By Tracy Cabrera
DILIMAN, Quezon City — With the Marcos Jr. administration wanting to reduce the country’s dependence on imported fossil fuels, the Department of Agriculture (DA) and Department of Energy (DoE) are mapping out a way for cheaper and more diverse feedstock to make Philippine bioethanol competitive with imported fuel while protecting farmers and industries that depend on the same crops.
In an announcement, Agriculture Secretary Francisco ‘Kiko’ Tiu-Laurel Jr. disclosed that he is currently discussing with Energy Secretary Sharon Garin critical strategies that would bring down feedstock costs, maximize idle distillery capacity and expand domestic ethanol production.
According to Secretary Tiu-Laurel, their discussions bank on the possibility of increasing the country’s ethanol blend to 15 percent from the present 10 percent.
He enthused that they are now examining different feedstock options that could support higher ethanol production, including molasses and sugarcane juice from the sugar industry and locally produced corn.
“We are studying these options carefully and there is potential for them to help bring down gasoline prices.” the secretary asserted.
He added, however, that the economics behind the move are proving difficult as domestic feedstock has historically cost higher than imported supplies while locally produced bioethanol prices are double that of the same from other countries.
“Every increase in feedstock costs can also translate into a roughly P1 increase in ethanol prices. Locally-produced corn has emerged as the main alternative feedstock to compliment molasses and sugarcane juice, which currently supplies much of the country’s ethanol production,” he explained.
Despite this, Tiu Laurel is stressing that the problem is not the availability of corn but whether it can be bought at a price that makes ethanol commercially viable.
To date, local ethanol production is estimated at 325 million to 385 million liters per year using sugarcane derived feedstock while existing plants have a capacity exceeding 500 million liters.
DA officials said that to protect the sugarcane industry, only the unused capacity could be sourced from corn, which would accommodate additional production without displacing existing agricultural output.
The DA is studying expanded corn production through better seeds, mechanization, and contract farming between producers and ethanol plants.
“Corn can be harvested within 90 to 110 days, potentially allowing supply to respond relatively quickly to increased demand,” Tiu-Laurel pointed out.
Aside from thishe said, corn used for bioethanol will still have distilled DDGS (dried grains with solubles) as a byproduct which feed manufacturers can use as a high protein source.
But he also warned against creating another price problem as higher demand from ethanol producers could raise corn prices for livestock raisers, who rely on the crop for animal feed.
“Diversifying feedstock could reduce pressure on any single agricultural commodity, and possibly lower local bioethanol prices,” he noted.
To conclude, the agri chief mentioned that palm oil could provide another long-term feedstock for biodiesel and even aviation fuel, although plantations would take about three years to mature.
ia/xf
