Energy Issues in the Asia-Pacific Region

2. Biofuels Development and Prospects in the Philippines

24 N.A. Orcullo, Jr. 2 BIOFUELS DEVELOPMENT AND PROSPECTS IN THE PHILIPPINES N.A. Orcullo, Jr. ABSTRACT Economic growth is a goal and an aspiration of developing countries such as the Philippines.The challenges to economic growth presented by the escalating prices of petroleum product imports have motivated governments to consider localized and renewable sources of energy as a major aspect of the countries’ energy supply. For the Philippines, an essentially agricultural economy, one option is to develop renewable energy resources, particularly biomass-based feedstock. As a result, localizing energy supply by exploring and developing renewable energy has always been a part of the country’s priorities since energy planning was institutionalized there in the 1970s. INTRODUCTION The Department of Energy (DOE) is the primary agency of the Philippine Government mandated to develop and implement the overall agenda for the energy sector. The agenda is embodied in the Philippine Energy Plan. Developing the alternative/renewable energy sector through the Alternative Fuels Program is among the components of the Philippine Energy Plan. The DOE emphasis on the harnessing and utilization of renewable energy comprises 02 Energy Issues Ch 2 7/12/10, 3:51 PM 24 Biofuels Development and Prospects in the Philippines 25 a critical component of the government’s strategy to provide energy supply for the country. This is evident in the power sector, where increased generation from geothermal and hydro resources has lessened the country’s dependence on imported and polluting fuels. In the government’s rural electrification efforts, on the other hand, renewable energy sources such as solar, microhydro , wind, and biomass resources are now used on a wide scale. Based on current projections of the DOE, renewable energy is foreseen to provide up to 40 per cent of the country’s primary energy requirements over the ten-year period beginning in 2003. Although its share will decline in relation to the total figure, renewable energy is estimated to grow at an average annual rate of 2.4 per cent in absolute terms. Biomass, micro-hydro, solar, and wind will remain the largest contributors to the total share of renewable energy in the energy mix, with an average share of 27.5 per cent. Meanwhile, hydro and geothermal will contribute the balance and continue to be significant sources of electric power. THE ALTERNATIVE FUELS PROGRAM This is one of the five key components of the Arroyo administration’s Energy Independence Agenda, which outlined the roadmap that will lead to the country’s attainment of 60 per cent energy self-sufficiency by 2010 (www.doe.gov.ph). The DOE is implementing a long-term Alternative Fuels Program meant to (1) reduce the country’s dependence on imported oil and (2) provide cheaper and more environment-friendly alternatives to fossil fuels. Through this programme, the DOE intends to tap the country’s domestic produce as viable sources of energy. The goal is to develop indigenous and renewable energy fuels for long-term energy security, so that these sources of energy may become a pillar of the country’s sustainable growth. The Alternative Fuels Program has four major subprogrammes, namely, the Biodiesel Program, Bioethanol Program, Natural Gas Vehicle Program for Public Transport (NGVPPT), and Autogas Program. Other technologies advocated under the programme are hybrid, fuel cell, hydrogen, and electric vehicles. The direction to address biofuels was given more specific emphasis with the enactment of the Biofuels Law (RA 9367), which was signed by President Gloria Macapagal-Arroyo on 12 January 2007. Development of a comprehensive biofuels programme is underway. The Department of Energy (DOE), Department of Agriculture (DA), and other partners as identified in the Biofuels Law are now pursuing an action plan focused on biofuels, as mandated by the said law in the spirit of the energy plan already in place. 02 Energy Issues Ch 2 7/12/10, 3:51 PM 25 26 N.A. Orcullo, Jr. THE BIOFUELS ACT OF 2006 The encouraging results of tests evaluating coconut mythel ester (CME) as a diesel fuel additive, the existence of the biodiesel standards, and the growing number of private business organizations engaged in the production and marketing of biodiesel all indicated that biodiesel in CME form was promising. Eventually, President Gloria Macapagal-Arroyo launched the Coco-Biodiesel Program on 21 April 2004 in San Pablo City, a coconut-producing area where a number of coconut-based processing companies are located. These developments somehow inspired the...