The Department of Agriculture (DA) and Department of Energy (DOE) are exploring lower-cost, more varied raw materials to expand domestic bioethanol production, make local fuel competitive with imports, and safeguard farmers and related industries, officials confirmed.
Agriculture Secretary Francisco P. Tiu Laurel Jr. and Energy Secretary Sharon Garin led talks on cutting feedstock expenses, maximizing idle distillery capacity, and scaling up output — key steps as the government moves to reduce dependence on imported fossil fuels. The discussions tie to a planned rise in ethanol blend from 10 percent to 15 percent in domestic fuels.
Authorities are evaluating molasses, sugarcane juice, and locally grown corn as primary feedstock options. “We are studying these options carefully, and there is potential for them to help bring down gasoline prices,” Secretary Tiu Laurel said.
Cost remains the core barrier. Local feedstock has long been pricier than imported alternatives, and domestically produced bioethanol currently costs twice as much as imported supply. Officials estimate every rise in raw material expenses adds roughly ₱1 per liter to ethanol prices.
Corn has emerged as a leading alternative to supplement sugarcane-based supplies. The challenge is not availability, but securing corn at prices that keep ethanol commercially viable. Current local ethanol production runs 325–385 million liters yearly from sugarcane sources, with existing plants capable of over 500 million liters. To protect the sugarcane industry, corn will only be used to fill unused capacity, avoiding displacement of existing crops.
The DA is exploring expanded corn output through improved seeds, mechanization, and contract farming with ethanol facilities. Corn matures in 90–110 days, enabling faster supply responses to growing demand. Its processing also yields dried distillers grains with solubles (DDGS), a high-protein byproduct usable in animal feed.
Yet officials warn increased corn demand could drive up prices for livestock raisers who rely on it for feed. Diversifying feedstock sources would ease pressure on any single commodity and support lower long-term prices.
For the longer term, palm oil is being eyed as feedstock for biodiesel and sustainable aviation fuel, though plantations require around three years to reach maturity. A national bioethanol standard is also being finalized, with the draft now open for public consultation.
