally once the necessary infrastructure is in place, such as the production of local bioethanol."

"Biofuels and FFVs for mass public transport and private use will cut our notorious carbon footprints, give motorists and passengers cheaper fuel and our farmers bigger incomes."

"Biofuels investments by the private sector under the direction of government agencies such as the Energy and Agriculture departments will enable us to lower transport fuel prices while preventing notorious carbon footprints if we shift to biofuels."

"Among the proven biofuels reduction of Green House Gas (GHG) emissions, sugar ethanol exhibits 87 to 96 per cent less GHG emissions versus that of petroleum. It is superior to ethanol made from corn with only 10-20% less GHG emission versus petroleum." (Nature International Weekly Journal of Science. Sugar cane and ethanol: Drink the best and drive the rest, Emma Marris)

The Ford Group Philippines offered a Flex-Fuel Vehicle FFV, a Ford Explorer, fueled with E85 from Seaoil for a demonstration run.

"Ford, Seaoil and my office have actively partnered in various activities since May. We expect to generate enough public interest among drivers and transport operators to shift to biofuels."

"We mandated the use of ethanol blend at 5% within two years after the effectivity of the Biofuels Law in January 2007 and 10% from the third year to 2011. However, there is nothing stopping individuals from using higher percentages of ethanol-blends like E85."

Zubiri said the public was relieved that investments in the pipeline were on track stimulated by the Biofuels Law.

Sugar cane farmers in Cagayan, Isabela, Tarlac, Pampanga, Bicol, Central Palawan, Negros Oriental, Negros Occidental, Iloilo, Antique, Lanao del Norte, South Cotabato, Saranggani, Agusan del Norte, Agusan del Sur, Bukidnon, Maguindanao and Sultan Kudarat expect a stable market for their produce once ethanol production plants are completed.

Biofuels investments in production, distribution and use will benefit from an incentive scheme provided in the Biofuels Law, as follows:

Specific tax rate, zero per liter; Value-added tax exemption on sale of raw materials used in the production of biofuels; Water-effluents, defined as "reuse" and exemption from wastewater charges; and Financial assistance from government financial institutions such as the Development Bank of the Philippines, Land Bank of the Philippines, Quedancor and other GFIs.

The demo-run was held in conjunction with the celebration of the 21st anniversary of the Land Transportation Franchising and Regulatory Board and the launching of SeaOil E85 at the Mall of Asia One Esplanade.

Also introduced in the celebration is the Laguna Biofuels Development Cooperative, a community-based Jatropha Production of the farmers-cooperatives in the 4th District of Laguna in partnership with UPLB, UPLB Alumni Foundation Inc., Office of Sen. Juan Miguel F. Zubiri and the Office of Cong. Edgardo San Luis and with the support of the local government units in the 4th District of Laguna. It involves around 1,000 farmers forming themselves into farmers-cooperatives in the 16 towns of the 4th District of Laguna and with a total potential area of 10,000 has. for Jatropha plantation.