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Saturday, May 13, 2006

Pilipinas Shell explores alternative feedstock for ethanol production

Manila Bulletin
May 14, 2006


Pilipinas Shell Petroleum Corporation is exploring alternative raw material from wastes for the production of ethanol, which is a blend to gasoline productions.

"We need to look for other means of producing ethanol, other than those which are based on plants, like sugarcane or potato so we’re looking at producing ethanol from wastes like straw," Pilipinas Shell Country Chairman Edgar O. Chua said.

He noted that carrying out such plan is still at feasibility and exploratory stage; but he sees great potential in such initiative.

Globally, Shell is already conducting research into technologies that convert agricultural waste to fuel with its Canadian partner, Iogen.

Similarly, the oil firm also formed joint venture with Choren GmBH of Germany for manufacturing biomass to diesel; and just in case, this will be an alternative to the coco methyl ester (CME), which is the blend for diesel products as promoted in the Philippine oil industry.

"Shell in the Philippines in drawing on this international experience," company officials said.

Meanwhile, for the first batch of ethanol shipments for its E10 blend (or a 10 percent ethanol blend to gasoline) on Shell unleaded products, Chua stressed that they had imported supply from Australia.

"For the next batch of our supply, we are eyeing to import from Brazil, he added.

The E10 blend was initially sold in four Shell gasoline stations; but until year-end, Chua said they plan to increase those offering it to around 50 to 80 stations.

Initially, the product is sold P0.50 per liter cheaper at P34.80 as compared to unleaded gasoline without blend at P35.30.

The importation cost of ethanol was pegged at {{MB:DR(ARTICLE:CONTENT):MB}}.60 to {{MB:DR(ARTICLE:CONTENT):MB}}.70 per liter or 0 per ton.

Meanwhile, the Department of Energy (DoE) sees it as a welcome development that finally, a major oil company, has plunged into introducing ethanol on commercial basis for the transport sector.

"The launching of Shell’s E10 gasoline is a welcome response to our recent calls for the use of alternative fuels as a mitigating measure that will soften the impact of high oil prices on the economy and the consuming public," it stressed.

In the country, the possible sources of bioethanol are sugarcane, corn, cassava, and nipa.

Projects already set on the pipeline are the San Carlos Bioenergy project, which will have a production capacity of 100,000 liters per day (or 30 million liters per year) and will be on line by 2008.

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