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Manila Bulletin devider Business devider USDA expects Philippine demand for biofuels to increase

USDA expects Philippine demand for biofuels to increase

Published May 16, 2024 07:41 am

The consumption of biofuel in the Philippines is expected to increase this year due to a rise in fuel pool and the expected adoption of higher blending standards, the US Department of Agriculture (USDA) said.

The USDA projected that the demand for fuel ethanol in the country would rise by eight percent to 682 million liters, while biodiesel would have a marginal increase of 0.8 percent to 240 million liters from the 230 million liter expectation in 2023.

Additionally, ethanol production would likely jump to 395 million liters from 375 million liters predicted from last year.

The USDA also noted that the fuel pool expansion would cause the expected recovery of biofuel utilization would align itself with the country’s economic recuperation, stating that there will be “potential for greater growth if higher blending standards are fully adopted.”

Last January, the Department of Energy (DOE) announced its preparations to target a larger ethanol blend for gasoline products from 10 percent of volume to 20 percent, within certain standards.

These terms would get a collaborative effort with the Department of Environment and Natural Resources (DENR), the Bureau of Product Standards (BPS), and the Department of Science and Technology (DOST), among others.

“The feedstock problems remain and imported ethanol will fill the gap, growing by 14 percent to 280 million liters in 2024,” the USDA reported.

Feedstock consists of biomass generated from algae, plants, and animals that produce biofuels.

Moreover, the American agriculture sector mentioned that the 20 percent ethanol for gasoline, or the E20 blend, and the 3 percent biodiesel (B3 blend) would still need the DOE’s decision to release a circular stating the necessary guidelines on the roll-outs for these two fuel blends.

Related Tags

biofuel Department of Energy (DOE) USDA
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