In a memorandum of understanding, the two government agencies agreed to undertake research and development activities on alternative fuels to specifically promote the advancement of biofuels in the country.
The government has been promoting the use of alternative fuels with the continued rise in the price of imported oil.
"The mounting prices of imported oil wherein the Philippines is almost 100 percent dependent prompted the government to prepare measures that will help the country move away from utilizing imported oil towards greater use of indigenous energy resources, renewable energy and other alternative fuels, thus pursuing a strategy of energy dependence," PNOC-AFC president Peter Abaya said.
With the increasing cost of energy, Abaya said various countries are now exploring alternative sources, thus the need for research and development (R&D) to support the needs of emerging renewable alternative fuel industry in the Philippines.
Abaya said PNOC-AFC and DOST, which are in the forefront of R&D in renewable energy, have agreed to focus their cooperation on collaborative activities on biofuels, technical assistance and capacity building.
PNOC-AFC and DOST will coordinate in the assessment and identification of R&D requirements of alternative fuels, prepare a comprehensive program for alternative fuels based on the assessment conducted by the parties and pursue a continuing capacity-building of technical staff to enhance knowledge and skills.
"We chose DOST as our partner in research and development on alternative fuels because of its expertise in providing central direction for scientific and technological activities. In line with PNOC-AFC’s mandate to explore, develop and accelerate the utilization and commercialization of existing and emerging alternative sources of energy, we are confident that we would be able to bring the country to the forefront of global alternative fuels industry," Abaya said.
As a wholly-owned subsidiary of state-owned Philippine National Oil Co., PNOC-AFC has the primary purpose to explore, develop and accelerate the utilization and commercialization of existing and emerging alternative sources of energy and technologies and carry on the business of alternative fuels and other related activities.
The Biofuels Act, signed into law in January 2007, mandated the DOST to identify and develop viable feedstock for the production of biofuels and implement a research and development program supporting a sustainable improvement in biofuel production and utilization technology.