Philippine biofuel plants held up by agriculture land-use conversion ban; lawmaker proposes waiver for 25-acre facilities

In the Philippines, Senator Miguel Zubiri said that a two-year ban on the conversion of agriculture lands to real estate use is delaying the implementation of the Biofuels Act. The legislation prevents the conversion of 25 acre locations to biofuel plants.

Other recent developments in the Philippines include:

• A farmers group has launched a pilot malunggay nursery near Naga City. The plant produces moringa oil as edible oil and for biodiesel. The KFCS farmers group was created last year in order to contract with Secura International, an oils broker that announced that it would sign off-take contracts for production from as much as 500,000 hectares. The oil would be shipped to US biodiesel producers

• Basic Energy will construct a 14 Mgy multi-feedstock ethanol plant at an undisclosed location. Project cost is projected at $70 million, and a Taiwanese investor is said to be associated with the project. The plant is projected to come online by 20112, when the Philippines moves to an E10 mandate. The only other project in the Philippines under construction is the 12 Mgy San Carlos Bioenergy plant in Negros Occidental.

• The executive director of the Philippines Sugar Millers Association said this month that the country would import 45 Mgy of ethanol in 2009. He added that the 10 percent ethanol mandate that takes effect in February 2009 will require 52 Mgy of ethanol blending, but that the country at this time has only one 7 Mgy plant in operation.

• Senior Philippine legislator Roilo Golez called on President Arroyo to issue a moratorium on biofuel production, following China’s lead. Golez said that the diversion of food for fuel production “is bad policy in the face of the food crisis.”

• Eastern Renewables Fuels said it plans to expand cassava planting to 4500 hectares in 2008 to meet rising demand. The company ships its output to Guanxi province in China.

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