USDA forecasts recovery in PHL biofuel consumption
THE US Department of Agriculture (USDA) said Philippine biofuel consumption is expected to recover this year as demand for fuel ethanol grows.
The USDA added that biodiesel production is also expected to increase by about 8% to meet growing demand.
In a report, the USDA expects Philippine fuel ethanol consumption to increase 8% to 693 million liters in 2023, which would exceed the pre-pandemic level of about 614 million liters in 2019.
The USDA expects biodiesel consumption to grow 14% to 230 million liters, which would exceed the 202 million liters consumed last year. If the 2023 forecast pans out, it would remain lower than the 231 million liters consumed in 2019.
The USDA expects Philippine ethanol production to remain flat at around 375 million liters due to feedstock problems.
“There is no immediate solution to insufficient feedstock for fuel ethanol production. There are recommendations to use corn as feedstock, but this would run counter to the government’s food security program and would require huge investments to establish plants,” it said.
“Domestically-produced bioethanol uses mostly sugarcane 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 USDA added.
The biofuel blend in the Philippines is set at 10% ethanol (E10); the biodiesel blend 2% (B2).
The USDA expects Philippine fuel ethanol imports for 2023 to increase 12% to 310 million liters to fill the gap in local production. — Ashley Erika O. Jose
