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11/29/2012
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Hotel Salak The Hotel Salak The
Heritage, Bogor, Heritage, Bogor,
IndonesiaIndonesia
November 6November 6--7, 20127, 2012
Biofuels Act Biofuels Act of 2006of 2006
Renewable Renewable Energy Act of Energy Act of
20082008
Guidelines Guidelines Governing Governing
Biofuel Biofuel Feedstocks Feedstocks ProductionProduction
All Liquid fuels for
motors & engines
sold in the Philippines shall contain locally-
sourced biofuels
components;
Provides social
amelioration benefits
to biofuel workers
Ma
nd
ate
Mandates the development
of renewable energy which
includes the utilization of biomass energy. It provides
additional fiscal incentives
to bioenergy projects &
activities such as income tax
holiday, duty-free
importation of machine-ry &
equipment, etc. covering
biofuel producers, farmers &
local fabricators
Ince
nti
ve
s
Regulates the use of
agricultural crops and
lands for biofuel production; cereals such
as rice, corn, wheat, etc.
cannot be used as
feedstock for biofuels;
irrigated lands with
government funding
cannot be utilized as
feedstock production
areas for biofuels
Fe
ed
sto
cks
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Year 2008 2009 2010 2011 2012*
% Blend - 5% 5% 10% ** 10%
PRODUCTION CAPACITY (Million Liters) 9.0 39.0 49.0 49.0 79.0
SUPPLY
Production (Molasses & Sugarcane) 1.0 23.3 10.2 4.1 31.0
Imports 12.5 64.2 140.4 218.8 239.1
Total 13.5 87.5 150.6 222.9 270.1
DEMAND - 185.1 187.0 234.6 319.7
ACTUAL ETHANOL Based on E10 SOLD 7.0 82.2 178.3 196.2 279.0
COMPLIANCE TO MANDATE (Oil Companies) - 44.4 95.3 83.6 87.3
* Projections only
**Implemented in Aug 2011 with exemptions; full implementation in 2012
NOTE: A policy for the mandatory utilization of locally-produced bioethanol through
allocation to oil companies prior to importation is implemented together with the
setting up of a bioethanol reference price
A Study Conducted by Dr. Akihiro A Study Conducted by Dr. Akihiro WatabeWatabe of Kanagawa University, Japanof Kanagawa University, Japan
(A Project of the Institute of Energy Economics Japan (IEEJ)(A Project of the Institute of Energy Economics Japan (IEEJ)
In Partnership With The National Biofuel Board and Sugar Regulatory Administration)In Partnership With The National Biofuel Board and Sugar Regulatory Administration)
A Study Conducted by Dr. Akihiro A Study Conducted by Dr. Akihiro WatabeWatabe of Kanagawa University, Japanof Kanagawa University, Japan
(A Project of the Institute of Energy Economics Japan (IEEJ)(A Project of the Institute of Energy Economics Japan (IEEJ)
In Partnership With The National Biofuel Board and Sugar Regulatory Administration)In Partnership With The National Biofuel Board and Sugar Regulatory Administration)
• The results of the analysis based on the distillery model using an existing sugarcane plantation as source of feedstock showed that the Biofuels Act of 2006 will benefit the environment; i.e., there is reduction in GHG emission.
• The study provides a partial analysis only since bioethanol from molasses and newly constructed distilleries using new lands not previously planted with sugarcane must be also considered in future analysis.
• The total economic impact of
biofuel supply in the Philippine
economy is evaluated based on
the magnitude of the value
added generated by biofuels
supply to GDP.
• The higher the blending rate,
the higher is the total value
added to the Philippine
economy, and biofuel supply
contributes about 6-12% of GDP
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Producers (2012) Capacity
(Million Liters)
Sales
(Million Liters)
% Blend
1. Chemrez Technologies, Inc. 75 2007 – 48.5 1.0%
2. Mt. Holly Coco Ind’l Co. Ltd. 50 2008 – 64.5 1.0%
3. Pure Essence Int’l, Inc. 60 2009 - 131 2.0%
4. Golden Asian Oil Int’l, Inc. 60 2010 – 124.5 2.0%
5. Bioenergy 8 Corp 30 2011 – 122.5 2.0%
6. Tantuco Enterprises 30 Coconut is the main feedstock for
biodiesel & the Philippines exported
around 75% of its coconut products
7. Phil. Biochem Prod., Inc. 12 The biodiesel producers are pushing for
an increase in blend to 5%; under
evaluation is the reliability of feedstock
supply and impact of CME biodiesel
price to the pump price of diesel.
8. Freyvonne Milling Services 15.6
9. JNJ Oleo Chemicals, Inc. 60
TOTAL 392.6
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Updates on Biomass EnergyUpdates on Biomass Energy
• In July 2012, the feed-in-tariff rate of biomass was approved at
P 6.63 per kw (15.8 US cents / kw)
• Philippine sugar mills are now assessing their current power generation
capacities for possible upgrading of their boilers and turbo generators
A. Socio-economic impacts
1.Additional investments of approximately 12 billion pesos (US$ 286 M) due to the
establishment of biofuels facilities
2.Additional employment opportunities in the rural communities; most felt in the
emergence of bioethanol facilities from agricultural crops
3.Alternative market for commodities derived from indigenous crops when there is
reduced demand in the international market for the commodities like sugar & coconut
oil.
B. Impact to the environment
1.Displacement of fossil fuels with cleaner biofuels although environmental data are
not well-monitored especially vehicle emissions reduction; However, based on the LCA
for bioethanol, there is a potential reduction in GHG emissions; No LCA is conducted
for biodiesel yet.
2.Utilization of biomass into power prevents the unnecessary burning of excess
bagasse, rice hulls and other farm trashes
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1. Passage of a National Land Use Policy to prevent the premature conversion of
agricultural lands into residential and commercial areas which resulted to the
shrinkage of agricultural lands.
1. Consolidation of lands and identification of potential areas for bioenergy
investments, especially for bioethanol crops.
1. Gathering of economic indicators and environmental data to assess the real
benefit of biofuels to the economy and the environment.
1.During the first two years of the implementation of the bioethanol mandate, oil
companies preferred to import bioethanol to comply with the mandate rather than
buying the locally-produced bioethanol since imported bioethanol is cheaper. In 2011,
bioethanol producers became hesitant to produce bioethanol and some investors
deferred their investments.
Upon the strict implementation of the policy on mandatory utilization of locally-
produced bioethanol and setting up of a bioethanol reference price, oil companies
were compelled to buy the local bioethanol first.
2.The farming sector and the government came to realize that productivity of
bioenergy crops such as sugarcane and coconut should be improved in order to be
competitive with the world market.
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Simultaneous edits on one single document.
No more waiting your turn or managing
multiple versions.
It’s about team work, and will get you there.
Consistent collaboration and stronger
linkages between Asian nations towards
a sustainable bioenergy development
Proposed Areas of Cooperation
Cooperation in terms of analyzing the impact of the Philippine
bioenergy policies and in the establishment of computerized
information centers for biofuel crop farmers
Website : www.sra.gov.ph
Email : [email protected]
Tel. No. : (632) 929-6137
(632) 455-0446