BIOFUELS ACT of 2006 RA 9367

Overview of the Biofuels Act Reduce dependence on imported fuels to – Protect public health – Protect the environment and natural ecosystems – Promote economic growth Biofuels include: – Bieothanol A LGHT ALCOHOL IS PRODUCED BY FERMENTING cho SUCH AS STARCH OR SGAR, IN VEGETABLE MATTER – Biodiesel IS A FUEL EXTRACTED FROM PLANT OILS. IT CAN BE USED IN DIESEL ENGINES WITHOUT ANY NEED FOR MODIFICATION COCONUT AND JATROPHA

Overview of the Biofuels Act Possible sources of biofuel – Feedstock Government agencies – DENR – DOE – DOLE – DOF – DOST – DTI

Advantages Incentives for Biofuel Producing Firms Conservation of Biodiversity Promotion of publich health Engine Efficiency and Increased Mileage Over-All Economic Facelift

Disadvantages Increased Pace of Environment Deterioration Increase in Food Prices The Perennial Oil Price Hike

Salient Features Phasing out of the use of Harmful Gasoline Additives and/or Oxygenates Within six months from the law’s effectivity, the DOE has to ensure the gradual phase out the use of harmful gasoline additives and/or oxygenates. Oxygenates are substances which, when added to gasoline, increase the amount of oxygen in that gasoline blend.

Salient Features Mandatory Use of Biofuels The law also provides that all liquid fuels for motors and engines sold in the Philippines must contain locally-sourced biofuels components as follows: On Biodiesel within three months from the law’s effectivity, a minimum of 1% biodiesel blend in all diesel engine fuels sold in the country within two years from the law’s effectivity, a minimum of 2% biodiesel blend, upon the recommendation of the National Biofuels Board (NBB) On Bioethanol within two years from the law’s effectivity, a minimum of 5% bioethanol blend in all gasoline fuel sold and distributed by every oil company within four years from the law’s effectivity, a minimum of 10% bioethanol blend in all gasoline fuel sold and distributed in the country, upon the recommendation of the NBB

Where are we now? According to the Act: Within two years from the effectivity of this Act, at least five percent (5%) bioethanol shall comprise the annual total volume of gasoline fuel actually sold and distributed by each and every oil company in the country, subject to the requirement that all bioethanol blended gasoline shall contain a minimum of five percent (5%) bioethanol fuel by volume: Provided That the ethanol blend conforms to PNS.

Where are we now? Petron Philippines – Petron opened the 1 st Fuel additives blending plant in Asia- Pacific in 2008 (Subic) – E10 Premium Gasoline (Petron bought the first locally produced fuel grade ethanol in Leyte) Shell Philippines – complies with 2% Biodiesel Blend Mandate – E10 Premium Gasoline Caltex Philippines SEAOIL Philippines – E10 Gasoline (90% gasoline and 10% ethanol) – Biodiesel (BioXceed diesel)

Efforts done by the State to further the Act Hydrocarbon Deposits Found in South Sulu Sea December 1, 2009 Philippines to receive 250M USD from the Clean Technology Fund December 4, 2009 PNOC-AFC to pursue jatropha project (Iwahig Prison and Penal Farm in Puerto Princesa, Palawan) April 10, 2008 Japanese firm starts $600-M coco plantation January 24, 2008