MANILA, Philippines - Universal Robina Corp. said it has received its first fuel ethanol order from independent fuel company Flying V.
Under the deal signed on December 8, Gokongwei-led URC will supply Flying V with fuel-grade anhydrous ethanol suitable for gasoline blending.
Blending gasoline with at least 10 percent fuel ethanol is in line with the Department of Energy’s bioethanol program.
URC sugar business unit general manager Rene Cabati said the fuel ethanol supply agreement between URC and Flying V highlights 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. This diversification into a higher-value product from a widely available crop in the Philippines will prepare the local sugar industry for Asean integration,” said Cabati.
Tariff on imported sugar across will fall to 5 percent when Asean Economic Community integration starts next year.
URC will supply Flying V from its newly inaugurated fuel ethanol plant in Barangay Tamisu, Bais City in Negros Oriental. The facility has a rated production capacity of 100,000 liters per day of fuel-grade ethanol using sugar molasses generated from three sugar mills in Negros.
URC is also commissioning a 46 MW bio-mass cogeneration power plant in Negros Occidental.
"Both projects guarantee that sugarcane planters will have a ‘home’ for their canes, and sugar farm and sugar mill workers will continue to have jobs, even as we face competition from sugar producers abroad,” said Cabati.
Flying V is the Philippines’ largest independent fuel company, with over 350 stations nationwide.