The Philippines’ biofuels consumption is expected to recover this year due to economic growth, according to the United States Department of Agriculture (USDA).
In a report dated June 9, the agency said fuel ethanol demand is set to grow 7.6 percent to 693 million liters from last year’s 644 million liters as biodiesel demand will increase by 13.9 percent to 230 million liters from 202 million liters.
Petroleum oil products sold in the country must be blended with 10 percent ethanol and 2 percent biodiesel. Several proposals to raise the current blend are being discussed in Congress.
The USDA sees the Philippines’ production of fuel ethanol to be flat at 375 million liters and of local biodiesel to grow by 8.4 percent to 220 million liters from 203 million liters last year.
The report said limited feedstock continues to be a challenge as locally, ethanol is mainly derived from sugar cane while biodiesel is sourced from copra.
“Domestically produced bioethanol uses sugarcane mostly molasses as feedstock, while biodiesel feedstock is from coconut. Policy implementation is focused on production and consumption with no policies issued to incentivize lower carbon intensity of existing biofuels over time, another signal of stagnation,” the report said.
The USDA sees Philippine fuel ethanol imports for the year to grow by 11.9 percent to 310 million liters from 277 million liters, to fill the gap from short local production.
