Philippines Have Excess Bio-Fuel Capacity

WASHINGTON - Jun 12/07 - SNS -- Philippine bio-diesel plants currently have excess production capacity to comply with the National Bio-Fuels Law, which mandates the use of a 1% bio-diesel blend this month and a 2% blend within two years, according to a recent report from the U.S. agricultural attache for the country.

RA 9367 also creates the National Bio-Fuels Board (NBB), an inter-agency body headed by the Department of Energy (DOE) Secretary, tasked to oversee the implementation of the country's National Bio-Fuels Program (NBFP).

Specific roles of each department or agency that compose the NBB were recently issued and will take effect this month. Implementing guidelines of the specific and concerned department, however, have not been released. Currently, not all diesel-powered vehicles are using the bio-diesel blended fuel although its use is expected to accelerate once the specific operational regulations are finalized and issued.

Until that time, investors are likely to hold on to investment funds, which could be a reason for possible delays in the completion of several bio-ethanol facilities.

Current awareness by the average consumer on the benefits of the use of bio-fuels is low and for as long as petroleum-fuel is cheaper, resistance to the adoption of bio-fuel use is expected to remain firm. Renewed and recent increases in crude oil prices are expected to enhance increased knowledge about the subject, and consequently, its use.

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