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Implementing Biofuels Programme in the Philippines Mario C. Marasigan Director Energy Utilization Management Bureau Department of Energy

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Title: Implementing Biofuels Programme in the Philippines Mario C. Marasigan Director Energy Utilization Management Bureau Department of Energy


1
Implementing Biofuels Programme in the
PhilippinesMario C. MarasiganDirectorEnergy
Utilization Management BureauDepartment of
Energy
2
(No Transcript)
3
Alternative Fuels Program
To achieve energy independence and fuel
diversification while meeting environmental
challenges through the utilization of alternative
fuels
Others (autogas, hybrid, EV)
Natural Gas
4
PHILIPPINE ENERGY PLAN FRAMEWORK
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 1 40 22
Nationwide 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
  • 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
  • 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
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 Melting Range, oC Iodine Value Cetane Number
Type of Oil Oil Methyl Iodine Value Cetane Number
Rapeseed 5 0 97 to 105 55
Sunflower -18 -12 125 to 135 52
Soybean -12 -10 125 to 140 53
Corn -5 -10 115 to 124 53
Coconut 20-24 -9 8 to 10 70
Palm 30 to 38 14 44 to 58 65
Lard 32 to 36 14 60 to 70 65
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 7 49 17 9 11 0 0
PALM KERNEL 3 5 49 17 8 18 0 0
PALM 0 0 0 4 40 58 0 0
CORN 0 0 0 1 10 89 0 0
SUNFLOWER 0 0 0 0 6 94 0 0
SOYBEAN 0 0 0 0 10 83 0 0
RAPESEED 0 0 0 0 3 42 55 0
MUSTARD 0 0 0 0 3 62 35 0
(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
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 0 11 2-3 cst gt7,000 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) Opacity (k value) Reduction
Venue/ Date Test Vehicle Diesel w/ 1 CME Reduction
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 Isuzu Hilander (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
86.00 130.00 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 34.52 34.96 P 0.52 0.96 per liter
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

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 .000382
Kinematic viscosity 2-4 2.656 3.570
Total Glycerine 0.24 max 0.145 -
Sulfated Ash 0.02 max 0.002 lt0.001
19
COCO-BIODIESEL PROGRAM
  • POLICY INITIATIVES
  • Philippine National Standards on CME PNS
    20202003 (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. 2004-009
    Requiring the Use of CME by All Motorists in
    Support of the Clean Air Act (February 11, 2004)
  • D.C. No. 2004-04-003 Rules and Regulations
    Implementing M.C. 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)
  • 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. 2005-04-003 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 (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
2 Biodiesel Blend 5 biodiesel blend
1 CME
  • I Implementation of BIOFUELS ACT
  • II IRR Formulation
  • III Infrastructure Devt
  • 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 200 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 40 3
2007 4,121 1 41 41 3
2008 4,274 2 85 85 6
2009 4,447 2 89 89 6
2010 4,586 2 92 92 7
2011 4,786 2 96 96 7
2012 4,988 2 100 100 7
2013 5,191 2 104 104 7
2014 5,365 2 107 107 8
2015 5,544 2 111 111 8

Coconut conversion to CME 11 , 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

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

28
Issues and Concerns (Plantation)
  • Seed Variety
  • Source of seeds/seedlings etc.
  • Oil recovery
  • Crop management
  • Hectarage Requirements
  • Pest management
  • Economics
  • Others

29
Issues and Concerns (Production)
  • Technology availability
  • Small scale capacity
  • Large scale capacity (?)
  • Standards formulation
  • Economics against diesel
  • Intellectual Property Rights
  • Others

30
Issues and Concerns (Utilization)
  • Local and Global Experiences
  • Vehicle Compatibility
  • Engine Performance
  • Emission
  • Engines and parts durability
  • Supply Accessibility
  • Others

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.

32
Steps Forward
  • Testing of JME samples leading to fuel
    registration and accreditation.
  • Identification of production technology for
    JME
  • Registration and certification of JME
  • Biofuels Summit

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
- 200 has. Plantation in Gen. Santos ( 3 mos.
Old) Lacto Asia - 17 has. Plantation in Camarines
Sur (flowering)
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
  • Supply Infrastructure
  • Development of Jatropha supply chain
  • Production of JME/Registration/Accreditation
  • Technology Assessment
  • Fuel properties
  • Engine performance and emissions
  • Engine durability
  • Capacity building
  • RD
  • IEC / Market Development
  • Tri-media campaign, consultations, seminars

35
(No Transcript)
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
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



Nationwide 5 blend
Nationwide 10 blend
Voluntary use 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 10 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
  • RD 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 0
2007 4,845 0
2008 5,102 5 255 3.6 60,000 15
2009 5,370 5 269 3.8 63,333 16
2010 5,650 10 565 8.1 135,000 35
2011 5,939 10 594 8.5 141,667 36
2012 6,239 10 624 8.9 148,333 38
2013 6,549 10 655 9.4 156,667 40
2014 6,870 10 687 9.8 163,333 42
2015 7,210 10 721 10.3 171,667 44

41
SALIENT POINTS OF BIOFUELS ACT (ETHANOL)
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
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