Philippines Explores Diverse Feedstocks for Bioethanol Expansion

THE departments of Agriculture (DA) and Energy (DoE) are exploring cheaper and more diverse feedstock options to support the expansion of bioethanol production in the Philippines. Agriculture Secretary Francisco P. Tiu Laurel, Jr. met with Energy Secretary Sharon S. Garin to discuss how to lower feedstock costs, maximize idle distillery capacity, and expand domestic ethanol production, with an eye towards the eventual increase of the ethanol blend fuel to as much as 15%. The feedstock options the DA and the DoE are examining include molasses, sugarcane juice, and corn. The DA said that diversifying feedstock could reduce pressure on any single agricultural commodity and lower local bioethanol prices. “We are studying these options carefully, and there is potential for them to help bring down gasoline prices,” Mr. Laurel said in a statement. The DA said that domestically produced corn has emerged as the main alternative feedstock, noting that the crop can be harvested within 90 to 110 days, which could potentially allow supply to respond quickly to increasing demand. Mr. Laurel said that the problem is not the availability of corn, but rather if the crop can be bought at a price that makes ethanol commercially viable. The DA said it is studying the expansion of corn production through improved seed, mechanization, and contract farming deals by ethanol plants. However, the DA also warned that higher demand from ethanol producers could increase corn prices for livestock raisers, who rely on corn for animal feed. Officials said domestic feedstock costs higher than imports while domestic bioethanol is double the price of imports. Mr. Laurel said that palm oil could become a long-term feedstock alternative for biodiesel and aviation fuel but noted that plantations would take about three years to mature. The DA said that the government is finalizing a Philippine National Standard for bioethanol, with a draft currently being put through public consultation. According to the DA, domestic ethanol production is estimated at 325 million to 385 million liters annually using sugarcane-derived feedstock, while plants have a capacity exceeding 500 million liters. — Marron Joshua F. Mendoza