Title: IMPROVEMENTS IN CONVENTIONAL FUELS AND UPDATES ON ALTERNATIVE FUELS PROGRAM
1IMPROVEMENTS IN CONVENTIONAL FUELS AND UPDATES ON
ALTERNATIVE FUELS PROGRAM
A Presentation by ZENAIDA Y. MONSADA Director,
OIMB- Department of Energy
Partnership for Clean Air General Assembly
Asian Development
Bank 20 October
2005, Mandaluyong City
2 2004 Energy/Power Mix
Power Mix
Energy Mix
Natgas
Hydro
Others
Hydro
22.6
15.3
32.1
5.6
Natgas
6.3
Coal
Geo
Geo
Coal
12.3
18.4
6.8
28.9
Source Department of Energy
3Fuels and Vehicle Emissions
VEHICLE
FUEL
EMISSION
DOE
DOTC / LTO / MMDA / DTI / DOST
DENR
4Fuel Quality Improvement
5 CAA Requirements Fuel Specs
Unleaded Gasoline
- Aromatics 45 max Jan. 1, 2000
- Benzene 4 max Jan. 1, 2000
- AKI 87.5 min Jan. 1, 2001
- RVP 9 psi max Jan. 1, 2001
- Aromatics 35 max Jan. 1, 2003
- Benzene 2 max Jan. 1, 2003
Automotive Diesel
Sulfur 0.2 max Jan. 1, 2001 Cetane
No./Index 48 min Jan. 1, 2001
Sulfur 0.05 max Jan. 1,
2004
Industrial Diesel
Sulfur 0.3 max Jan. 1, 2001
Note 0.05 max effective Jan. 1, 2009, per PNS
6 Fuel Quality Standards
- 1. CONVENTIONAL FUELS
- PNS 11312000 (ULG complying to CAA for 2000
specs) - PNS 202000 (Diesel complying to CAA for 2001
specs) - PNS 11312001 (Multigrade ULG complying 2001
specs) - PNS 11312002 (ULG complying to CAA 2003)
- PNS/DOE QS 0042003 (Diesel complying to CAA for
2004 specs, and possible differentiation between
tax-free and tax-paid) - PNS/DOE QS 0012005 (ULG with sulfur level
conforming to EURO II standard of 0.05 mass
max.) - DPNS/DOE QS 0072005 (Bunker Fuel)
Phase out lead in gasoline 9 mos. ahead of sked
MM Accelerated sulfur reduction to 0.05 S in ADO
2 mos. ahead of sked MM
7 Fuel Quality Standards
- 2. ALTERNATIVE FUELS
- PNS 20202003 (B100 100 CME)
- - DOE CME Logistical Test Protocol
- PNS/DOE QS 0032003 (2-stroke Lubricating Oils,
update of 1992) - PNS/DOE QS 0052005 (Auto-LPG, update of 1990)
- DPNS/DOE QS 0072005 (Anhydrous Bioethanol Fuel)
- Drafting of standard for Jatropha
DEPARTMENT OF ENERGY
8 ALTERNATIVE FUEL PROGRAM (Fuel
Ethanol Program)
- DPNS QS 0072005 Anhydrous Bioethanol Fuel
Specification - 1. Raw Materials
- Imported Ethanol 99 purity
- Local Ethanol
- Anhydrous
- Hydrous
- 2. Intermediate Products
- Fuel Ethanol
- Pre-blended gasoline
- Finished product offered at gas stations
- E-gasoline, E5 E10
9 Facilities Quality Standards
- FACILITIES STANDARDS
- PNS/DOE Petroleum Products for Retail Outlets
(promulgated by BPS Feb. 23, 2005) - PNS/DOE FS 1-12005 Health, Safety and
Environment - PNS/DOE FS 1-22005 Underground Storage Tank
- PNS/DOE FS 1-32005 Piping System
- PNS/DOE FS 1-22005 Dispensing Pumps
- DPNS on LPG Refilling Plant (For promulgation 1Q
2006) - Drafting PNS for Storage Facilities
- Draft DC on Handling, Transport Distribution of
LPG Cylinders
DEPARTMENT OF ENERGY
10 DOE Role - Additives Registration
- Fuel Additives Registration
- Total Applications filed - 79
- Permanent Registration granted - 24
- Total Provisional Registration Issued - 31
- Applications Reviewed/Evaluated - 24
- (subject for further compliance)
- As of 15 October 2005
- Types of additives applied/registered
- Octane enhancer
- Lubricity/friction modifier
- Emission/smoke suppressant
- Fuel efficiency improver
- Detergent
- Deposit control
- Anti-valve seat recession and others
DEPARTMENT OF ENERGY
11Alternative Fuels Program
12 ALTERNATIVE FUEL PROGRAM
(Coco-Biodiesel Program)
POLICY INITIATIVES
- MC No. 55 Directing all Departments, Bureau,
Offices and Instrumentalities of the Government
. to Incorporate the Use of 1 by volume CME in
Their Diesel Requirements (Feb 9, 2004) - DC No. 2004-04-003 Rules and Regulations
Implementing MC 55 (March 29, 2004) - Supreme Court M C No. 07-2004 Directing the
Supreme Court, Court of Appeals, Sandiganbayan
and the Court of Tax Appeals to Use 1 CME (June
23, 2004) - DC No. 2005-04-003 Promoting the Use of
Coco-Biodiesel as an Alternative Clean Fuel
(March 1, 2005) - Alicia, Isabela Resolution No. 2004-009
Requiring the Use of CME by All Motorists In
support of the Clean Air Act (Feb 11, 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)
13 ALTERNATIVE FUEL PROGRAM
(Coco-Biodiesel Program)
- Coco-Biodiesel Distribution Network
- B100 Dealers/retailers
- 192 gasoline stations (Flying V and Seaoil)
- 110 retailers/distributors (Chemrez and Senbel)
- Pre-blended 1 CME (B1) outlets
- - Flying V stations
- Unioil
- Seaoil - FilOil
- USA 88
DEPARTMENT OF ENERGY
14 ALTERNATIVE FUEL PROGRAM
(Coco-Biodiesel Program)
- I E C
- Stakeholders consultations and seminars on
Coco-Biodiesel Program, M C 55 and demand
expansion (expanded utilization of CME) in
cooperation with TUP, PCA, CME manufacturers and
USDOE/USAID SEDP - Audio visual presentations, collateral materials
website - Focused group discussions (i.e. clean cities
program)
DEPARTMENT OF ENERGY
15 ALTERNATIVE FUEL PROGRAM
(Coco-Biodiesel Program)
- Steps Forward
- Legislative measure Biodiesel/Biofuels Bill
- - mandate 1 CME blend by 2006 to
all diesel fuel - Continue IEC campaigns to accelerate public
acceptance especially in Clean Cities pilot areas
(Baguio, Davao, Marikina and Makati) - Expand utilization of CME nationwide power
generation and marine transport
DEPARTMENT OF ENERGY
16 ALTERNATIVE FUEL PROGRAM
(Fuel Ethanol Program)
LEGISLATIVE MEASURES
- HB 4629 Mandating the Use of Bioethanol or
Ethyl Alcohol and other Biofuels as
Transport Fuel - SB 2007 Mandate the Use of Biofuels in the
Transport Sector
DEPARTMENT OF ENERGY
17 ALTERNATIVE FUEL PROGRAM
(Fuel Ethanol Program)
- Ethanol Production
- NDC-Bronzeoak Fuel Ethanol and Power Plant
- - Location San Carlos City, Negros Occidental
- - Investment P1.5 Billion
- - Ethanol Distillery 100,000 liters/day (30
million liters/yr.) - - Cogeneration Plant 9 MW
- - Timeline 1Q 2006 (construction) 2nd Half
2007 (operation)
SUPPLY
DEPARTMENT OF ENERGY
18 ALTERNATIVE FUEL PROGRAM (Fuel
Ethanol Program)
INCENTIVES
- Executive Order No. 449 Tariff is reduced
from 10 to 1 when imported with certification
from the Department of Energy that this article
will be used for the Fuel Ethanol Program. - - Quality Specification Ethyl alcohol strength
by volume of exceeding 99 volume - Tax Code P 0.05/l excise tax on fuel ethanol
vs. P23.30/l - DOFDOE Joint Guidelines drafting
- BIR Draft Revenue Regulation
19 ALTERNATIVE FUEL PROGRAM (Natural Gas
Program)
- POLICY INITIATIVES
- Executive Order 164 providing 1 import duty of
NGV related equipment, parts and components
(January 10, 2003) - Promulgation of 48-sets of Philippine National
Standards for Natural Gas Utilization for
Transport (June 2003) - Executive Order 290 Implementing the Natural Gas
Vehicle Program for Public Transport (February
24, 2004) - Department Circular No. 2004-04-004 Guidelines
on the Issuance of Certificate of Accreditation
(CA) and Certificate of Authority to Import (CAI)
Under the NGVPPT (April 2, 2004) - Executive Order 396 Reducing the Rates on CNG
Vehicles and NGV Industry- Related Equipment
(December 31, 2004) - Department Circular No. 2005-07-006 Directing the
Enhance Implementation of the NGVPPT and the
Development of compressed Natural Gas (CNG)
Supply and Infrastructure. (July 5, 2005)
DEPARTMENT OF ENERGY
20 ALTERNATIVE FUEL PROGRAM (Natural Gas
Program)
INCENTIVES
- Attractive CNG price substantially lower than the
pump price of diesel (P 14.52/diesel liter
equivalent) - Zero percent (0) rate of duty
- Income Tax Holiday
- Preferential franchises
- Manpower development and capability building
through training and technology transfer - Affordable and commercially tenable financial
package from GFIs - Accelerated issuance of ECC for NGV facilities
and refueling stations
DEPARTMENT OF ENERGY
21 ALTERNATIVE FUEL PROGRAM (Natural Gas
Program)
- MARKET DEVELOPMENT
- Accreditation of 7 bus operators
- - HM Transport, RRCG Transport, KL Transport,
Pascual Liner, Greenstar Express, Biñan Bus
Line, CNG Vehicles Corp. - Delivery Schedule of CNG Buses
- - 5 units (October 2005)
- - 200 Units (Total by 1st quarter 2006)
- Target for 2007-2008
- - 2,000 CNG buses, 10 CNG refueling stations
- Potential suppliers of CNG buses
- Cummins Westport Asia, Daewoo, Ashok Leyland
DEPARTMENT OF ENERGY
22 ALTERNATIVE FUEL PROGRAM (Natural Gas
Program)
Standards Development
(48 sets of PNS promulgated
on June 2003)
- Road vehicles
- Refueling Station
- Gas Cylinders
- Gas Quality
I E C
- Libreng Sakay Sa NGVs and testing by bus
operators (May 17, 2004 with 2,286 passengers) - Bus operators participation
- Presentation of the first CNG Commercial Bus
(July 1, 2005)
DEPARTMENT OF ENERGY
23 ALTERNATIVE FUEL PROGRAM (Natural
Gas Program)
STEPS FORWARDS
- Expansion of the NGVPPT implementation
- Encourage more investments in CNG-related
industry (CNG suplly infrastructure, NGV
assembly/manufacture, etc.) - Formulate pricing mechanism for commercial phase
- Enhance incentives and standards
DEPARTMENT OF ENERGY
24 ALTERNATIVE FUEL PROGRAM
(Auto LPG)
- INCENTIVES
- Inclusion of autogas assembly facilities,
conversion shops, refueling stations, and taxi
fleet operations in BOIs 2005 IPP - DBP to finance acquisition of autogas vehicles
through the Clean Alternative Transport Fuel
Financing Program - STANDARDS
- Standards Technical Committees (TC6, TC44,
TC- dispensing stations) drafted standards for
autogas vehicles, autogas cylinders and autogas
dispensing stations. -
DEPARTMENT OF ENERGY
25 ALTERNATIVE FUEL PROGRAM
(Auto LPG)
- SUPPLY INFRASTRUCTURE
- Petron Gasul
- - 4 dispensing pumps in MM and Cebu
- - Future installation 10 dispensing
stations w/in MM / Luzon - Shell LPG
- - 4 dispensing pumps in Cebu and 1 dispensing
pump in Cagayan de Oro City - -
Future installation 2 garage-based pumps -
DEPARTMENT OF ENERGY
26 ALTERNATIVE FUEL PROGRAM
(Auto LPG)
- MARKET DEVELOPMENT
- Metro Manila 110
- DBP 28
- Freedom
taxi 26
- Munich
taxi 24 - ABC taxi 15 -
Saigon taxi 10 - Basic taxi 2
- Alcotby taxi 2 - Avis
1 - AAP 1 - Ambi
Energy 1 -
- Cebu 258
- Corominas taxi 144
- Emersons transport 60
- Jays Express 44 - RP
Corominas 10 - Cagayan de Oro 2
- - Jays Express 2
DEPARTMENT OF ENERGY
27 ALTERNATIVE FUEL PROGRAM (Auto
LPG)
- STEPS FORWARD
- Public hearing and promulgation of autogas
standards - Consultations with autogas stakeholders
- Recommendation for policy action
- Information, education and communication (IEC)
DEPARTMENT OF ENERGY
28Diesel Demand vs. Supply in MBCD
29Gasoline Demand vs. Supply in MBCD
30 Fuel Quality is Only One of the Factors
Affecting Emissions
FUEL QUALITY
ENGINE DESIGN
EMISSION
ENGINE MAINTENANCE
VEHICLE USE
TRAFFIC MANAGEMENT
31Thank you