The Upper House of Congress (also known as the Senate) of the Philippines has approved the Biofuels Act last Thursday, October 12, 2006. The Biofuels Act is a bill that proposes the mandatory use of biofuels for transport, specifically the use of Biodiesel currently from coconut and Bioethanol currently from sugarcane. Earlier this year, the Lower House of Congress (or the House of Representatives) passed their version of the bill. The two versions will be merged and consolidated in an upcoming bi-cameral assembly.

Industry experts, oil-company participants, consumer groups, and many motorists are waiting in anticipation of the Implementing Rules and Regulations regarding biofuels. The impact of the bill will be tremendous not only economically but also environmentally. For example, gasoline use in the Philippines is projected at 4.5 billion liters annually and a ten percent mandatory ethanol blend or about 400 million liters not only saves valuable FOREX, but hopefully will also improve the air quality in Metro Manila and other urban areas.