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Philippines to set up Combined Sugar, Ethanol Factory

27 February 2013

PHILIPPINES - The Philippines is working on a project to set up a factory around the Murcia and Bago area which will produce sugar, ethanol and electric power.

Enrique D. Rojas, president of the National Federation of Sugarcane Planters who, together with UNIFED president Manolet Lamata, Mike Hinojales and sugar mill fabricator/consultant Mike Smith, met with SeaOil executives Francis Glenn Yu and Stephen Yu at the SeaOil, to ensure sustainability of the sugarcane industry, reports SunStar.

"This move is geared towards ensuring the sustainability of the sugarcane industry when tariffs on imported sugar are slashed down to only five per cent by 2015 and our domestic sugar will face stiff competition from cheaper subsidised imported sugar," Mr Lamata told the newspaper.

The project will develop a sugar mill with a capacity from 8,000 to 10,000 ton canes per day, an ethanol plant between 140,000 and 200,000 liters per day and a steam-powered generating plant which can contribute 10 mega watts to 15 mega watts to the grid.

"The best thing about this venture is that Sea Oil will purchase all the ethanol produced by the plant from molasses and syrup," Mr Lamata told Sun Star.

Pricing for ethanol will follow the index designed by the Sugar Regulatory Administration and the Department of Energy under a mechanism which integrates prevailing oil prices in the computation.

"We will continue working for favorable sugar prices, but the added income from ethanol which has a sure market created by the Biofuels Act and from power generation which our province sorely needs will surely boost the income of our sugarcane farmers," Mr Rojas said.

During off season when the supply of bagasse dwindles, the factory will use firewood, cane trash which is traditionally burned, and other bio-waste materials as alternative feedstock.


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