This was divulged by Energy Secretary Raphael P.M. Lotilla as he noted that the company is eyeing its plunge into importation of ethanol; purportedly its kick-off point in heeding the government’s policy direction on the wider utilization of alternative fuels.

The energy chief noted that the message put across by the company would be for it to have committed "to have bigger use of ethanol-based products this year."

Ethanol is an indigenous, renewable and biodegradable fuel that is expected to reduce the country’s dependence on imported fuel, especially when domestic production would already kick in by 2007.

It would be noted that the local subsidiary of Royal Dutch Group has been instrumental in pioneering ventures that promotes clean and environmentally-friendly products, so it does not come as a surprise that the oil firm is taking its big plunge into alternative fuels use.

Its affiliate firm, Shell Philippines Exploration B.V. is one of the major stakeholders in the .5 billion Malampaya deep water gas-to-power project; and it is worth noting that this marked the birth of the Philippine natural gas industry. It is also committed to the seven-year pilot program to introduce compressed natural gas (CNG) among the lines of alternative fuels for the transport sector.

On the other hand, the company also put up its Shell Renewables, Inc., which not only help promote the use of alternative fuel for the power sector, primary with use of solar energy resource; but has also been a key player in the electrification of the remotest villages in the country.

With Shell making firm its commitment to take into ethanol imports for blend to gasoline products, the energy secretary is keenly hoping that the time has already come to finally widen the market base of alternative fuels domestically.

For one, it would be noted that another giant player Petron Corporation already took firm resolve to be among the pioneers in promoting ethanol, though its approach is more anchored in tapping domestically-produced supply.

The company has just recently joined the Philippine Fuel Ethanol Alliance, a public-private sector partnership geared toward establishing a local bio-ethanol industry and promote the use of ethanol as an alternative fuel. Others in the roster of membership are: Sugar Regulatory Administration, Philippine Sugar Millers Association, Sugar Master Plan Foundation, and Center for Alcohol Research and Development.

Petron was the first oil firm to sign up with San Carlos Bioenergy, Inc. (SCBI) expressing intent to be the offtaker of the facility’s entire ethanol production.

SCBI will construct, own and, operate an integrated sugar mill, cogeneration plant and distillery complex for ethanol production in San Carlos, Negros Occidental.

The facility will be capable of producing 100,000 liters of anhydrous ethanol (99.5 percent purity) daily while producing 9.0 megawatts of electricity.

The plant will be fueled entirely from biomass resources particularly sugarcane which is grown in the area. The plant is expected to be operational by 2007.