By Alena Mae S. Flores

The Energy Department expects a smooth implementation of the bio-fuels program, which requires a 2-percent biodiesel blend and 10-percent ethanol blend for gasoline, starting today.

?All systems go. We do not see any problem,? energy director Mario Marasigan told reporters.

He said the National Biofuels Board, which oversees the Biofuels Law of 2006, saw no problems with the implementation of the higher biodiesel blend.

Oil companies have started selling diesel with 1-percent coco-methyl ester in May 2007. Under the implementing rules and regulations of the Biofuels Law, oil companies are required to increase the bio-diesel blend to 2 percent two years after the effectivity of the law.

The law also calls on oil companies sell gasoline with 10-percent ethanol blend two years after the law?s effectivity. Oil companies have the option not to sell E10 in all pump stations but should replace 5 percent of total gasoline volume with ethanol.

Marasigan said the board would inspect oil facilities next week to make sure that oil companies were complying with the law.

?There is the law and we should follow it,? the energy official said.

The department earlier said it would register five facilities for bio-fuels this year to further promote the development of the industry.

The department said the new facilities would ensure adequate local supply of bio-diesel and bio-ethanol to comply with the mandated higher blend.

?Alternative fuels, being relatively lower-priced than conventional fossil fuels, are currently being developed and most of them are in various stages of utilization. Cleaner and more cost-effective, alternative fuels will become more indispensable to the country?s energy mix,? it said.

Among the local bio-diesel producers to date are Chemrez Technologies, Senbel Fine Chemicals, Mt. Holy Coco and Pure Essence.