THE Departments of Agriculture (DA) and Energy (DOE) are exploring cheaper and more diverse feedstock to make locally produced bioethanol more competitive with imports, while protecting farmers and industries that rely on the same crops.
Agriculture Secretary Francisco Tiu Laurel Jr. and Energy Secretary Sharon Garin discussed ways to lower feedstock costs, maximize idle distillery capacity, and expand domestic ethanol production as the government seeks to reduce dependence on imported fossil fuels.
“We are studying these options carefully, and there is potential for them to help bring down gasoline prices,” Tiu Laurel said.
The discussions come as the government considers increasing the ethanol blend in gasoline to 15 percent from the current 10 percent.
The DA and DOE are examining feedstock options such as molasses and sugarcane juice, as well as locally produced corn. The agencies noted that domestic feedstock has historically been more expensive than imported supplies, while locally produced bioethanol costs about twice as much as imported ethanol.
Domestic ethanol production is estimated at 325 to 385 million liters annually using sugarcane-derived feedstock, compared with existing plant capacity of more than 500 million liters.
The DA said corn could be used to supply only the industry’s unused capacity to avoid displacing sugarcane as an existing ethanol feedstock.
The department is also studying ways to expand corn production through improved seeds, mechanization and contract farming arrangements between farmers and ethanol producers.
Tiu Laurel said the main issue is not corn availability, but whether ethanol producers can buy it at a price that makes domestic ethanol commercially viable.
Corn can be harvested within 90 to 110 days, allowing production to respond relatively quicker to increased demand. Corn-based ethanol production also yields distillers dried grains with solubles (DDGS), a high-protein byproduct that can be used for animal feed.
However, the DA cautioned that increased demand from ethanol producers could drive up corn prices for livestock and poultry producers that rely on the crop for feed.
Diversifying feedstock could reduce pressure on individual commodities and help lower domestic bioethanol prices.
Tiu Laurel said palm oil could also be considered as a longer-term feedstock for biodiesel and aviation fuel, although oil palm plantations take about three years to mature.
The government is also finalizing the Philippine National Standard for bioethanol, with the draft currently undergoing public consultation.
