features
Combating Myths
Seaoil battles misinformation to promote ethanol-blended fuel
His company is a small player in the petroleum industry. But ask Francis Glenn Yu, president and CEO of Seaoil, who his biggest competitor is and he will tell you that it’s not Petron, Shell or Caltex. It’s an imaginary company called Myth and its product is misinformation.
“Filipino motorists have so many myths when it comes to alternative fuels,” Yu lamented. “It’s very hard to convince them that alternative fuels are in fact good for their car.”
Seaoil is one of the small players in the industry leading the way in promoting alternative fuel. Its company slogan – Fuel The Change – is meant to fuel the change in mindset of motorists. Yu believes that once motorists see the value in alternative fuels such as the ethanol-blend E10, then business for Seaoil will definitely improve.
And it is indeed improving. Since they began selling E10 in August 2005, Seaoil has recorded more than 2 million fill-ups of the ethanol-blend fuel. Though having the same price as that of regular unleaded gasoline, Yu said E10 is comparable in performance to super premium gasoline like Velocity and Blaze, which are at least P4 more expensive. And definitely, because E10 is composed of 10-percent biofuel, it is cleaner and cars that use it have less emission.
“People who have tried E10 really felt the difference. You only have to try it once and you will be convinced,” he said.
Wrong Ideas
Yu observed that Filipinos have too many misconceptions when it comes to fuel. In fact, he has found it convenient to carry with him a paper containing answers to frequently-asked-questions about ethanol. His list can be found on this page and most of the myths he enumerated may have come from the not-so-good experience that some Filipinos had with alcogas in the 1980s.
It would be recalled that the Philippines, under President Ferdinand Marcos, came up with an Alcogas Program that promoted the use of ethanol as gasoline replacement. Due to insufficient knowledge, some Filipinos began loading up pure ethanol into their tanks, leading to engine stalling. This became a bad memory that Seaoil is now trying to erase.
Even the Chamber of Automotive Manufacturers of the Philippines (CAMPI) maintains an extremely conservative stand on ethanol. During the AAP-sponsored Alternative Fuels Conference in May, a CAMPI official pointed out that using more than 10% of ethanol would endanger a car’s warranty. In reality, as Yu explained, any car can run to as high as 24% ethanol without modifications.
Apparentlly, the manufacturers just want to be on the safe side. “What they’re saying is, ‘Don’t do this at home.’ Technically kasi, you can make your own ethanol-blend fuel but if you do it by yourself, you risk of overblending. CAMPI doesn’t want to be blamed for anything that resulted from experimentation,” Yu said.
Lessons from Brazil
Yu looks to Brazil as his model for promoting ethanol-blended fuel.
“Brazil started using ethanol-blends in the late 1970s, the same time that we began trying out alcogas. But it never stopped. Now, ethanol provides more than 40% of Brazil’s fuel for transportation. Flex-fuel vehicles, or those capable of running on gasoline or ethanol, grew from less than 1% in 2001 to more than 70% of the new cars today,” he said. (See From Sugar To Fuel story)
Yu believes the Philippines can follow Brazil’s example and achieve the same if the government will support initiatives such as the pending Biofuel Law. His company is now investing in its own ethanol plant that can make 100,000 liters a day. With this plant, Yu expects to lower the price of E10 by P1.50 to P2 per liter. At such price – and with the price of gasoline remaining as volatile as ever – E10 would surely become attractive.
This early, Seaoil has partnered with motorists groups such as the Automobile Association Philippines and the National Association of Filipino Offroaders (NASFOR) to promote E10 use in motorsports. The company is also embarking on a loyalty promo for its customers, with free fuel and a brand new car as prizes.
“Seaoil thrives in an environment like this,” said Yu, who recalls the oil crisis in 1978 when his parents put up Seaoil as an independent oil company. Prior to establishing Seaoil, the Yus were owners of a Filoil gas station at the corner of Taft Avenue and Cuneta Street in Pasay City. Being Chinese, Yu said their entire family believes that crisis brings opportunities and it has been in crises that Seaoil found opportunities to grow into what it is today.
“This crisis is not only a good opportunity for the economy. It is also a good opportunity for our environment,” he stressed.
