Members of the House of Representatives, led by Speaker Gloria Macapagal Arroyo, on Friday moved to strengthen the bio-ethanol industry in the Philippines after they expressed support to the proposal to import molasses to make them more viable.
Arroyo called for a joint oversight hearing with the Special Committee on Visayas Development and the Committee on Energy, presided by Reps. Melecio Yap Jr. of Negros Occidental and Carlos Roman Uybarreta of 1-CARE party-list, after visiting the San Carlos Bioenergy Inc. in Negros Occidental wherein SCBI raised their concerns on the situation of the industry.
“[We] would like to help you and make the appropriate policy that will make a pioneering industry continue to exist. We’re very proud that we are the very first in Southeast Asia to adopt the bioethanol industry…In fact, one of the reasons why I visited you was that I was very happy to find out that you’re still around and you have expanded,” said Arroyo, president of the country from 2001 to 2010.
The panel zeroed in on the proposal of the bio-ethanol producers to allow the importation of molasses to be converted to bio-ethanol and other products for export to enable them to be financially viable.
It was through the efforts of then President Arroyo that made the Philippines the pioneer of the biofuel industry in the entire Southeast Asia to address the high world prices of oil during her time.
In 2006, she signed into law Republic Act 9367 or the “Biofuels Act of 2006,” which directs the use of biofuels to help lower dependence on crude oil and establishes the biofuels program.
Industry members, however, said they had been facing challenges because of the low cost of bio-ethanol in the world market as well as oil prices. They need to engage export of molasses for re-export to give them more sustainable income, they pointed out.
When the House Committee asked Assistant Secretary Leonido Pulido III of the Department of Energy if they could be allowed to export molasses for export, he explained that importing resources, such as molasses and other non-sugar feedstocks, did not have legal impediments as long as the bioethanol products are utilized for exportation.
Rosemarie Gumera of the Sugar Regulatory Agency also said that their agency will not pose any objections to the proposal as long as the by-products are exported..
Arroyo expressed delight over the lack of legal impediment saying all other issues should be discussed and attended to among the concerned agencies.
But she said the SRA should ensure that the biofuels from these imported resources were exported, and not sold locally.
The law mandates that only molasses produced locally for bio-ethanol be sold for the local market.