Given anticipated deficient ethanol supply come 2011, the Department of Energy (DoE) is opening its doors for prospective registration of gin-makers who may want to shift their production into ethanol.

That policy direction though is seen thriving only if President Arroyo approves the 20-percent tariff shield being batted for by the nascent ethanol industry. It was gathered that the tax proposal already went through public hearing proceedings with the Tariff Commission and secured the Departments of Energy and Agriculture’s endorsements.

Policymakers have already been told that “unless there is strong government support, investors (foreign or local) will remain reluctant to commit billions of pesos in the Philippine ethanol industry.”

On the propounded production shift, DoE assistant secretary Mario Marasigan emphasized that “gin’’ makers may convert but prior registration with us is a must.”

The energy official added that the department “must ensure appropriate regulation to avoid any potential impact in the industry.”

The ‘‘gin-to-ethanol production shift’’ strategy, when underpinned by favorable tariff protection, is seen as the ‘‘saving grace’’ of the Biofuels Law’s full mandate for 10-percent ethanol blend to gasoline (E10), prescribed for implementation by February 2011.

But if domestic ethanol supply won’t suffice to meet demand, it was noted that oil companies can stick to local sourcing for only 5.0-percent of the mandate by volume; and may prefer to still source additional supply from importation.

Marasigan admitted that total production anticipated on stream by 2011 would “still not be sufficient to meet requirement.”

From the current level of production though, he stressed that this will increase in two years time with the scheduled commercial operation of the country’s third ethanol facility.

By 2011, Roxol Bioenergy Corporation is expected adding 33 million liters supply to the industry. This will augment the capacity already made available by San Carlos Bioenergy Inc. at and Leyte Agricultural Inc.

By then, the industry is seen provided with 183 million liters of ethanol, but this is still way below the 218 million liters projected demand within the timeframe.