Philippines Consumption of Biodiesel Expected to Rise Further

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July 25, 2022

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by Danessa Rivera (The Philippine Star) The country’s biofuel consumption is expected to continue to recover this year on the back of economic growth, as well as the increase in ethanol and biodiesel demand, according to the United States Department of Agriculture (USDA).

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In terms of production, the USDA said biodiesel production may rise by 25 percent to meet the demand from the B5 biodiesel blend.

The increase from the current two percent biodiesel blend (B2) to five percent is anticipated after the Department of Energy (DOE) revised the biofuels roadmap posted on its website.

“The blend target for B5 is set for 2022 and E20 beyond 2025,” the USDA said, citing the DOE roadmap.

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But with the update in the DOE roadmap, the USDA said the industry is prepared to meet the biodiesel demand once the higher blend is implemented.

“The rated production capacity of 707.9 million liters per year is a result of the industry’s overexpansion in anticipation of the B5 blend and is now more than enough to cover the required blending for 11 billion liters of diesel consumption,” it said.

As for ethanol production, it is projected to slow by 1.4 percent to reach 360 million this year due to feedstock problems.

This is despite the overcapacity of fuel ethanol plants due to the unexpected shift of seven potable alcohol producers to fuel ethanol following the implementation of a 22-percent excise tax on potable alcohol, the USDA said.

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Currently, local producers can only supply 50 percent of the bioethanol requirement for the 10 percent gasoline blending while the other 50 percent is served by ethanol imports, which are mainly sourced from the US.

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During the three-day US agricultural trade mission, the US Grain Council (USGC) signed a memorandum of understanding (MOU) with Mariano Marcos State University (MMSU) to facilitate the exchange of expert knowledge, technical information, and best practices related to the biofuels industry and policy development. READ MORE

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