Investors are seriously considering investing in three more ethanol plants in the Philippines, while the San Carlos Bioenergy Inc. is expected to begin producing about 33 million liters of ethanol a year by the start of 2008.

This was disclosed yesterday by Sugar Regulatory Administrator James Ledesma and National Development Co. general manager Art Aguilar, who stressed that production of ethanol has become even more urgent in the light of rising oil prices.

The locally produced ethanol from sugarcane will be used as a 10 percent additive to fuel to bring down the country's importation cost.

Ledesma said he has spoken to investors, among whom are officials of a Japanse firm, who are seriously considering investing in three more ethanol plants in the Philippines. The plants are being eyed to be built are in Negros, Mindanao and Luzon, he said.

The pressure toward building more ethanol plants is on with the rising prices of oil, Ledesma said.

Aguilar, on the other hand, said the commissioning of the ethanol plant in San Carlos will be in December 2007 and commercial operations are expected to begin in January 2008.

NDC, which he heads, has a 25 percent stake in the plant, while other investors are Bronzeoak Philippines and the Valmayor and Ledesma families of San carlos City, Aguilar said.

The Finnish government and a Singapore environmental fund is also investing in the project, Aguilar added.

The plant, which will operate 10 months a year, is targeted to produce 100,000 liters of ethanol a year or about 33 million annually, Aguilar said.

Aguilar said breaking ground for the San Carlos plant has began and about 1,000 people will be hired for its construction.

The plant will be globally competitive and environmentally-friendly in full compliance with the Kyoto protocol, he said.

Meanwhile, Gov. Joseph Marañon said every time oil prices go up there is a corresponding demand for fare and wage increases but he does not know how far it can be absorbed.

He said while wage increases are needed, they will also have to depend on whether owners of business establishments can afford the costs.*CPG

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