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Renewable Energy Management Bureau Department of Energy

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Renewable Energy Management Bureau Department of Energy Status Updates of the Philippine Bioenergy Industry Presented to the GBEP Sustainability Indicators Workshop Philippine International Convention Center, Pasay City 24 June 2019 Ruby B. De Guzman Chief Science Research Specialist Biomass Energy Management Division Renewable Energy Management Bureau Department of Energy Department of Energy Empowering the Filipinos Outline of Presentation • Challenges and Barriers • Enactment of Landmark Laws • Policy Directions and Mechanisms – Biofuels – Biomass • Where we are now • Policies and Development Status • Research and Development Activities - Biofuels • Biomass Energy Resource Assessment • The Way Forward Department of Energy Empowering the Filipinos Renewable Energy omass / ofuels eothermal olar Power ydropower cean ind Power Department of Energy Empowering the Filipinos Challenges / Barriers to RE Development High upfront and technology costs Non-competitiveness Non-viable markets Inaccessible Financial Packages Social Acceptability To address these barriers, the Government promulgated landmark Laws to accelerate development of the country’s renewable energy resources. Department of Energy Empowering the Filipinos Landmark Laws REPUBLIC REPUBLIC ACT NO. ACT NO. 9367 9513 The primary bioenergy policy of the country is governed by two landmark laws. Department of Energy Empowering the Filipinos R.A. 9367: Biofuels Act of 2006 An Act to direct the use of biofuels, establishing for this purpose the Biofuel Program, Appropriating Funds therefore, and for other purposes Signed into law on January 12, 2007 Republic Act 9367, also known as the Biofuels Act of 2006, was implemented to increase the contribution of biofuels in the country’s energy mix thereby reducing its dependence on imported fossil-based fuels, enhance the quality of the environment, and create opportunities for countryside socio-economic development. Department of Energy Empowering the Filipinos R. A. No. 9367: The Biofuels Act of 2006 Provides fiscal incentives and mandates the use of biofuel- blended gasoline and diesel fuels BIODIESEL BIOETHANOL 2% biodiesel blend on Feb. 6, 2009 10% bioethanol blend to all gasoline on Feb. 6, 2012 Supply: Supply: . 11 Accredited Producers with annual . 12 accredited Producers with annual total total capacity of 574.9 million liters capacity of about 380.5 million liters . 4 registered projects undergoing . 3 registered projects undergoing construction with a total annual construction with a total annual combined combined capacity of 292.65 million capacity of 113 million liters liters Feedstock used: Feedstock used: . Coconut oil (current) . Sugarcane, molasses (current) . Jatropha (completed pilot study) . Sweet sorghum, cassava, macroalgae . Waste cooking oil, microalgae , rubber (completed pilot study) seed oil (under study) . Nipa sap, cellulosic materials (under study) Department of Energy Empowering the Filipinos Policies and Issuances Joint Administrative Order No. 2008-1, Series of 2008 providing the “Guidelines Governing the Biofuel Feedstock Production, and Biofuels and Biofuel Blends Production, Distribution and Sale under Republic Act No. 9367” Department Circular No. DC2009-02-0002 “Mandating a Minimum of 2% Blend of Biodiesel in all Diesel and 5% Bioethanol in Annual Total Volume of Gasoline” Department Circular No. DC2011-02-0001 “Mandatory Use of Biofuel Blend” - a minimum of 10% blend of biofuel by volume into all gasoline fuel distributed and sold by each and every oil company Department of Energy Empowering the Filipinos Policies and Issuances Department Circular No. DC2011-12-0013 “Utilization of Locally- Produced Bioethanol in the Production of E-Gasoline Consistent with the Biofuels Act of 2006” - mandates the use of locally-sourced biofuels and exhaustion of its supply before importing biofuels that will be blended with liquid fuels for motors and engines sold in the Philippines - Creation of the National Biofuel Board - Bioethanol Committee Conduct monthly allocation and compliance meeting among bioethanol producers and oil companies Publish a monthly price index for bioethanol based on data from SRA and DA Department Circular No. DC2015-06-0007 “Revised Guidelines on the Utilization of Locally-Produced Bioethanol in the Production of E- Gasoline” - amendments on DC2011-12-0013 which include elimination of the notice of allowable bioethanol importation (NABI), the consideration of major equipment breakdown, among others. Department of Energy Empowering the Filipinos OVERALL OBJECTIVE BIOFUELS ROADMAP (2018-2040) BY 2040 SHORT-TERM MEDIUM-TERM LONG-TERM (2018) (2019-2022) (2023-2040) B2 B2 / B5 B5 / B10 Maintain 5% Maintain 2% • Maintain 2% biodiesel biodiesel blending biodiesel blending on diesel on diesel and BIODIESEL blending on until 2019 possible 10% blends diesel • 5% blend on 2020 depends on availability of feedstock • Revisit blending requirement and available feedstock • Continuous conduct of research and development on feedstock sources E10 E10 / E20 BIOFUELS BIOFUELS ACT OF 2006 (R.A. 9367) BIOETHANOL Review the bioethanol mandate Department of Energy PURSUE THE DEVELOPMENT PURSUE THE DEVELOPMENT OF BIOFUELS COMPLIANCE IN THE WITH Empowering the Filipinos PERFORMANCE ASSESSMENT OF THE NATIONAL BIOFUELS PROGRAM Department of Energy Empowering the Filipinos Where are we now? BIOETHANOL BIODIESEL Supply Supply • 12 accredited bioethanol producers with • 11 accredited biodiesel producers with total production capacity of total production capacity of 574.9 380.50 MLPY as of end 2018; MLPY as of end 2018; • Additional capacity of 113 ML will be • Additional capacity of 292.65 ML will on-stream beginning 2020. be on-stream beginning 2020. Demand Demand • Total sales of local bioethanol reached • Total sales of local biodiesel reached 303.73 ML in 2018 or an increase of 205.24 ML in 2018 as compared to 29% compared to 2017 level; 203.61 ML in 2017; • About 217 ML or 46% of volume • Equivalent to 10.262 billion liters of 2% requirement for E10 mandate as of end biodiesel-blended diesel (B2) sold in September 2018; 2018. • Imports filled in the deficit and sourced from the US, Australia, South Korea, among others. Department of Energy Empowering the Filipinos Biodiesel Producers REGISTERED CAPACITY BIODIESEL PRODUCERS PROJECT LOCATION (million liter/year) Accredited 1 Phil. Biochem Products, Inc. Brgy. Buli, Muntinlupa City 40 2 Chemrez Tecnologies, Inc. Bagumbayan, Quezon City 90 3 Mt. Holly Coco Industrial, Inc. Lucena City, Quezon 60 4 Pure Essence International, Inc. Bagong Ilog, Pasig City 72 5 Golden Asian Oil International, Inc. Bagong Ilog, Pasig City 60 6 Bioenergy 8 Corporation Sasa, Davao City 30 7 Tantuco Enterprises, Inc. Tayabas, Quezon 90 8 JNJ Oleochemicals, Inc. Lucena City, Quezon 63.3 9 Freyvonne Milling Services Toril, Davao City 15.6 10 Phoenix Petroleum Philippines, Inc. Villanueva, Misamis Or. 24 11 Econergy Corporation General Santos City 30 TOTAL 574.9 Undergoing Construction 1 Bio Renewable Energy Ventures, Inc. Jasaan, Misamis Oriental 150 2 Archemicals Corp. Tagoloan, Misamis Oriental 15 3 Greentech Biodiesel Inc Gumaca, Quezon 100 4 Voice Development Corporation Tayabas, Quezon 27.65 TOTAL 292.65 Department of Energy Empowering the Filipinos Bioethanol Producers REGISTERED CAPACITY BIOETHANOL PRODUCERS PROJECT LOCATION (million liter/year) Accredited 1 San Carlos Bioenergy, Inc. San Carlos City, Negros Occ. 40 2 Leyte Agri Corporation Ormoc City, Leyte 9 3 Roxol Bioenergy Corporation La Carlota, Negros Occ. 30 4 Green Future Innovations, Inc. San Mariano, Isabela 54 5 Balayan Distillery, Inc. Calaca, Batangas 30 6 Far East Alcohol Corp. Apalit, Pampanga 15 7 Kooll Company, Incorporated Talisay, Negros Occidental 30 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp, Inc. Nasugbu, Batangas 30 11 Victorias Milling Company, Inc. Victorias City, Negros Occ. 16.5 12 Progreen Agricorp, Inc. -Balayan Balayan, Batangas 66 TOTAL 380.5 Undergoing Construction*/Financial Closing** 1 Cavite Biofuels Producers, Inc.* Magallanes, Cavite 38 2 Canlaon Alcogreen Agro Ind’l Corp.** Bago City, Negros Occ. 45 3 Asian Alcohol Corporation* Manapla, Negros Occidental 30 TOTAL 113 Demonstration Facility Nasugbu, Batangas 2 wet tons bagasse/day 1 NSEBIO CO., LTD. Philippine Branch Department of Energy Empowering the Filipinos Actual Annual Biofuel Report Undergoing 2017 2018* Construction Accredited (in million liters) (in million liters) # of Annual # of Annual Production Sales Production Sales Projects Capacity Projects Capacity Biodiesel 4 292.65 11 574.9 219.61 203.61 219.98 205.24 Bioethanol 3 113 12 380.5 234.65 234.90 295.54 303.73 Note: *as of December 2018 Department of Energy Empowering the Filipinos Bioethanol Production Plants 9ML Leyte Agri Corporation Bioethanol Plant 66ML Progreen Agricorp, Inc. Bioethanol Plant Ormoc City, Leyte Balayan, Batangas 30ML Universal Robina Corporation Bioethanol Plant Bais City, Negros Occidental 54ML Green Future Innovations, Inc. Bioethanol Plant San Mariano, Isabela Department of Energy Empowering the Filipinos Biodiesel Production Plants 63.3ML JNJ Oleochemicals, Inc. Biodiesel Plant 90ML Chemrez Technologies, Inc. Biodiesel Plant Lucena City, Quezon Bagumbayan, Quezon City 40ML Phil. Biochem Products, Inc. Biodiesel Plant 15ML ARChemicals Corp. Biodiesel Plant Buli, Muntinlupa City Tagoloan, Misamis Oriental Department of Energy Empowering the Filipinos Monitoring of Biofuels Production Plants Department of Energy
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