1. Implementing Biofuels Programme in the Philippines Mario C
Implementing Biofuels Programme in the Philippines Mario C. Marasigan Director Energy Utilization Management Bureau Department of Energy
Good afternoon ladies and gentlemen, in behalf of the Alternative Fuels and Energy Technology Division, I would like to present the Divisions Program on Biofuels. But before anything else may I first give very brief backgrounder about the Division. The Alternative Fuels and Energy Technology Division or AFETD in short is the youngest among the 3 units under the EUMB. AFETD was created in 2002 under the re-strengthened or re-organized DOE which is mandated to formulate policies, plans and programs related to new and advanced energy technologies and alternative fuels development towards a socially and environmentally responsive and effective utilization of energy resources.

3. Alternative Fuels Program
To achieve energy independence and fuel diversification while meeting environmental challenges through the utilization of alternative fuels
Coco-methyl Ester (CME)
or Coco-Biodiesel
Jatropha Curcas
“Tuba Tuba” or “Tubang Bakod”
Ethanol
Hence, in pursuit of those goals and target, the AFETD has developed an aggressive Alternative Fuels Program that aims to…..
Others
(autogas, hybrid, EV)
Natural Gas

4. PHILIPPINE ENERGY PLAN FRAMEWORK
MACRO-ECONOMIC GOALS
Economic growth
Poverty alleviation
Market-based industry
Ensure more sufficient, stable, secure, accessible & reasonably priced energy supply
Pursue cleaner & efficient energy utilization & cleaner energy technology applications
Cultivate strong partnership & collaboration with key partners & stakeholders
Empower and balance the interest of the energy publics
ENERGY SECTOR GOALS
The PEP is the energy sector’s blueprint to support the government’s thrusts of balanced economic growth, market-based industry, and social equity thru poverty alleviation and good governance
The DOE is mandated to ensure a stable, secure and affordable supply of energy. To achieve this, the DOE is intensifying the development, exploration and use of our indigenous energy resources.
The increased utilization of cleaner and efficient fuels will be pursued such as geothermal, natural gas, other renewable energy and alternative clean fuels and technologies. In cooperation with DENR, we will implement the provisions of the Clean Air Act especially on the fuel quality. DOE will optimize and promote the use of renewable energy and alternative fuels for non-power uses.
DOE will create a conducive environment for the stakeholders for the energy sector to encourage private investments in exploration, power, clean technologies and downstream activities.
Lastly, the Department will enhance public awareness and involvement on energy related issues through feedback and public forum consultations.
Energy Sector Objectives and Goals
Ensure sufficient, stable, secure, accessible and reasonably-priced energy supply
- Average self-sufficiency level in the next ten years to reach 55% by 2013
- Wider access to reliable supply of electricity (100% barangay electrification by 2006 and 90% of households by 2017) and petroleum products (50% increase in outlets outside Metro Manila)
- Setting of policy directions that will establish the conditions for fair business practices in the energy sector
Pursue cleaner and efficient energy utilization and clean energy technology applications
- Emission avoidance of 32,000 Gg CO2 by 2013
- Generate energy savings of MMBFOE from energy efficiency programs
Cultivate strong partnerships and collaboration with key partners and stakeholders
- Increase/encourage private investments in the following sub-sectors: upstream and downstream activities, power and clean fuels/technologies
- Increase public and private sector participation in policy formulation and implementation
Empower and balance the various interests of the energy publics
- Enhance awareness and involvement of the general public on energy-related issues and concerns and safeguard consumer interest

5. ENERGY SUPPLY AND DEMAND

6. POTENTIAL FUEL DISPLACEMENT
Coco-Methyl Ester (CME) or “Coco-Biodiesel”
Scope
Blend
Diesel Displacement (million liters)
FOREX Savings
(million US$)
Government 1%
0.882
0.42
Nationwide 40 22 2%
111 61
Bioethanol
Blend
Gasoline Displacement
(million liters)
FOREX Savings
(million US$) 5%
255
160
10%
565
354

7. COCO-BIODIESEL PROGRAM
WHY COCO-BIODIESEL?
Economic benefits to the coconut industry
Provide and establish long-term sustainable alternative domestic market
Increased income for 3.5 million coconut farmers
Potential improvement in the income of 25 million Filipinos dependent on the coconut industry
Economic benefits to the country
Enhance energy independence
Indigenous renewable resource
Reduction in diesel fuel importation
Forex savings

8. FACTS ABOUT COCO-BIODIESEL
Fact 1: Fossil diesel is made up of non-polar compound molecules of hydrogen and carbon better known as hydrocarbon. Biodiesel is made up of polar compound molecules of hydrogen and carbon, plus oxygen. It is classified as oxygenated fuel.
Fact 2: Hydrocarbons have chemical energy (heat) value ranging from 18,000 BTU/lb to 22,000 BTU/lb. Coco-Biodiesel has slightly lower heat value than kerosene.
Fact 3: Age of engine, poor maintenance, and imperfect fuel quality put together result in wasted energy estimated to range from 10% - 30% (or even more) depending on engine condition. With diesel currently costing P32.7 per liter, wasted amount is P3.27 to P9.81 per liter of fuel used.

9. FACTS ABOUT COCO-BIODIESEL
Fact 4: Black and white smoke emission are incompletely burned and unburned hydrocarbon representing such wasted energy (or wasted money) and are products of poor combustion. Coco-Biodiesel promotes efficient combustion to transform the wasted energy to useful energy – added mileage.
Fact 5: There is absolutely nothing a motorist can do to reduce fuel cost in Peso/liter. But there are many things a motorist can do to reduce fuel cost in Peso/kilometer.
Fact 6: Any and all efforts to “improve” combustion “reduces” emission and “increases” mileage. These are direct relationship.

10. FACTS ABOUT COCO-BIODIESEL
Fact 7: Coco-Biodiesel has similar hydrocarbon structure as diesel except that it has lower T90 temperature and its molecular structure is less clustered. Thus, it is superior if used as diesel fuel. However, it also contains features not present in fossil diesel such as 11% oxygen, high solvency, high lubricity, and excellent polarity. For this reason, it also serves as as effective diesel quality enhancer. A 1% blend is substantial enough to attain clean burning.
(Source: CME A Practical Solution to Quest for Fuel Economy and Clean Air, Rafael S. Diaz, Asian Institute of Petroleum Studies, Inc.)

11. OIL & ESTERS CHARACTERISTICS
Type of Oil
Melting Range, oC
Iodine
Value
Cetane Number
Oil
Methyl
Rapeseed 5
97 to 105 55
Sunflower
-18
-12
125 to 135 52
Soybean
-10
125 to 140 53
Corn -5
115 to 124
Coconut
20-24 -9
8 to 10 70
Palm
30 to 38 14
44 to 58 65
Lard
32 to 36
60 to 70
Generally, an IV less than 25 is required if used in long-term application in unmodified diesel engines; if used in tropical countries, the solidification problem at higher temperatures is non-existent.
Higher Iodine Value means lower temperature to solidify.
Higher Cetane Number indicates a more efficient fuel.

12. CARBON CHAIN PROFILE
PLANT OIL C8
C10
C12
C14
C16
C18
C20
C22
COCONUT 7 49 17 9 11
PALM KERNEL 3 5 8 18
PALM 4 40 58
CORN 1 10 89
SUNFLOWER 6 94
SOYBEAN 83
RAPESEED 42 55
MUSTARD 62 35
The main difference between CME (Philippines) and other vegetable derived esters (VDE) such as Soy Methyl Ester (USA), Rapeseed (Europe) and Palm Methyl Ester (Malaysia) is mainly in the carbon chain profile.
CME and Palm Kernel Esters are the only VDEs that contain a full range of C8 to C18. The presence of lighter hydrocarbon atoms give better range of volatility than other VDEs thus better combustibility. It produces better combustibility since it volatilizes even better than diesel.
(Source : Asian Institute of Petroleum Studies)
CME and Palm Kernel Esters are the only vegetable derived esters (VDE) that contain a full range of C8 to C18. The presence of lighter hydrocarbon atoms give better range of volatility than other VDEs thus better combustibility. It produces better combustibility since it volatilizes even better than diesel.

13. TECHNICAL DATA: CME VS. DIESEL
Parameters
CME
Benefits 51
49OC
0.05% 0%
3-4 cst
3,800 gms
360OC
Cetane Number
Flash Point
Sulfur Content
Oxygen Content
Kinematic Viscosity
Lubricity (BOCLE)
T90 Temperature
62.8
114OC
11%
2-3 cst
>7,000 gms
313OC
Better ignition / good acceleration
Safe in handling and storage
No SOX emission
Complete combustion, less smoke
Good atomization
Enhances efficiency of fuel pump
Good volatility range

14. EMISSION REDUCTION AT 1% CME Blend
Venue/
Date
Test Vehicle
Opacity (“k” value) %
Reduction
Diesel
w/ 1% CME
Holiday Hotel (Cebu)
Mar. 2, 2004
Isuzu Crosswind (odometer reading: 29,000 km)
0.531
0.371
30%
Grand Meng Seng (Davao)
Mar. 3, 2004
Isuzu Hilander
2.475
2.130
14%
Multi-purpose Hall (Baguio)
Mar. 10, 2004
Kia Sportage
(1997 model; odometer reading: 82,892)
7.722
3.426
59%
San Pablo City (Laguna)
Mar. 21, 2004
(2001 model)
1.330
0.352
74%

15. COST EFFECTS
At 1% blend, additional cost of biodiesel is 2-3% over petroleum diesel.
Price of Diesel: P 34 per liter
Price of CME: P – per liter
At 1% CME blend, cost of CME-Diesel fuel:
Diesel (99%)
CME (1%)
Diesel + 1% CME
Add-on Cost
P 33.66
P 0.86 – 1.30
P – 34.96
P 0.52– 0.96 per liter
At about 4 to 6 times the cost of diesel fuel, biodiesel (or pure CME) cannot compete with diesel.
PURE CME
PURE DIESEL
1% Blended CME
ADDED COST
% INCREASE
LOW 86 34
34.52
0.52
0.02
HIGH
130
34.96
0.96
0.03

16. Fuel Economy
Studies shows, there is an average increase of fuel mileage at 1.5 km per liter of 1% CME-Diesel Blend.
A car that travels 2,600 km per month (or 100 km/day for 26 days a month), with a fuel economy of 8 km/liter when using diesel, will have a monthly fuel savings of:
Pure Diesel
CME (1%)
Ave. Monthly Savings
P 11,050
P9,568 – P9,448
P 1,542
Annual Savings of P 18,506 per vehicle

17. TECHNICAL VALIDATION
A USDOE/USAID-commissioned NREL Tests were conducted to address the concerns of oil companies and car manufacturers:
Biodiesel quality specification
(to determine compliance of CME samples with PNS)
Oxidation stability
(to determine how long CME can be safely stored and its behavior under extreme conditions)
Thermal stability
(to determine if CME quality changes on various storage conditions)
Microbial growth
(to determine microbial growth in CME samples considering microbes cause corrosion in the fuel system and premature filter plugging)
Method for determining biodiesel content in blended fuels
Biodiesel quality specification (to determine compliance of CME samples with PNS such as viscosity, flash point, cetane no., glycerine content, water & sediment, etc.)
Oxidation stability (to determine how long CME can be safely stored and its behavior under extreme conditions; fuel instability can cause filter plugging, deposits in the engine combustion chamber and malfunctions in the fuel systems)
Thermal stability (to determine if CME quality changes on various storage conditions)
Microbial growth (to determine microbial growth in CME samples considering microbes cause corrosion in the fuel system and premature filter plugging)
Method for determining biodiesel content in blended fuels
Engine durability test

18. NREL Test Results Properties PNS Stds. CME Diesel Flash Point 100 min
107 85
Cetane number
42 min 70 55
Water & Sediment
0.05 max
0.00
.01
Sulfur, ppm
.05
.0003
Kinematic viscosity
2-4
2.656
3.570
Total Glycerine
0.24 max
0.145 -
Sulfated Ash
0.02 max
0.002
<0.001
NREL test conducted for the following parameters:
Biodiesel quality specifications (ASTM D6751)
Oxidation stability (EN 14112)
Microbial growth (ASTM R1259)
Fuel storage stability (ASTM D4625)
Fuel thermal stability (ASTM E1259
Initial results showed coco-biodiesel’s compliance with Philippine National Standards and exhibits comparable if not superior properties, particularly cetane property, against biodiesel from other countries.
Consultations:
Areas covered (Luzon-8, Visayas-4, Mindanao-6): Manila, Baguio, Cebu, Iloilo, Sorsogon, Albay, Catanduanes, Masbate, Camarines Sur/Norte, Cotabato, Gen. Santos, Zamboanga, Davao, Dumaguete, Bohol, Butuan and Cagayan de Oro
Participating entities: 129 Gov’t Agencies, 64 GOCCs, 30 LGUs, 9 Petroleum Retailers/Oil Companies, 5 Academe and 4 NGOs
Total Participants: 1,400

19. COCO-BIODIESEL PROGRAM
POLICY INITIATIVES
Philippine National Standards on CME: PNS 2020:2003 (May 2003)
M.C. No. 55: “Directing all Departments, Bureaus, Offices and Instrumentalities of the Government, … to Incorporate the Use of 1% by Volume CME in Their Diesel Requirements” (Feb. 9, 2004)
Alicia (Isabela) Resolution No : “Requiring the Use of CME by All Motorists … in Support of the Clean Air Act” (February 11, 2004)
D.C. No : “Rules and Regulations Implementing M.C. 55” (March 29, 2004)
Supreme Court M.C. No : “Directing the Supreme Court, Court of Appeals, Sandiganbayan and the Court of Tax Appeals to Use 1% CME” (June 23, 2004)
Baguio City Resolution No. 154, Series of 2004: “Encouraging the Use of CME by All Motorists … in Support of the Clean Air Act” (June 29, 2004)
D.C. No : “Promoting the Use of Coco-Biodiesel as an Alternative Clean Fuel” (March 1, 2005)

20. Memorandum Circular No. 55
M.C. No. 55: “Directing all Departments, Bureaus, Offices and Instrumentalities of the Government, … to incorporate the use of 1% by volume CME in their diesel requirements” (Feb. 9, 2004)
OBJECTIVES:
To promote the use of Coco-Biodiesel
as a cleaner alternative transport fuel
To enhance diversification of fuel sources
Compliance result
80 complying government agencies with 1,150 diesel-fed vehicles blended 1% CME
Feedback from users-
76% reported improved mileage/increased in mileage and 24% uncertain
80% lighter emission and 20% uncertain or not aware

21. SALIENT POINTS OF BIOFUELS BILL Mandatory use of Biodiesel
Declaration of policy
Develop and utilize indigenous renewable energy sources to reduce dependence
Mitigate toxic and green house gas emissions
Increase rural employment and income
Mandatory use of Biodiesel
Immediately upon the effectivity of the IRR of the Act
a. blending a minimum of 1% biodiesel by volume into all diesel engine fuel distributed and sold nationwide;
b. must conform with the PNS on biodiesel;
Creation of Philippine Biofuel Board (PBB)
a. empowered to determine the feasibility of increasing the blend
b. mandate a total of 2% by volume blend of Biodiesel within 2years from the effectivity of the Act.

22. BIODIESEL PROGRAM IMPLEMENTATION
2012
2011
2010
2009
2008
2007
2006
2% Biodiesel Blend % biodiesel blend
1% CME
I Implementation of BIOFUELS ACT
II IRR Formulation
III Infrastructure Dev’t
Accreditation of manufacturers/sellers
IV Technical validation/Assessment
Laboratory analysis and engine tests
Coconut Plantation/Other feedstock Enhancement
V. Technology compatibility
Availability of flex-fuel vehicles
VI. IEC
Tri-media campaign, consultations. Seminars
Monitoring of Implementation
111 M liters M Liters
40M liters
For higher blends CME/ JME Biodiesel

23. BIODIESEL DEMAND PROJECTION
Year
Projected Diesel Demand (in Million Liters
Mandated Blend
Biodiesel requirement (in million liters)
Estimated coconut oil requirement** (in million tons) %
Coconut oil requirement
***
2006
3,964 1% 40 3
2007
4,121 41
2008
4,274 2% 85 6
2009
4,447 89
2010
4,586 92 7
2011
4,786 96
2012
4,988
100
2013
5,191
104
2014
5,365
107 8
2015
5,544
111
Coconut conversion to CME = 1:1 , Coconut oil production apprx. 1.4 billion liters

24. Coconut Plantation Requirement
Percent Blend
Volume of CME Requirement
(Million liters /year)
Coconut Plantation Requirement
(Hectares) 1%
2 % 5%
10% 40
111
200
400
83, 333
231,000
417,000
833,000
Basis: 1 hectare = 480 liters CME
Present Scenario:
3 M hectares planted to coconut trees, 2.4M metric tons total copra Capacity
4.9 M MT total copra crushing capacity,
1.4 Billion liters total oil production in which 80% is exported, 20% is consumed locally
4 Producing facility of CME with total capacity of 111 million liters /year

25. JATROPHA BIODIESEL

26. What has been Done
Meetings were conducted in 2005 with NAPC-NEDA, PNOC, NRDC, AFP and private entities to discuss the use of Jatropha as biodiesel feedstock leading to the:
development of an implementation plan (activities and timeframe)
identification of the roles and functions of implementing agencies
identification of resources and logistical requirements
Potential fuel displacement:
5% blend: 236 million liters (Php 7 billion)
10% blend: 536 million liters (Php 16 billion)
At gasoline price: Php 29.84/liter

27. What has been Done
Indian mission study represented by DOE, DOST and DA
“Feasibility Study for the Production and Processing of Biodiesel conducted by FAO for DOST
Visits to D1 and PFC plantations in General Santos and Nueva Ecija, respectively
Potential fuel displacement:
5% blend: 236 million liters (Php 7 billion)
10% blend: 536 million liters (Php 16 billion)
At gasoline price: Php 29.84/liter

28. Source of seeds/seedlings etc. Oil recovery Crop management
Issues and Concerns
(Plantation)
Seed Variety
Source of seeds/seedlings etc.
Oil recovery
Crop management
Hectarage Requirements
Pest management
Economics
Others
Potential fuel displacement:
5% blend: 236 million liters (Php 7 billion)
10% blend: 536 million liters (Php 16 billion)
At gasoline price: Php 29.84/liter

29. Technology availability
Issues and Concerns
(Production)
Technology availability
Small scale capacity
Large scale capacity (?)
Standards formulation
Economics against diesel
Intellectual Property Rights
Others
Potential fuel displacement:
5% blend: 236 million liters (Php 7 billion)
10% blend: 536 million liters (Php 16 billion)
At gasoline price: Php 29.84/liter

30. Local and Global Experiences Vehicle Compatibility
Issues and Concerns
(Utilization)
Local and Global Experiences
Vehicle Compatibility
Engine Performance
Emission
Engines and parts durability
Supply Accessibility
Others
Potential fuel displacement:
5% blend: 236 million liters (Php 7 billion)
10% blend: 536 million liters (Php 16 billion)
At gasoline price: Php 29.84/liter

31. Steps Forward
Creation of a Technical Working Group to address issues and concerns on plantation, production and utilization Development of biodiesel standard appropriate for Philippine conditions
- Resource and technology assessment, variety identification and improvement and seed system, crop management, characterization of variety, pest management, among others.
Creation of IEC Taskforce on dissemination of right information to farmers and other interested parties.
NREL test conducted for the following parameters:
Biodiesel quality specifications (ASTM D6751)
Oxidation stability (EN 14112)
Microbial growth (ASTM R1259)
Fuel storage stability (ASTM D4625)
Fuel thermal stability (ASTM E1259
Initial results showed coco-biodiesel’s compliance with Philippine National Standards and exhibits comparable if not superior properties, particularly cetane property, against biodiesel from other countries.
Consultations:
Areas covered (Luzon-8, Visayas-4, Mindanao-6): Manila, Baguio, Cebu, Iloilo, Sorsogon, Albay, Catanduanes, Masbate, Camarines Sur/Norte, Cotabato, Gen. Santos, Zamboanga, Davao, Dumaguete, Bohol, Butuan and Cagayan de Oro
Participating entities: 129 Gov’t Agencies, 64 GOCCs, 30 LGUs, 9 Petroleum Retailers/Oil Companies, 5 Academe and 4 NGOs
Total Participants: 1,400

32. Steps Forward Identification of production technology for JME
Testing of JME samples leading to fuel registration and accreditation.
Identification of production technology for JME
Registration and certification of JME
Biofuels Summit
NREL test conducted for the following parameters:
Biodiesel quality specifications (ASTM D6751)
Oxidation stability (EN 14112)
Microbial growth (ASTM R1259)
Fuel storage stability (ASTM D4625)
Fuel thermal stability (ASTM E1259
Initial results showed coco-biodiesel’s compliance with Philippine National Standards and exhibits comparable if not superior properties, particularly cetane property, against biodiesel from other countries.
Consultations:
Areas covered (Luzon-8, Visayas-4, Mindanao-6): Manila, Baguio, Cebu, Iloilo, Sorsogon, Albay, Catanduanes, Masbate, Camarines Sur/Norte, Cotabato, Gen. Santos, Zamboanga, Davao, Dumaguete, Bohol, Butuan and Cagayan de Oro
Participating entities: 129 Gov’t Agencies, 64 GOCCs, 30 LGUs, 9 Petroleum Retailers/Oil Companies, 5 Academe and 4 NGOs
Total Participants: 1,400

33. STATUS
PNOC-EDC –established jatropha nursery 5 hectares plantation in Dacong Cogon Negros Occidental in coordination with D1 Oils (3 mos. old)
PFC – 35 has. Plantation in Fort Magsaysay Nueva Ecija in collaboration with Phil. Army ( 1 year old) and established nursery in Ligao Albay
Provincial Government of Camarines Sur - 10 has. plantation in collaboration with PAFC ( 6 mos. Old)
D1 Oils has. Plantation in Gen. Santos ( 3 mos. Old)
Lacto Asia - 17 has. Plantation in Camarines Sur (flowering)
Potential fuel displacement:
5% blend: 236 million liters (Php 7 billion)
10% blend: 536 million liters (Php 16 billion)
At gasoline price: Php 29.84/liter

34. Jatropha IMPLEMENTATION PLAN
Policy Action
Techno-Economic Study
Creation of focus groups, multi-sectoral / inter-agency linkages
TWG on Fuel / Engine Tests
International cooperation
Standards development / adoption
2011
2010
2009
2008
2007
2006
2005
Supply Infrastructure
Development of Jatropha supply chain
Production of JME/Registration/Accreditation
Potential fuel displacement:
5% blend: 236 million liters (Php 7 billion)
10% blend: 536 million liters (Php 16 billion)
At gasoline price: Php 29.84/liter
Technology Assessment
Fuel properties
Engine performance and emissions
Engine durability
Capacity building
R&D
IEC / Market Development
Tri-media campaign, consultations, seminars

36. BIOETHANOL FUEL PROGRAM
WHY BIOETHANOL FUEL?
Considered as an environmental and economic development strategy:
Reduces dependence on imported oil
Increases economic activity in the countryside
Employment booster
Environmentally-friendly
Improves combustion and reduces emissions

37. Fuel Ethanol (Status) Investments/Infrastructure
Launching of the NDC-Bronzeoak Fuel Ethanol and Power Plant in San Carlos, Negros Occidental (May 30, 2005)
Three (3) prospective investors given endorsement for fuel ethanol production
Total capacity of 380, 000 liters /day to start operation by 2008
Supply Development
Launch of the First Fuel Ethanol (E10) Gasoline Fueling Facility of Seaoil (August 29, 2005)
Availability of E10 in all Seaoil gasoline stations nationwide and 4 Flying V stations in Metro Manila
Availability of E10 in Shell gasoline stations in Metro Manila
Standards
Philippine National Standard for Bioethanol Fuels promulgated April 2006

38. Ethanol Requirements (liters) Required sugarcane plantation (has.)
Fuel Ethanol
Demand and Supply Requirements
Percent Blend
Ethanol Requirements (liters)
Total Number
Mfg Plants Required
Required sugarcane plantation (has.) 5%
268,000,000 9
63,810
10%
721,000,000 16
171,667
Present Scenario:
389,000 has. Sugarcane
60 tons sugar/has
70 liters bio-ethanol/ton sugarcane

39. FUEL ETHANOL PROGRAM IMPLEMENTATION
2010
2009
2008
2007
2006
2005
Voluntary use
10% blend
Nationwide
5% blend
Nationwide
10% blend
Policy Action
Technical / economic & pricing mechanism study on ethanol production / use on different feedstock
Creation of focus groups, multi-sectoral / inter-agency linkages
International cooperation
Standards promulgation
Legislation (Biofuels Act )
5% locally % locally
Imported ethanol
Supply Infrastructure
Ethanol importation
Ethanol production
upgrading (6-8 months)
new facilities (1.5-2 years)
Blending facilities / distribution network
Development of other feedstock supply chain
Technology
Laboratory and engine testing
Capacity building
R&D other feedstock
Technology compatibility
Availability of flexi-fuel vehicles
IEC / Market Development
Tri-media campaign, consultations, seminars

40. BIOETHANOL DEMAND PROJECTION
Year
Projected Gasoline Demand (in Million Liters
Mandated Blend
Bioethanol requirement (in million liters)
Sugar cane requirement (in million tons)
Area Requirement (hectares) %
area requirement A B C
D = B x C
E = D / 70
F = E/60
G = F / 389,000
2006
4,595
2007
4,845
2008
5,102 5%
255
3.6
60,000 15
2009
5,370
269
3.8
63,333 16
2010
5,650
10%
565
8.1
135,000 35
2011
5,939
594
8.5
141,667 36
2012
6,239
624
8.9
148,333 38
2013
6,549
655
9.4
156,667 40
2014
6,870
687
9.8
163,333 42
2015
7,210
721
10.3
171,667 44

41. SALIENT POINTS OF BIOFUELS ACT Mandatory use of Bioethanol
Declaration of policy
Develop and utilize indigenous renewable energy sources to reduce dependence
Mitigate toxic and green house gas emissions
Increase rural employment and income
Mandatory use of Bioethanol
Within two years from the effectivity of the Act
a. blending of 5% bioethanol by volume into all gasoline fuel distributed and sold nationwide;
b. must conform with the PNS on fuel ethanol;
Creation of Philippine Biofuel Board (PBB)
a. empowered to determine the feasibility of increasing the blend
b. mandate a total of 10% by volume blend of Bioethanol within 4 years from the effectivity of the Act.

42. SALIENT POINTS OF BIOFUELS ACT
Powers and Functions of Philippine Biofuel Board
Review, monitor the implementation of, and evaluate for further expansion, the Phil. Biofuel Program prepared by the DOE
Monitor the supply and utilization of biofuels and biofuel blends and recommend appropriate measures in cases of shortage of feedstock supply for approval of the Secretary of DOE.
Review and adjust the minimum mandated biofuel blends as it deems appropriate, subject to publication; provided that the minimum blend shall not be lowered within seven (7) years from the effectivity or full implementation of the mandated minimum blend

43. SALIENT POINTS OF BIOFUELS ACT
Powers and Functions of Philippine Biofuel Board
Recommend program that will ensure the availability of alternative fuel technology for vehicles, engines and parts in consonance with the mandated minimum blends and maximize the utilization for the adoption and and implementation of appropriate government agencies;
Recommend specific actions to be executed by the DOE and other appropriate agencies of the government in the implementation of the Philippine Biofuel Program

44. SALIENT POINTS OF BIOFUELS BILL
Composition of Philippine Biofuel Board
Chairman - DOE Secretaries or designated Undersecretaries as Chairman
Members - Secretaries or Designated Undersecretaries or Asst. secretaries :
DTI, DAF, DOTC, DOF- Bureau of Internal Revenue, Bureau of Customs and Tariff Commission, DENR, Representative from biofuel industry, petroleum industry, and automotive industry endorsed by their respective Associations and appointed by President of the Philippines.
The board shall be assisted by the Technical Secretariat attached to the office of the Secretary of the DOE or Usec.

45. SALIENT POINTS OF BIOFUELS BILL
Incentives
Specific Tax on biofuels, per liter of volume capacity, shall be zero (0);
Duties and taxes on the importation of machinery and equipment actually, directly and exclusively for use in the production of biofuels shall be exempted for the period 10 years, provided it is certified and accredited by DOE;
All investments in the production, blending, and distribution of biofuels and adoption of biofuel-compliant vehicle technologies shall enjoy the applicable fiscal and non fiscal incentives as may be provided under the Omnibus Investment Code;
All effluents such as but not limited to distillery slops from the production of biofuels used as liquid fertilizer and for other agricultural purposes are considered reuse and shall not be covered by RA9275 or Clean Water act but subject to DENR monitoring and evaluation and approval of the DA

46. SALIENT POINTS OF BIOFUELS ACT
Incentives (cont…)
e. Government financial Institution shall accord high priority to extend financing to entities that shall engage in activities involving production, storage, handling and transport of biofuel and biofuel feedstock, including the blending of biofuels with petroleum, as certified by the DOE

47. THANK YOU