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!