Singapore, 30 July (Argus) — The Philippines Energy Department has given approval to import more ethanol, as the country struggles with low domestic production to meet the current ethanol mandate.

“The Philippines is therefore planning to adopt a temporary scheme of ethanol importation until the domestic supply becomes stable,” said energy secretary Jose Almendras at a meeting of the Association of Southeast Asian Nations' energy ministers in Vietnam.

Ethanol output from the Philippines will only reach 80mn l/yr (1,400 b/d), mainly from domestic producers San Carlos BioEnergy and Roxol Energy. A further 50mn l/yr will come from Green Futures' plant when it begins commercial operations next year. But this will still leave the country with a shortfall of around 90mn l/yr to satisfy the current E10 mandate.

The Ethanol Producers Association of the Philippines had earlier opposed a lifting of restrictions on imported ethanol, amid concerns that cheaper imports will threaten the survival of domestic producers.

Nearly all of the Philippines' imported ethanol comes from Brazil. But the Philippines intends to diversify its supply sources and is keen to seek supplies from either Thailand or Pakistan.

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