BioEthanol: The Philippine Experience

BioEthanol: The Philippine Experience
By: Major Yoko C. Ramos-Vingno


The Philippines’ chief promoter of Biofuels is Senator Juan Miguel Zubiri. Senator Zubiri, being the principal author of the Republic Act 9367, or the Biofuels Act of 2006, has illustrated that with its proper implementation, the RP biofuels program hopes to serve as the model program in the region.

Her Excellency Gloria Macapagal Arroyo is hoping that with the Republic Act 9367, or the Biofuels Act of 2006, with strong government support, and a wide pool of technical manpower thus making the Philippines an excellent biofuels investment site.


2nd Biofuels World Conference in Manila

Secretary Renato S. Velasco, Ph.D., former Presidential Management Staff head and now Chairman of the Philippine National Oil Company Alternative Fuels Corporation (PAFC), for the second time hosted the World Biofuels Conference, which was attended by the leading proponents of the Biofuels enthusiasts and investors in the world.

The theme for this year was “Moving Towards sustainability and Second-Generation Feedstocks” held at the Dusit Thani Hotel, from 13-14 May 2008.

Secretary Velasco, speaking at the conference said, “We want the farmers to continue to growing rice, sugar and others. What we intend to do is give farmers additional income by developing idle lands by planting Jatropha.” And adds “what many people do not realize about the food-vs.-fuel debate is that shortages in the supply of food have always been around, and calling for an end to the emerging biofuels industry will just push the prices of oil, food, products and other services higher.”

Among the presenter was Mr. Alejandro Moreno, Asian business development director of Abengoa Bioenergy, the largest ethanol producer in Europe, exploring to invest the country.

Secretary Velasco has initiated the first meeting of the National Biofuels Board with the Office of Senator Juan Miguel Zubiri, Department of Energy and the Sugar Regulatory Office.



The National Biofuels Board (NBB)
The National Biofuels Board is composed of the DOE Secretary as Chairman, the Secretaries of the Department of Trade and industry (DTI), Department of Science and Technology (DOST), Department of Agriculture (DA), Department of Finance (DOF), and Department of Labor and Employment (DOLE), and the Administrators of the Philippine Coconut Authority (PCA) and Sugar Regulatory Administration (SRA) as members.

The following are the functions and powers of the NBB:

Monitor the implementation of the Philippine Biofuels Program prepared by the DOE and evaluates the need for its further expansion;

Monitor the supply and utilization of biofuels and biofuel-blends and recommend an appropriate measure on case of shortage of feedstock supply for the approval of the DOE Secretary;

Review and recommend to the DOE the adjustment in minimum mandated biofuel blends subjected to the availability of locally sourced biofuels, provided that the minimum blends may decrease only within the first four years of the law’s effectivity

BioEthanol and the Sugar Industry

Sugar is largely produced in the country, grown mainly in the island of Negros, Luzon, Panay and Mindanao. The Sugar Regulatory Administration (SRA) said that there are still 90,750 hectares (224,000) acres of sugarcane available that can be used for ethanol production.

Conservatively, the country can produce 4,550 liters (145 gallons) per hectare per year using sugarcane as feedstock. The breeding efforts of the Philippine Sugar Research Institute Foundation and the Sugar Regulatory Administration developed high yielding varieties of sugarcane that are available. These varieties are able to produce 109 tons of cane per hectare on average.

The sugar industry is now in a slump but the ethanol program is turning sugar into a high-value crop. There are about five million people employed in this business. Existing sugar lands adequate for the production of bioethanol.

Government on Biofuels

The Philippines has about P12B worth of projects in the pipe line, which will produce 240 million liters annually in support of the 223 million liters/year projected demand of a 5% bioethanol mixture with petrol by 2009 as mandated by the Philippine Biofuels Law, according to Secretary Angelo Reyes of the Department of Energy (DOE).

DOE have endorsed four Bioethanol Companies to the Philippine Board of Investors to avail of the benefits under the 2007 Investments Priorities Plan, which may include a “pioneer status” and other tax incentives and other perks:

ü San Carlos Bioenergy, Inc
Investment: P2.5B for a 30million liters/year capacity plant
Location: San Carlos City, Negros Occidental
ü JG Summit
Investment: P800M for a 30 million liters/year capacity plant
Location: Manjuyod, Negros Occidental
ü Biofuels 88/Flying V
Investment: P500M for a 9 million liters/year capacity plant
Location: Mariveles, Bataan
ü Leyte Agri
Investment: P35.9M for a 9 million liters/year capacity plant
Location: Ormoc, Leyte

Other Bioethanol Companies with pending registration at the Securities and Exchange Commission are:

1. First Pampanga Biofuels Corp
2. South Bukidnon Bioenergy Inc
3. Zambo Norte Bioenergy Corp
4. Renewable Alternative Fuel Inc
5. Kanlaon Alcogreen
6. Negros Green Resources
7. Pampanga Industrial Park
8. Hope 8 Manufacturing and Trading Corp
9. Eastern Renewable Fuels Corp
10.Petrolift Holdings, Inc

While 8 more companies have pending application from DOE are:

1. Negros Southern Integrated Biofuels Corp
2. JG Itochu
3. Tamlang Valley Ethanol
4. Pampanga Industrial Park
5. BM SB Integrated Biofuels
6. Negros BioChem Corp
7. Fuel Inc
8. Ginebra San Miguel Inc

San Miguel Corporation (Ginebra San Miguel Inc), with its decade long experience in the beer industry is setting to diversify from its core business.

SEAOIL’s E10

Seaoil Philippines is one of the small players in the industry leading the way in endorsing alternative fuel. From August 2005 to date, it has noted more than 2 million fill-ups of the ethanol-blended fuel. E10 is priced lower than unleaded gasoline.

Francis Glenn Yu, the young and dapper President and CEO of Seaoil, noted that people who have tried E10 felt the difference, thus his company has invested on its own ethanol plant that can produce 100,000 liters a day. He is hoping to lower the price of E10 to make it more appealing.


Bioethanol Uses

Hydrous Ethanol is 95 percent ethanol and 5 percent water. This can be
used as a full substitute for gasoline in cars but this fuel requires
special engines that are modified for this purpose.

Anhydrous Ethanol is 99 percent ethanol and 1 percent water. This can
be used as a partial gasoline substitute, blended with conventional
fuel between ratios 5 percent and 85 percent ethanol. Cars with
standard spark ignition engines can utilize a 10 percent ethanol
substitute (E10) without modification.

Ethyl t-butyl ether (ETBE)

Advantages/Plus Factors

Ø Bioethanol is a beneficial alternate for fossil fuels because it is a renewable agricultural source and it does not add net carbon dioxide – greenhouse gas – to the atmosphere. An environmental gain.

Ø Price practicality and technical possibility as substitute to gasoline.

Ø The carbon dioxide released by the combustion of ethanol is absorbed by agriculture, which will eventually be converted to ethanol, and thus a carbon dioxide balance is maintained in the atmosphere.

Ø As the use of ethanol fuel increases, the agricultural markets expand.

Ø Energy security will increase due to countries that will be less dependent on the traditional fuel.

Ø Ethanol has a higher octane rating than gasoline thus improving the compression ration of an internal combustion engine allowing for increased thermal efficiency, preventing premature detonation under load as well as the burning of engine valves.

Ø Agricultural feedstocks (sugar cane, corn, switchgrass, and others) are considered renewable because they get energy from the sun using photosynthesis to grow (ie life cycle) and all minerals required for growth (such as nitrogen and phosphorus) are returned to the land. The creation of ethanol starts with photosynthesis causing feedstocks to grow.

Ø Economic benefit is it could generate employment as investors put up biofuel crop plantations and processing plants.

Bioethanol 101

Bioethanol is ethanol produced by the biological fermentation of carbohydrates drawn from plant material. This is not a new fuel. In the 1850’s overseas, it has been used to light homes and businesses. Mr Henry Ford, in 1908, designed his original Model T Ford to run on a mixture of gasoline and alcohol, which he hailed as – the fuel of the future.

Ethanol is a fuel made from sugar found in plants. It is two-carbon hydrocarbon group made into an alcohol. It is a clear, flammable, colorless liquid that is miscible with water, as its hydrophilic hydroxyl group capable if hydrogen-bonding with water molecules.

It has the same type of alcohol found in alcoholic beverages, with similar beer brewing process where starch are converted into sugars, fermented into ethanol, and then the ethanol is distilled to its final form.

Bioethanol when used as fuel is usually blended in a percentage with gasoline to make a finished motor fuel depending on the volume like E10. The letter E stands for ethanol and the number stands for the percent of ethanol that is mixed with gasoline. There are fueling stations all over the country that offer E10. All vehicles that run on gasoline can use E10 without making any changes to their engines.


Using ethanol as a fuel gives us a cleaner, healthier air. It helps farmers by providing additional uses for their crops. Ethanol use means less dependency on fossil fuel -- thus good for the economy, the environment and the country!

Biofuels- culprit for global hunger? Fact or Fiction

By: *Major Yoko Ramos-Vingno, (O-141086) PA

Year old Republic Act 9367 (known as the Biofuels Act of 2006 – the first in the world!), the Philippines’ contribution to the world’s fight against global warming, is now being attacked as the factor for the rising food prices.

Philippine President Gloria Macapagal Arroyo has stated to achieve energy self-sufficiency by 2010. Line agencies of the government were tasked to implement RA 9367. But with officials are faced with global problem of food insecurity -- some sectors have proposed to shelve the Law. The debate on Food versus Fuel continues.

“The Clean Energy Myth”, Time Magazine’s cover story tackled the promise of the Biofuels as the response to the global fight against climate change or global warming but the uncovered the sad fact that it is projected to be the villain --major factor of global starvation.

The image of Biofuels as a clean burning fuel has dramatically changed to a monster like creature depriving the people of world their food.

Another voice heard was that of Monsieur Jean Ziegler, UN Rapporteur for the Right to Food, chanting, “Producing biofuels is a crime against humanity.” The international Monetary Fund had a rejoinder saying that biofuels “posed a real moral problem and called for a moratorium on using food crops to power cars, trucks and buses.”

The demand for clean air and climate conscious enthusiasts have prompted to invest in bioethanol – countries like the United States, Germany and Brazil. Farmers found it more attractive to sell their products to the refineries due to the higher selling price. Forests were also exploited. Ripple effect followed – thus, the world is now faced with global hunger.

Critics have also speculated that the Commodity Speculators have contributed to the crisis.

People around the world cannot cope up with the soaring prices of basic commodities thus creating a global food crisis!

Take the case of Haiti where violent protests ensued; farmers found it difficult to compete with cheap, and US subsidized rice called Miami rice. This was part of the food aid program, a loan granted to Haiti by the International Monetary Fund (IMF). Farmers were then forced to leave their lands because of the situation so they ended up jobless. Hungry people increased and food is unavailable – a grim picture. Hunger riots resulted to the ouster of Prime Minister Jacques Edouard Alexis.

Similar unrests related to the problem erupted in Africa, Egypt, Cameroon, Ivory Coast, Mauritania, Ethiopia and Madagascar.

The Philippines is not spared by this global experience. Poor Filipinos, under the scorching sun, were seen queuing for cheaper rice sold by the government thru its rolling stores. President GMA thought of FIELDS to address this problem. She has instructed the DA Secretary Arthur Yap to assist the farmers with F – ertilizers, I – rrigation and infrastructure, E – xtension and education, L – oans and insurance, D – yrers and other post harvest facilities, and S – eeds.

Not to be outdone by the critics, the defenders of Biofuels have expressed that “ignoring biofuels’ potential to boost development would be a real crime against humanity,” quoted from Brazilian President Luiz Inacio Lula da Silva.

“The government is facilitating the transition of our energy sector to a sustainable system by developing renewable energy as a viable fuel option.” DOE Secretary Angelo Reyes

“The local situation is quite different from what is happening globally, we have jatropha plantation which is not harmful to the environment and it does not compete with food crops.” Secretary Renato S. Velasco, PNOC- Alternative Fuels Corporation Chair

Global population growth, droughts – climate change, the governments - its laws and policies together with their head of states, the price of crude oil to $120 per barrel and the inability of other countries to sustain their own food is a result of the crisis – Despite all these factors, the Philippines is not giving up on the Biofuels Program.

Everybody has to do his or her share. Global cooperation of our governments is needed to achieve good economics and politics so the world will unite for our interest – a common act towards the betterment of our Mother Earth.


The Philippines’ road map for Biofuels Program includes:
ü Ban on planting of biofuels feedstock in all irrigated and highly productive lands.

ü The bioethanol production would be implemented only in sugar-producing districts, with excess sugar

ü Use of four million hectares of idle and denuded mountain lands to plant Jatropha



Types of Biofuels:

Bioethanol Crops are sugarcane, corn, cassava and nipa.

§ Bioethanol is currently being used in Brazil, the United States, China, India and Thailand.

§ A World Bank study has estimated that corn prices “rose over
§ 60 percent from 2005 to 2007, largely because of the US ethanol program. President George W. Bush said the United States should increase ethanol use because of national energy security and high gasoline prices.

§ Thought to be an eco-friendly fuel but studies shows that ethanol increases global warming, destroys forests and jacks-up food prices.



Biodiesel Crops are palm, soy, rapeseed, sunflower, coconut and jatropha.

Palm is abundant in Malaysia, Indonesia and Thailand
Rapeseed and Sunflower mostly in Europe
Soybean is grown in the United States
Coconut known as the tree of life in the Philippines
Jatropha dubbed as the miracle plant because of its many uses

Ø The goal of Biodiesel production is to move away from food based feedstocks.







* Major Yoko Ramos-Vingno, PA is a Director at the Office of the President of the Philippines, Malacañang. She has joined the Philippine Army in 2007. Director Ramos worked for President Gloria Macapagal Arroyo as her deputy appointment secretary in the Office of the Vice President of the Philippines.