San Carlos Bio Energy Inc., a joint venture of Bronzeoak Philippines Inc. and state-owned National Development Co., is investing P2.281 billion for the production of a bio-ethanol plant that would save the country a total of P8.65-billion worth of imported crude oil in the next ten years.

The project also comes with a cogeneration plant that would produce 8-megawatt power using bagasse to be supplied to the grid. The Board of Investments (BoI) has approved the project on a pioneer status.

Trade and Industry Undersecretary Elmer C. Hernandez, also Board of Investments managing head, said NDC owns 40 percent in the joint venture and Zabaleta with the controlling 60 percent.

The project, the first ethanol fuel project to be approved by the BoI, will be located in the Agro-Industrial Export Processing Zone, in San Carlos, Negros Occidental and will start commercial operation in December 2007 with 183 workers.

According to Hernandez, the entire ethanol production would be sold to Petron Corp. which will market the product.

Hernandez said the project was not only granted pioneer status because it hurdles the P1-billion investment requirement but because of its benefits to the Philippine economy and the environment.

"It has an impact on air quality due to clean air combustion resulting to reduced net carbon dioxide emission, less dependence on imported crude oil and expanded market opportunity for agricultural products," Hernandez said.