SILAY CITY -- President Gloria Arroyo yesterday pushed for the creation of an ethanol corridor in Negros Island from San Carlos in the north to Tamlang Valey in the south.

The President, in her speech at an Infrastructure and Investment Conference of the Central Philippines Super Region at the New Bacolod-Silay Airport here, also noted that the San Carlos bioethanol plant in northern Negros will start commercial operations in October 2008. Ethanol produced from sugarcane and geothermal power that are abundant in Negros are much better for the environment than coal and fuel oil, the president pointed out.

"Investing in vital infrastructures includes building up our environment as a reflection of our commitment to our quality of life. People need to breathe clean air and swim in clean water while we also build manufacturing," she said.

Gov. Joseph Marañon, Presidential Adviser for Western Visayas Rafael Coscolluela, Rep. Ignacio Arroyo Jr. (Neg. Occ., 5th district), Sugar Regulatory Administrator James Ledesma and sugar leaders briefly met with the President at the Bacolod airport on her arrival yesterday to discuss, among others, a proposal to convert the country's current excess sugar into ethanol.

Ledesma said the country currently has 100,000 MT of "D" or reserve sugar.

Sugar planter Mike Hinojales said they are proposing that the country's "D" sugar consisting of 2 million bags be brought to distilleries for conversion into ethanol.

Ledesma said one ton of sugar is equivalent to 556 liters of ethanol.

The proposal to accelerate the production of ethanol with the participation of the sugar industry was submitted to the President by the Confederation of Sugar Producers Associations through Bernard Trebol.

The proposal said its objective is to accelerate domestic production of ethanol using existing production capability of the sugar industry; and to provide partial relief to the sugarcane producers by absorbing excess sugar supply for conversion to ethanol.

The industry will assemble all the "D" quedans that will be used for ethanol production, the proposal said.

The physical sugar representing the D quedans will then be brought to existing alcohol distilleries for conversion to hydrous alcohol based on a tolling method, and all the ethanol produced will be sold to a clearing house and subsequently to oil companies, the proposal said.

The proposal said government assistance would be needed in talking to private alcohol distillers to produce hydrous ethanol, and for financing for a machine to anhydrous alcohol.

However, during the planters dialog with the President she asked how much ethanol would cost a liter if produced at the distilleries and she was told it would be P40, Coscolluela said.

Imported ethanol brought into the country at 1 percent tariff cost P28 a liter, the president said.

She told the ethanol proponents to come up with a more competitive price so it's back to the drawing board, Coscolluela said.*CPG

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