The Philippine Biodiesel Association (TPBA) eagerly awaits the increase in biofuel content in diesel to 5 percent, saying the approval would reduced the importation of refined fuel while helping farmers cope up with the pandemic.
After Republic Act 9367 or the “Biofuels act of 2006” was signed into law, the blending of 1 percent coco methyl ester (CME) in diesel started. It was then increased to 2 percent in 2007.
Under the Philippine Energy Plan, biodiesel should contain at least 5 percent CME blend by 2020. However, the Department of Energy (DOE) is concerned that this would result in higher pump prices. The agency, in the past, also raised concern on available feedstock.
But the Philippine coconut industry, according to TPBA, assured that there is more than enough feedstock supply and that increase the coco-biodiesel blend in automotive diesel to 5 percent from 2 percent would benefit the farmers.
In a news statement, TPBA said it supports the local coconut farmers’ welfare. TPBA noted that “there is a 5 centavos per liter lien contributed by every CME producer to the Department of Labor and Employment’s Social Amelioration and Welfare Program, which provide funds for the livelihood and training programs for coconut farmers and biodiesel workers.”
The required annual CME volume to support the shift to B5 blend is 632 million liters, representing 5 percent of diesel demand of 12.64 billion liters for full year 2021.
Based on studies by the coconut industry, some 4.3 billion nuts are needed to supply the projected B5 demand. TPBA said production is estimated to reach 17 billion nuts for this year. By 2025, the projected feed stock supply is pegged at 20 billion nuts.
The anticipated strong domestic demand created by the B5 program will stabilize the price and demand for copra, encouraging farmers to plant more, TPBA pointed out.
“The gains on B5 had been cited many times in terms of cleaner air, increased mileage and savings for motorists, attaining public health through clean air and alleviating poverty among coconut farmers,” said leading biodiesel advocate and consultant Engr. Rafael Diaz.
“High levels of air pollutants and total suspended particulates [TSP] are causing spike in respiratory ailments that weaken the lungs and making it more prone to Covid transmission.
“There is a sort of environmental ‘TSP immunization’ uniquely ready now in the Philippines. It is by simply blending 5 percent CME [B5] in diesel fuel which guarantees clean engine combustion. It eliminates emission of air pollutants ensuring public health wellness from respiratory ailments,” Diaz claimed.
The shift to B5 would also translate to foreign exchange savings on fuel import amounting to nearly P13.6 billion per year, said TPBA.
Diaz also cited the potential savings for motorists. He said there is a 6-percent to 10-percent increase in mileage gain using the coco biodiesel B5 blend. This, he pointed out, translates to a net fuel cost savings ranging from P1.50 to P3.00 per liter of B5 diesel based on current pump prices.