Poor Negros provinces in the Philippines to become biofuel exporters
MANILA - Ever since colonialists set foot on the Philippines, the south-western 'Negros' island has been considered to be 'backward' and 'uncivilized' - far away from the metropolitan city of Manila. After independence, the island became even more impoverished and relied mainly on the production of cash-crops and forestry. But today, its great potential for the production of ethanol and biodiesel is being recognized, and the island with its 14 million inhabitants is set to leapfrog beyond its historical status of underdeveloped region. According to Rep. Juan Miguel Zubiri - who authored the Philippines "Bioethanol Fuel Act" - the Negros provinces (Negros Oriental and Negros Occidental) will become future exporters of biofuels. During her State of the Nation speech, President Gloria Macapagal-Arroyo yesterday confirmed that Negros will advance the country's energy independence as she outlined a massive bioenergy spending program.
The regional energy market in South East and East Asia is growing extremely fast, with countries like China, India, Vietnam, South-Korea and Japan driving global fuel demand - and given that Negros is centrally located in the region, this is where the provinces will bite.
Zubiri said the ethanol program will increase agricultural productivity in the countrysides as well as reduce prices of gasoline and crude oil at home. Speaker Jose de Venecia added that the bioethanol act will work to lessen the country's independence on imported oil and hasten the search for alternatives to fossil fuels, as crude oil has now breached US$75 per barrel. The people in Negros - who are mainly farmers - are now very excited as the price of sugar and other biofuels commodities is at all time highs.
Crucial for Negros is that it does not merely become a raw biomass producer, but that it can add value by producing the ethanol, biodiesel and biomaterials itself. Precisely to this aim, an integrated biomass-ethanol power plant is being set up in San Carlos City, expected to be completed next year. A special bill that will give incentives to the local biomass producers is currently on the table in the Senate.
The export opportunities for Negros are growing rapidly. Biofuels are now being used in Japan, Malaysia and China who already use a mandated 10 percent ethanol blend with gasoline which would displace about 565 million liters of gasoline, resulting in annual foreign exchange savings of $354 million. If Negros succeeds in capturing 20% of this amount, it would double its export revenue. Hence, the development of a biofuels industry is considered to be a top priority for the province. The potential to lift some of South East Asia's poorest communities out of poverty through the bioenergy program, is considerable.
More information:
The regional energy market in South East and East Asia is growing extremely fast, with countries like China, India, Vietnam, South-Korea and Japan driving global fuel demand - and given that Negros is centrally located in the region, this is where the provinces will bite.
Zubiri said the ethanol program will increase agricultural productivity in the countrysides as well as reduce prices of gasoline and crude oil at home. Speaker Jose de Venecia added that the bioethanol act will work to lessen the country's independence on imported oil and hasten the search for alternatives to fossil fuels, as crude oil has now breached US$75 per barrel. The people in Negros - who are mainly farmers - are now very excited as the price of sugar and other biofuels commodities is at all time highs.
Crucial for Negros is that it does not merely become a raw biomass producer, but that it can add value by producing the ethanol, biodiesel and biomaterials itself. Precisely to this aim, an integrated biomass-ethanol power plant is being set up in San Carlos City, expected to be completed next year. A special bill that will give incentives to the local biomass producers is currently on the table in the Senate.
The export opportunities for Negros are growing rapidly. Biofuels are now being used in Japan, Malaysia and China who already use a mandated 10 percent ethanol blend with gasoline which would displace about 565 million liters of gasoline, resulting in annual foreign exchange savings of $354 million. If Negros succeeds in capturing 20% of this amount, it would double its export revenue. Hence, the development of a biofuels industry is considered to be a top priority for the province. The potential to lift some of South East Asia's poorest communities out of poverty through the bioenergy program, is considerable.
More information:
- Ram Mohan M.P., Philippe Thomas, G.T., and Shiju, M.V. (2006), Biofuel Laws in Asia: Instruments for Energy Access, Security, Environmental Protection and Rural Empowerment. Research and Information System for Developing Countries, Asian Biotechnology and Development Review, volume 8, n°2, pp.51-75.
- Visayan Daily Star: Negrenses are future biofuels exporters, June 24, 2006.
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