The Universal Robina Corp. broke ground Thursday for its US $35 million ethanol distillery plant fronting its URSUMCO sugar central in Manjuyod town, some 50 kilometers north of here, in preparation for the full implementation of the Asean Free Trade Agreement in 2015.
The AFTA, which will bring about a drop in the taxes for imported sugar from 17 percent to only 5 percent, will result in stiff competition for local sugar farmers from imported sugar due to the lowering of tariffs in the Association of Southeast Asian Nations.
In his speech before the officers of planters associations in Negros Oriental, Drilon lauded the URC for its vision in responding to the challenges of AFTA head on. “AFTA is a challenge to the planters’ resiliency and fortitude and should be viewed in a positive light.” Drilon cited the economic gains of the Philippines in the last few months, saying this will sustain the growth of the sugar industry, which is still a sunrise industry.
Drilon also expressed support for the dynamic leadership role of the JG Summit group in the various business niches which they pioneered. “We should have more Gokongweis in the country today!” Drilon said.
URSUMCO General Manager Renato Cabati said the installation of a fuel ethanol production facility, which will produce some 100,000 liters per day or 30 million liters of fuel ethanol each year, is in support of the government’s effort to reduce its dependence on imported petroleum.
The distillery plant will run mostly on blackstrap molasses, a by-product of sugar.
Bioethanol is used to fuel cars in 12 countries. Cabati said that in Brazil, one third of their cars use pure bioethanol as fuel which the remaining two thirds use mixtures of gasoline and ethanol.
In the Philippines, the Department of Energy embarked on a bioethanol program under House Bill 4629 since 2007, which mandates blending gasoline with ethanol.
Cabati cited statistics from their own studies which showed that the mandatory use of fuel ethanol blend will reduce the Philippines’ consumption of imported petroleum by up to 536 million liters a year, roughly valued at US $404 million.
Cabati also assured the public that the plant is adopting the latest trend in distillery operations and is installing the first ever Spent Wash incineration boiler in Southeast Asia which assures of an effective wastewater treatment facility.
This, he explained, is a technology developed and used in India, one of the world’s leaders in distillery operations.
URC has three sugar mills in Negros Island, namely URSUMCO, Southern Negros Development Corp. (SONEDCO), and Tolong Sugar Mill in Caranoche, Sta. Catalina.
Two other mills are the URC Passi in Iloilo, and the Cagayan Robina Sugar Milling Corp. (CARSUMCO) in Piat, Cagayan Valley.
There are three ethanol plants in the country today, located in San Mariano Isabela, La Carlota City, and in San Carlos City, Negros Occidental.
The URC ethanol distillery plant, which is seen to start commercial operations in March 2014, is JG Summit’s first ethanol plant.
In his welcome remarks sent by email to Cabati, JG Summit Chairman Emeritus John Gokongwei, Jr. expressed hope that everyone will work with the same passion and vigor on this ethanol plant.
He said he is proud of what the company’s businesses in Negros have achieved. “This [groundbreaking ceremony] is a truly promising start to this venture,” Gokongwei said.
