Universal Robina Corp., the food manufacturing unit of the Gokongwei Group, said it has received the first fuel ethanol order from oil distributor Flying V.
URC said it would supply Flying V with fuel-grade anhydrous ethanol, suitable for gasoline blending under an agreement signed on Dec. 8.
Flying V is the Philippines’ largest independent fuel company, with over 350 stations nationwide.
The Biofuels Law of 2006 mandates a 10-percent ethanol blend for gasoline (E10). The Energy Department also directed oil companies to purchase ethanol from local producers before resorting to importation.
URC sugar business unit general manager Rene Cabati said in a statement the fuel ethanol supply agreement between the two companies also reinforced the Sugar Regulatory Administration’s drive for a sustainable sugar industry through diversification.
“It doesn’t have to be only sugar that we can produce from sugar cane. We can produce fuel ethanol,” said Cabati.
“This diversification into a higher-value product from a widely available crop in the Philippines will prepare the local sugar industry for Asean integration,” he said.
Tariff on imported sugar will fall to 5 percent when the 10 members of the Association of Southeast Asian Nations are integrated into an “economic community” next year.
URC will supply Flying V ethanol from its newly inaugurated fuel ethanol plant in Barangay Tamisu, Bais City in Negros Oriental.