URC seals ethanol supply deal with Flying V

By , on December 23, 2014

Wikipedia Photo
Wikipedia Photo

MANILA – The Gokongwei-owned Universal Robine Corp. on Monday signed a partnership deal for Flying V to provide them with fuel ethanol.

Fuel ethanol is derived from sugarcane, which URC produces to prepare for its commodities business for the decline in tariffs once the ASEAN integration takes place.

URC, in a disclosure to the Philippine Stock Exchange said that the deal aims to support the country’s mission of promoting renewable energy and to sustain the sugar industry.

The agreement was signed last December 8 and it stated that Flying V will get its fuel-grade anhydrous ethanol from URC which the former will use to blend with its gasoline products.

Flying V is the fourth biggest fuel company in the Philippines. It has more than 350 stations across the Philippines. Under the Department of Energy’s bioethanol program, it stated that at least 10 percent fuel ethanol should be blended with gasoline.

“URC fully supports the government’s renewable energy program,” said Rene Cabati, general manager of URC’s sugar business unit.

He added that the agreement between URC and Flying V will also strengthen the Sugar Regulatory Administration’s campaign for a sustainable sugar industry.

“It doesn’t have to be only sugar that we can produce from sugar cane. We can produce fuel ethanol,” said Cabati. “This diversification into a higher-value product from a widely available crop in the Philippines will prepare the local sugar industry for Asean (Association of Southeast Asian Nation) integration.”

URC will get its supply from its newest fuel ethanol plant in Barangay Tamisu, Bais City, located in Negros Oriental.

“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.