A fresh breeze is sweeping across the Philippine archipelago, signaling the end of the nearly three-month heat wave that scorched Filipinos and our neighbors in Southeast Asia.
Expect cleaner air in the coming months with the commendable decision of the Department of Energy (DOE) to mandate higher biofuel blends in diesel and gasoline products. The landmark Biofuels Act of 2006 mandates that all liquid fuels for motors and engines sold in the country be blended with biofuels.
Biofuels are alternative fuel sources that are made from biomass. When burned, they produce fewer emissions particulates, sulfur dioxide, and other toxic air pollutants such as the ones emitted by fossil fuels (oil, coal, and natural gas). By combining biofuels with petroleum products, they reduce emissions that are harmful to both people and the environment.
Sen. Juan Miguel Zubiri, who was then representing Bukidnon, was the principal author of the House bill that became Republic Act No. 9367 or the Biofuels Act of 2006. Currently, the ethanol blend for gasoline has remained at 10 percent since 2012, while the blending of coco methyl ester (CME) increased to 2 percent in 2007. CME is also known as coco-biodiesel.
Last May 20, the DOE issued Department Circular No. 2024-05-0014, which requires the downstream oil industry participants to implement a 3-percent CME blend in all diesel fuel sold nationwide starting Oct. 1. Gradually, the percentage will increase in the next two years, reaching 4 percent in 2025 and 5 percent in 2026.
“Based on a 30,000-kilometer on-road test with a higher CME blend of 5 percent, an increase of around 10 percent in mileage corresponds to an estimated net savings of P4.17 per liter of diesel,” the DOE said.
But nothing prevents oil companies from raising the ethanol blend in gasoline fuel by as much as 20 percent from the current 10 percent to reduce domestic pump prices. Estimates peg the savings at P3.21 per liter of gasoline.
The new guidelines make sense from both economic and environmental perspectives. A higher blend of biofuels provides a cushion to the transport sector and the paying commuters from the endless hikes in oil prices. More importantly, it supplements our Nationally Determined Contribution, a document that spells out our action to limit global warming to 1.5 degrees Celsius by achieving net zero carbon dioxide emissions globally.
This space has been drawing attention to the flaws in the draft Philippine Energy Plan 2023. International bodies said it missed the mark for failing to include plans to phase out fossil fuels.
I am therefore impressed with Energy Secretary Raphael Lotilla’s political will to finally implement the provisions of RA 9367. Increasing the percentage of biofuels in both gasoline and diesel is a step in the right direction.
By providing a low-carbon solution for hard-to-abate sectors like trucking, shipping, and aviation, biofuels can help decarbonize the transport sector, as stated by the International Energy Agency. As biofuels can often be used in existing engines with little or no modification, the biofuel blend can help reduce carbon emissions that contribute to climate change. But it is only through the development of renewable energy sources to near-100 percent that we can achieve net zero carbon emissions by 2050.
For now, Lotilla said “the higher biofuels blend is a win-win solution as we promote economic growth, uphold environmental stewardship, and strive for cleaner energy utilization. It is also about investing in a future where sustainability drives progress.” The DOE said the move “aims to decrease dependence on imported fuels, reduce greenhouse gas emissions, and bolster the local biodiesel and bioethanol sectors.”
But how will it impact our coconut industry, whose farmers are the poorest in this country? The mandated increase in the CME blend for diesel will create an additional market for coconut farmers, biodiesel producers, and other stakeholders in the coconut industry, “with around 900 million additional nuts as feedstocks to produce around 100-120 million liters of additional CME requirements to satisfy a 1-percent mandatory increase in CME blend,” the DOE said.
Critics have been delaying the full implementation of the Biofuels Act by citing its impact on food security, such as growing biofuel crops. But with the new policy focused on CME, the question remains: Where will we get all those coconuts?
We have a lot. The Philippines is the second largest exporter of coconut products after Indonesia. According to Statista.com, the Philippines’ global production volume reached 14.93 million metric tons in 2022. Our country is also the world’s main producer of virgin coconut oil. Selling them locally is the way to go now that the DOE has opened up a market for those coconuts.
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