The country’s biofuels consumption is projected to recover this year as the economy expands, its ethanol imports likely growing 12 percent, according to the United States Department of Agriculture (USDA).
In a report dated June 9, the agency said fuel ethanol demand is seen growing more than seven percent to 693 million liters from last year’s 644 million liters. Biodiesel is projected to increase 14 percent to 230 million liters from 202 million liters as fuel pools widen.
By law, petroleum oil products sold in the country are blended 10 percent ethanol and 2 percent biodiesel. There have been claims the actual blend is significantly lower such that proposals to increase the mix have been discussed both in the Senate and the Lower House but eventually relegated to the back burner on fears this will only trigger fuel pump price adjustments.
Amid forecast higher biodiesel consumption, the US Department of Agriculture project the Philippine fuel ethanol production to remain flat at 375 million liters biodiesel production up eight percent to 220 million liters from 203 million liters.
The report noted that limited feedstock remains a challenge as ethanol production in the Philippines is derived from sugar cane while biodiesel is sourced from copra.
“Domestically produced bioethanol uses sugarcane mostly molasses as feedstock, while biodiesel feedstock is from coconut. Policy implementation is focused on production and consumption with no policies issued to incentivize lower carbon intensity of existing biofuels over time, another signal of stagnation,” the report said.
Likewise, the USDA sees Philippine fuel ethanol imports for the year to grow by 11.9 percent to 310 million liters from 277 million liters, to fill the gap from short local production.
