The Philippines is exploring cheaper and more diverse feedstock options to make locally produced bioethanol more competitive with imports, while ensuring that farmers and industries dependent on the same agricultural commodities are not adversely affected, The Phil Biz News reported.
The Department of Agriculture (DA) and Department of Energy (DOE) are examining ways to reduce feedstock costs, utilise idle distillery capacity and increase domestic ethanol production as the government works to reduce dependence on imported fossil fuels.
The discussions are also linked to the possibility of raising the country’s ethanol blending rate to 15% from the current 10%.
Agriculture Secretary Francisco P. Tiu Laurel Jr. and Energy Secretary Sharon Garin discussed several feedstock options, including molasses and sugarcane juice from the sugar industry, as well as locally produced corn.
“We are studying these options carefully, and there is potential for them to help bring down gasoline prices,” Tiu Laurel said.
The cost of feedstock remains a major challenge for the domestic ethanol industry. Officials noted that locally available feedstock has historically been more expensive than imported supplies, while Philippine-produced bioethanol currently costs about twice as much as imported ethanol.
An increase in feedstock costs can translate into an estimated P1 rise in ethanol prices.
Corn is being considered as the main additional feedstock to complement molasses and sugarcane juice, which currently account for much of the country’s ethanol production.
Tiu Laurel said the issue is not the availability of corn but whether it can be supplied at a price that allows ethanol production to remain commercially viable.
Domestic ethanol production is estimated at 325 million to 385 million litres annually from sugarcane-derived feedstock, while existing distilleries have combined capacity of more than 500 million litres.
To avoid undermining the sugarcane industry, officials said corn would be used only for currently unused distillery capacity. This would allow additional ethanol production without displacing existing agricultural output.
The DA is also examining ways to expand corn production through improved seeds, mechanisation and contract farming arrangements between farmers and ethanol producers.
Corn’s relatively short production cycle could help meet additional demand, as the crop can be harvested within 90 to 110 days. Ethanol production from corn would also generate distillers dried grains with solubles (DDGS), which can be used by feed manufacturers as a high-protein ingredient.
The DA, however, has cautioned that increased demand for corn from ethanol producers could create another price pressure. Higher corn prices could affect livestock raisers who depend on the crop as animal feed.
Diversifying the raw materials used for ethanol production could help reduce dependence on a single agricultural commodity and potentially bring down domestic bioethanol prices.
Tiu Laurel also identified palm oil as a possible long-term feedstock for biodiesel and potentially sustainable aviation fuel. However, palm plantations would require around three years to mature.
Meanwhile, the government is finalising a Philippine National Standard for bioethanol, with the draft standard currently undergoing public consultation.
