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Implementation of new E20 policy expected to immediately boost ethanol demand in Philippines

A recent development in the Philippines solidifies the country’s position as one of the most forward-thinking ethanol and biofuels markets globally.

Expanding on the success of the nationwide mandate introduced in 2013, requiring a 10 percent ethanol blend (E10) in gasoline, the Philippines Department of Energy has permitted fuel retailers to voluntarily increase blending to E20.

Caleb Wurth, Regional Director for Southeast Asia & Oceania at the U.S. Grains Council, emphasized the positive impact of this decision, stating, “The Department of Energy’s decision to increase the ethanol blend ceiling is a win for the consumers, environment and industry of the Philippines.” He further expressed readiness to support the Philippines in expanding ethanol efforts, anticipating a nationwide E20 blend mandate in the future.

With an annual gasoline consumption of 1.8 billion gallons, ethanol production in the Philippines has surged by nearly 450% since the implementation of the E10 mandate, providing economic benefits to rural areas, lowering pump prices, and reducing greenhouse gas emissions by over 800 kilotons of carbon dioxide annually.

The Philippines has maintained a beneficial relationship with the U.S., importing 55 million gallons of ethanol in 2023, comprising 85% of all ethanol imports and 40% of the country’s total ethanol demand. U.S. ethanol imports have contributed to price reductions and stimulated domestic production investment.

The implementation of the new E20 policy is expected to immediately boost ethanol demand in the Philippines by 86 million gallons.

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