DOE taps UPLB expert for biodiesel impact study

MANILA, Philippines - After missing its target implementation for the five percent blended biodiesel (B5), the Philippines will start the study on a new roadmap for biodiesel oil to determine supply and demand as well as its impact on prices.

The Department of Energy (DOE) has engaged University of the Philippines-Los Banos (UPLB) economics professor U-Primo Rodriguez to do the impact study of biodiesel in the country, DOE Secretary Zenaida Monsada said on the sidelines of Shell’s Energy Forum Powering Progress Together Asia.

“We just signed the contract for the consultant to undertake the study last week,” she said.

The study was originally scheduled to start last year but the consultant was then engaged in another project outside of the country, she explained.

In February 2015, the National Biofuels Board (NBB) commissioned UPLB to do further study on the impact of the higher blended biodiesel on the coconut industry to ensure farmers would benefit from the B5 implementation.

The NBB is composed of representatives of the energy, agriculture, agrarian reform, science, labor and environment departments, the Philippine Coconut Authority and the Sugar Regulatory Administration.

Now that the contract is signed, Monsada said the study will be started soon but completing it may not happen before the Aquino administration ends.

“The DOE will be keeping a close engagement with the consultant,” she said.

Several countries have implemented the use of biofuels mainly to cut greenhouse gas emissions, as part of mitigating climate change risks, and for energy security, Shell Global Solutions fuel scientist Mae Ascan said in a briefing yesterday.

“In reality, two of the key reasons or drivers on the use of biodiesel is to reduce CO2 emissions, greenhouse gas. That’s why Europe is introducing biodiesel. In other countries, it’s energy security, reducing independence to importation of oil,” she said.

Currently in Asia, Malaysia has implemented has implemented a seven percent blend in biodiesel; Thailand also a seven percent blend in biodiesel, and has 10-percent, 20-percent and 85-percent variants of ethanol blend; Indonesia has a 20-percent blended biodiesel and five percent blend ethanol.

In the Philippines, the Biofuels Act of 2006 mandates the amount of coconut oil for fuel to be blended with diesel may be increased taking into account such considerations as domestic supply and availability of locally sourced biodiesel.

From the two percent blend since 2009, the biodiesel blend was supposed to be increased to five percent in 2015 then raised to 10 percent and 20 percent by 2020 and 2030, respectively.