E Cane has started talks to establish a sugarcane plantation within the Crow Valley, Camp O’Donnell in the Pampanga military reservation, site of the former Clark Air Base. The land, covering 60,000 hectares, is recommended as a suitable area for sugarcane planting as sugar mills are traditionally located within Central Luzon including in Pampanga and Tarlac (Central Azucarera Tarlac).

"The company’s official, Monclin Pierre, met with the Sugar Regulatory Administration the other week. They said they have started to acquire tractors (for land preparation for sugarcane planting)," said an industry official.

The ethanol plant may require an investment of P800 million up to P1.8 billion depending on its complexity.

An ethanol plant with a 100,000 to 150,000 liters per day capacity may require a sugarcane land of 7,000 to 10,000 hectares which can all come from the Pampanga area, although the company is also looking at other potential sugarcane sites like Nueva Ecija.

The Bureau of Soils and Water Management is identifying appropriate land for sugarcane planting for those seeking areas for ethanol production.

The company has tapped legal consultants for the registration of the planned ethanol operation since government has issued stricter regulations on the establishment of biofuel plants using food crops like sugarcane as feedstock.