The National Biofuels Board (NBB) has authorized oil companies to import as much as 184 million liters of ethanol this year to meet government requirements for the mandated fuel blending.

This volume can more than satisfy demand for ethanol, which is estimated to reach 208 million liters in 2009, said Rosemarie Gumera, focal person for biofuels under the NBB vice chairman.

To comply with the Biofuels Act, oil companies to import ethanol because only two ethanol-producing companies have begun commercial operations this year, she said.

The distilleries of San Carlos Bioenergy Inc. and the Leyte Agri Corp. have a combined capacity of only 39 million liters — about 19 percent of the estimated ethanol demand, said Gumera, who also heads the planning and policy department of the Sugar Regulatory Administration.

Beginning 2009, oil companies are required by the biofuels law to blend one percent coco methyl esther (CME) or coco biodiesel in diesel fuel for motor vehicles, and five percent ethanol in gasoline.

The law also mandates an increase in the blending to 10 percent bioethanol in 2011.

According to the Philippine Energy Plan for 2007-2014, a five-percent minimum blend will need 208.11 million liters of ethanol this year and a 10-percent blend will require 460.63 million litersin 2011. Edited by INQUIRER.net