PETRON CORP. JOINS PHILIPPINE FUEL ETHANOL ALLIANCE

Tuesday, September 27, 2005

Re-affirming its commitment to use indigenous and environment-friendly fuels, industry leader Petron Corporation formally joined the Philippine Fuel Ethanol Alliance yesterday, becoming the first oil company to become a full-fledged member of the Alliance. The Alliance is a partnership between the private and public sectors aimed at establishing a local bio-ethanol industry and promote the use of ethanol as an alternative fuel. Its members include the Sugar Regulatory Administration, Philippine Sugar Millers Association, Sugar Master Plan Foundation, and Center for Alcohol Research and Development.

Ethanol is an indigenous, renewable and bio-degradable fuel that is expected to reduce the country’s dependence on imported fuel.

“We are honored and proud to be the first oil company to join the Philippine Fuel Ethanol Alliance. We share the vision of the Alliance and believe that the use of ethanol will increase the country’s energy security, protect the environment and spur rural development,” Chairman Nicasio I. Alcantara said.

Last May 30, Petron marked an industry first as it signed a Memorandum of Understanding with San Carlos Bioenergy, Inc. (SCBI) expressing its intention to offtake SCBI’s entire ethanol production. SCBI will construct, own and, operate an integrated sugar mill, cogeneration plant and distillery complex for ethanol production in San Carlos, Negros Occidental. The facility will be capable of producing 100,000 liters of anhydrous ethanol (99.5% purity) daily while producing 9 MW of electricity. The plant will be fueled entirely from bio-mass resources particularly sugarcane which is grown in the area. The plant is expected to be operational by 2007.

Alcantara added that the Alliance is instrumental in implementing the government’s National Bioethanol Program.

“The Alliance is an important catalyst in pursuing the government’s energy independence agenda which is a vital step towards sustainable development,” Alcantara said. “We will definitely play an active role in the organization and we look forward to closely working with all its members.”

Among those present during the induction ceremonies were Bukidnon Rep. Miguel Zubiri, Misamis Oriental Rep. Augusto Baculio, Sugar Regulatory Administrator James Ledesma, Philippine Sugar Millers Association Executive Director Jose Zabaleta and Development Bank of the Philippines Chairman Vitaliano Nanagas.

Ethanol is a high-octane, water-free alcohol produced from the fermentation of sugar and converted starch (corn, potato etc.). It is traditionally used as a blending component at 5%-10% concentrations in gasoline. Unlike fossil fuels, ethanol is virtually inexhaustible since agricultural products can be grown and harvested continually under a sustainable system.