The country’s oil companies will need at least 400 million liters of ethanol to comply with the 10 percent (E10) blend set for implementation at the gas pumps starting February 2011.

That was the estimate given by the Oil Industry Management Bureau of the Department of Energy (DoE), basing it on the fact that the industry’s requirement for E5 (five-percent blend by volume) was already at roughly 200 million liters.

One year prior to the mandate’s implementation though, the industry is still hobbled as to how it should source the supply – whether the domestic ethanol producers would be able to keep pace with demand or importation will still play the part for the mandated higher blend.

There have been reports of 150 million liters of ethanol importation this year, given that domestic production can’t still support the needs of the industry.

In an interview with reporters, Energy assistant secretary Mario Marasigan indicated that he is hopeful of domestic supply getting shored up before the E10 mandate’s implementation.

He cited the potential of ethanol projects which recently sought accreditation with the energy department.

“There are signals from private companies that they can produce enough capacity by 2011,” the energy official stressed; adding that if there would be some prospective changes in policy direction, the government upon the endorsement of the National Biofuels Board (NBB) will have to decide on it at least three months prior to the implementation of the mandate.

“Most probably, the maximum is three months before February 2011 that the government must have a decision based on the local capacity. But as you have seen, there are ethanol contracts we’ve approved for accreditation, this will add on as new capacity for ethanol,” Marasigan emphasized.