Increased Phl ethanol output seen next year

USDA said blend compliance, monitoring, and enforcement remain concerns mainly due to the archipelagic and geographical terrain of the Philippines.

The construction of new distilleries is expected to boost Philippine ethanol production in 2020, according to the United States Department of Agriculture (USDA).

In its latest country report on Philippine biofuels, USDA said although no new plants were finished in 2019, two distilleries with a combined capacity of 68 million liters (ML) are undergoing construction and are due to be completed in 2020.

Thus, USDA said the production is again likely to increase when the two additional distilleries begin operations.

By international standards, Philippine ethanol plants supplying fuel ethanol used for commercial operations are small in scale. In 2018, there were 12 fuel ethanol plants operating with a 380 ML. This was 35 percent higher than the 282 ML aggregate capacity in 2017.

Before year-end, Ethanol output is projected to increase 8 percent to 320 ML from 296 ML in 2018 due to improved capacity utilization.

In terms of trade, ethanol imports are projected to increase by 23 percent to 345 ML from 285 ML in 2018.

The USDA noted that although ethanol consumption — which is largely a function of the mandated blend — has risen over the last decade, it slowed considerably in 2014 and has remained largely flat since then.

USDA said blend compliance, monitoring, and enforcement remain concerns mainly due to the archipelagic and geographical terrain of the Philippines.

“The distribution infrastructure is inadequate and has compounded inefficient feedstock production and milling operations. As a result, high prices characterize vital links in the ethanol production-distribution system,” the report said.

Blending coco-biodiesel or coconut methyl ester (CME) with diesel started in 2007 following the enactment of the Republic Act 9367 or the Biofuels Act of 2006.

During its first year of implementation, diesel was mixed with only one percent CME. This was doubled in 2007 and has remained at that level since. Under the Philippine Energy Plan 2012-2030, biodiesel should contain at least 5 percent CME by 2020.