In the middle of the controversy over the Biofuels Act, it might do much good to revisit one of the main events that helped catalyze its approval by Congress. On May 3, 2006, President Gloria Macapagal Arroyo inaugurated what was then Asia's largest biodiesel plant: the Chemrez Technologies coco-biodiesel plant, with a capacity for 60 million liters per annum and constructed with an investment of PHP 650 M.

The inauguration of this plant did not only signal the coming of age of the biodiesel industry. It also demonstrated that the Biofuels Act that was then being contemplated was doable, and not mere speculation. The rest, as they say, is history. The Biofuels Act was passd later that year.

Perhaps we need to remind people that, before the Biofuels Act was passed, Congress, the Departments of Agriculture and Energy and the biofuels industry had been faced with precisely the same questions that are now being raised by the media against this Act. These same questions had been raised then and already answered after exhaustive investigation and study, much of it under the same senator who is now questioning certain aspects of the Biofuels Act.

Q & A on the Biofuels Act Controversy

Ever since Mr. Hartmut Michel, 1998 Nobel Prize winner for Chemistry, issued his broadside against Philippine biofuels policy last January 9, controversy and debate have raged over the Biofuels Act and the allegedly negative effects that it might have on Philippine environment and food security. Unfortunately, certain media entities have latched upon the issues raised by the professor without carefully inquiring whether these issues are applicable in the Philippine context. Biofuels is a a vast field, and issues raised in Europe and the United States or even in Malaysia and Indonesia are not necessarily applicable in the Philippine context.

It should be noted that most of the critics are using the issues that have been raised against jatropha biodiesel and ethanol in order to pull down a law that, for now, relies exclusively upon coco-biodiesel. We must make a distinction between coco-biodiesel and jatropha biodiesel and not confuse the issues. At present, coco-biodiesel is the only biodiesel in commercial use in the Philippines. While there has been some interesting and promising research, jatropha is still in the experimental stages and it is still hypothetical and premature to talk about systematic jatropha planting and processing for biodiesel. B2 will most likely be implemented (either later this year or early next year) using coco-biodiesel, given that jatropha will not yet be commercially available in the medium term.

Q: Will the Biofuels Act cause hunger?

A: NO. The implementation of a B1 and B2 blend is being done and will be done using surplus coconut oil and will not compete with food use. The Philippines produces 1.4 billion kg of coconut oil, of which we use only 400 million for domestic consumption for both food and oleochemicals (the other 1 billion kg. is exported as crude coconut oil). Furthermore, both foreign and domestic consumption of coconut oil is rapidly shrinking, resulting in enough surplus coconut oil for biodiesel use. In theory, we actually have enough coconut oil for B5 without harming our food requirements.

Q: Will the Biofuels Act result in the destruction of forest lands?

A: NO. The Biofuels Act, in the B1 and B2 stages, utilizes coconut oil that comes from existing coconut plantations. As for the implementation of higher blends and the consequent planting of more biofuels crops, this need not endanger our forests since there are 14-15 million hectares of denuded and idle lands in the Philippines, which can be used for the planting of coconut, jatropha, and other plants that can be used as biofuel feedstocks (it is estimated that there are more than 50 plants in the Philippines that can be used for our biofuels needs.) Not a single hectare of forest need be cleared for biofuels. In fact, planting denuded and idle lands to biofuels crops will play an important role in re-greening and re-foresting the Philippines.

Q: Will the Biofuels Act result in more, not less global warming?

A: NO! Contrary to statements implying that all biofuels will result in net CO2 increase, coco-biodiesel can actually lessen CO2 and Greenhouse Gas Emissions, by a ratio of roughly 3 kgs of CO2 reduced for every liter of coco-biodiesel used.

Q: There so much international criticism against biofuels worldwide. Do these apply to the Philippines?

A: NO, the international criticisms against biofuels are due mainly to the situation in the USA (where corn prices are rising due to ethanol), Europe (where there is too little rapeseed oil to satisfy all markets) and Malaysia / Indonesia (where forests are being cut down to make way for palm plantations). The Philippine situation is completely different and there is no reason for alarm. Coconut prices are rising not because of coco-biodiesel but because of the general international trend of rising plant oil prices (esp. soya, palm, rapeseed). As already stated, there is much surplus coconut oil that can be used for coco-biodiesel, and forest lands are neither being cleared nor need to be cleared to make way for increased coconut production. Speaking of forest lands: it should be noted that coconut trees live for up to 60 years and that coconut plantations do not need constant replanting. This answers the concerns of certain environmentalists, who fear that the constant replanting of biofuel crops will result in more CO2 release into the atmosphere.

One financier's testimony about his own experience with coco-biodiesel (at a mere 1.7 % blend) has been posted at the Finance Manila blog. Excerpt:

The experiment was confined within the following parameters: One 2.2 Crdi Hyundai Santa Fe with approximately 70 liters fuel tank capacity, one canister of Bioactiv measuring 500ml, and one full tank's worth of diesel from Shell, allegedly complying with the 1% Biodiesel requirement.
Checking the manual pamphlet, it was stated that the vehicle could accomodate even up to a 5% biodiesel blend without damaging the engine, so placing 500ml on a full tank with Shell's already included b1 blend would be far off from the 5% limit.
To cut the report short, regular daily traffic in city driving previously gave a mileage of around 7.5 kilometers to the liter, but with the addition of Bioactiv, it increased my mileage to 8.3 km/l under the same driving conditions!

The rest of the article cites material from the studies of Rafael S. Diaz, Managing Director of the Asian Institute of Petroleum Studies. His work on behalf of coco-biodiesel will be a topic for future posts. Abangan!

An Introduction

Now that the Biofuels Act of 2006 is being implemented full swing in the Philippines, there is also a growing need for informational articles and educational programs about biofuels. In particular, there is an urgent need for the Filipino people to be educated about coco-biodiesel, which is currently the only form of biofuel that is being legally used in the Philippines.

Since May 6, 2007, all diesel sold in the Philippines must have a 1% component of coco-biodiesel. This blend component is also known as "B1" (B=blend, 1=1%) and can be sourced only from coco-biodiesel manufacturers duly approved by the Philippine Department of Energy (PDOE or simply DOE) and possessing a permanent CFAR (Certificate of Fuel Additive Registration). In contrast, the Biofuels Act's mandate for an E5 blend of ethanol in gasoline will take effect only in 2009.

This blog will be dedicated to the following goals:

1) The presentation of articles that will systematically educate people about the basics of coco-biodiesel.

2) Reporting on all current and important issues facing the biodiesel industry

3) The publication of occasional papers, articles and op-eds regarding biodiesel in general and coco-biodiesel in particular

Where necessary, posts will be followed or intercalated with commentary.