Fuel Inc. and a potential partner, Far East Alcohol (FEA), are scheduling plant visits at Rusni Distillery in India as part of a feasibility study to put up an estimated 100,000 liter per day plant.

Fuel Inc., led by oil distributor Seaoil, may partner with FEA which already has a distillery in Apalit, Pampanga. Seaoil is aggressively accelerating the construction of an ethanol plant as it is already distributing E10 (10 percent ethanol with gasoline) in its 107 outlets nationwide.

Fuel Inc. also eyes ethanol plant sites in Misamis Oriental and in Negros Oriental potentially with the Araneta Group.

Another biofuel investor, Philippine Ethanol Corp. (PEC), is embarking on a three-season field testing of sweet sorghum in six sites to test productivity of the biofuel crop.

PEC had completed a first season trial of sweet sorghum in six sites. These include Carpenter Hill in General Santos and in another site in General Santos; Koranadal, North Cotabato; South Cotabato and; Sultan Kudarat.

"They got a good harvest on the first trial, but they want to test it on off-season," said Heraldo Layaoen, vice president and sweet sorghum project leader of the Mariano Marcos State University (MMSU), in an interview.

Jose Custodio of the PEC said the company aims to pursue investments in a biofuel plant once the company will have established the technology on producing sweet sorghum in identified sites.

"We’re talking to manufacturers and distilleries. We plan to do both (feedstock and ethanol production), but we’re still studying the technology," Custodio said.

PEC, owned by Ambassador Benedicto Yujuico, reaped 70 metric tons (MT) of sweet sorghum cane per hectare. This is a yield comparable to earlier tests done in Ilocos by MMSU and the International Crop Research Institute for the Semi Arid Tropics.

However, it is trying to raise sweet sorghum sweetness, also measured in brix, although the rains in Mindanao apparently has negative effect on sweetness.

But PEC has reportedly achieved a good fermentation rate for sweet sorghum at 96 to 98 percent which is almost "complete" fermentation. This was said to exceed the fermentation quality in its molasses feedstock.

Custodio said the company is aware that San Miguel Corp. (SMC) may be interested in ethanol production. But while SMC may be a potential partner in an ethanol plant, any serious negotiation has yet to start.

It is estimated that investment in an ethanol plant will need $ 9 million for a 40,000 liter per day capacity and $ 8 million for a 100,000 liter per day capacity.