DA, DOE hunt cheaper feedstock for bioethanol
The government is looking to corn and other alternative feedstocks to lower the cost of Philippine bioethanol as it considers increasing the ethanol blend in gasoline to 15 percent from the current 10 percent.
The Department of Agriculture (DA) and Department of Energy (DOE) are studying ways to reduce feedstock costs, maximize idle distillery capacity and expand domestic ethanol production to cut the country’s dependence on imported fuel.
Agriculture Secretary Francisco P. Tiu Laurel Jr. and Energy Secretary Sharon Garin discussed using molasses, sugarcane juice and locally produced corn as feedstocks.
“We are studying these options carefully, and there is potential for them to help bring down gasoline prices,” Tiu Laurel said.
The push comes as locally produced bioethanol remains considerably more expensive than imports. Officials said domestic feedstock has historically cost more, while locally produced ethanol prices are estimated at twice those of imported supplies. Every increase in feedstock costs can add roughly P1 to ethanol prices.
Corn is being considered as a supplement to sugarcane-derived feedstock. The DA said the challenge is sourcing corn at a price that would make ethanol production commercially viable.
The country currently produces an estimated 325 million to 385 million liters of ethanol annually from sugarcane-based feedstock, while existing plants have capacity exceeding 500 million liters.
To protect sugarcane producers, officials said corn would initially be used only for unused production capacity. The DA is also studying improved seeds, mechanization and contract farming to expand corn supply.
Corn can be harvested within 90 to 110 days and produces DDGS, a protein-rich byproduct that can be used in animal feed.
However, higher ethanol demand could also raise corn prices for livestock producers. The DA said this risk must be managed alongside efforts to diversify feedstock.
Palm oil is also being considered as a longer-term source for biodiesel and potentially aviation fuel, although plantations take about three years to mature.
