The Department of Agriculture (DA) and Department of Energy (DOE) are exploring cheaper, more varied feedstock options to make local bioethanol price-competitive with imported fuel—while safeguarding farmers and existing crop industries—as the government eyes a higher fuel-ethanol blend and reduced reliance on imported fossil fuels.
Agriculture Secretary Francisco P. Tiu Laurel Jr. and Energy Secretary Sharon Garin recently met to map ways to cut feedstock costs, utilize idle distillery capacity, and scale up domestic output. The discussions tie into plans to raise the ethanol blend in gasoline to 15 percent from the current 10 percent.
Key feedstock under review includes molasses and sugarcane juice—today’s main supply—plus locally grown corn. “We are studying these options carefully, and there is potential for them to help bring down gasoline prices,” Tiu Laurel said.
The bioethanol sector faces steep economic hurdles. Local feedstock has long been more expensive than imports, and domestically produced bioethanol currently costs twice as much. Every rise in feedstock prices adds roughly ₱1 per liter to ethanol costs.
Local production stands at 325–385 million liters yearly from sugarcane-based inputs, while existing plants can produce over 500 million liters—leaving significant untapped capacity. Corn has emerged as the top alternative, but affordability remains the barrier: supply exists, yet it must be priced low enough to make ethanol commercially viable.
To protect the sugarcane industry, officials said corn will only be used to fill excess capacity, so new output does not displace existing crops. The DA is looking to expand corn production through improved seeds, mechanization, and contract farming between growers and ethanol facilities. Corn matures in 90–110 days, enabling faster supply response, and its processing yields distillers’ dried grains with solubles (DDGS)—a high-protein animal feed byproduct.
Still, officials warn higher corn demand could drive up prices for livestock producers who rely on it for feed. Diversifying feedstock sources would ease pressure on any single crop and could help lower local bioethanol prices over time.
For the longer term, palm oil is being studied as a feedstock for biodiesel and sustainable aviation fuel, though plantations take about three years to mature. Meanwhile, the government is finalizing the Philippine National Standard for bioethanol, with the draft currently open for public consultation.
