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PIA Press Release
2006/03/23

Kibawe soon to be ethanol country

by Elaine O. Ratunil

Malaybalay City (23 March) -- British firm Bronzeoak Ltd., through its local unit Bronzeoak Philippines, Inc. (BPI) will construct a P1.5 billion dedicated ethanol plant in Kibawe, Bukidnon.

Bukidnon Governor Jose Ma. R. Zubiri, Jr., announced this during the recent celebration of the province's 89th Foundation Day, adding that BPI has already secured a viable plant site in Kibawe.

The governor's message followed Bukidnon 3rd District Rep. Juan Miguel Zubiri's announcement that construction of the country's second ethanol plant will start this June. A leading advocate of ethanol use, Rep. Zubiri authored the Bio-Fuels Bill which proposed blending gasoline with 5% ethanol within two years after its passage and increasing the proportion to 10% on the fourth year.

The plant, scheduled to be operational by the second half of 2007, is a joint venture of BPI., the National Development Corporation and three groups of sugar planters. It has a capacity of 25 million liters of ethanol per year or a production capacity of 150,000 liters a day.

Rep. Zubiri added that there is a need for ethanol which is extracted from sugarcane, and Bukidnon is one of the identified areas for the intensified ethanol program.

Once BPI starts commercial operations, the plant will boost the livelihood of local sugar-cane farmers, as it will need to tap 8,000 has. of sugarcane plantation to sustain its production.

Majority of BPI's sugarcane requirements will be sourced from the towns of Dancagan, Kitaotao, Kadingilan and Damulog all of Bukidnon. Each ton of sugarcane is estimated to cost P1,700.

Ethanol (ethyl alcohol), the key ingredient of alcoholic drinks, is a high-performance motor fuel that cuts poisonous emissions and is better for the environment. It is made by fermenting and then distilling starch and sugar crops like corn, sorghum, potatoes, wheat and sugar cane. In France, ethanol is made from grapes of insufficient quality for wine production.

Ethanol is usually blended with gasoline at 10%, but can be used at a higher mixture. Brazil, the world leader in ethanol with an annual output of 15 billion liters, blends as much as 24%. Engines can be designed to run on pure ethanol. Henry Ford designed the famous Model T to run on alcohol, saying it is the "fuel of the future". Around 40% of cars in Brazil use 100% ethanol.

The Philippines' first ethanol plant was constructed in San Carlos City, Negros Occidental. (PIA-10) [top]

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