Energy authorities may put off raising the alternative fuel content of the biodiesel blend to 5 percent from the current 2 percent, Department of Energy OIC Zenaida Monsada told reporters.
“On B5, we are still waiting for the results of the study, and then of course final recommendation and everything,” Monsada said, referring to the impact study being conducted by an institution within the University of the Philippines Los Baños (UPLB).
“The decision can be made this year but the implementation can be next year,” she said.
DOE earlier said the target was to increase the blend to 5 percent biodiesel (B5) by the end of this year.
However, Monsada said that may not happen since the study and recommendations had not been finalized and released. The current 2 percent blend has been in place since February 2009.
Monsada said technical concerns had been “cleared” and the authorities were just waiting for the results of the UPLB study. Monsada added that local coconut production was sufficient to meet the increased demand for coconut oil.
Coconut oil is milled before it is converted into coconut methyl ester (CME), which is the country’s version of biodiesel.
Wanting to ensure that the increased blend will benefit coconut farmers and at the same time not cause too much burden on motorists, biofuels authorities undertook two studies.
The National Economic and Development Authority worked on a study on the impact of the increased blend but in February 2015, UPLB was tapped for further assessment.
The National Biofuels Board (NBB) said it commissioned the study to evaluate the impact of increasing the biodiesel blend to 5 percent.
The NBB is mandated by the Biofuels Act of 2006 to review and implement biodiesel blends.
“We want to consider the impact on the agriculture sector, specifically the coconut industry. We want to be sure that the farmers will really benefit from this,” Monsada explained.
At the same time, she said, “We don’t want the motorists to rally because of higher prices due to increased blend.”
Under the Philippine Energy Plan 2012-2030, the DOE aims to increase the biodiesel blend to 5 percent from the current 2 percent.
By 2020 and 2030, the target is to raise the blend to 10 percent and 20 percent, respectively.
In 2012, the PCA asked the NBB to fast-track the increase of the mandated blend to keep up with the worldwide fuel charter. Under the Biofuels Act, the blend may be increased taking into account considerations such as domestic supply and availability of locally sourced biodiesel components such as CME.
The Department of Agriculture has also been pushing for the increased blend to assist the coconut industry.
The government originally planned to accelerate the implementation of the increased blend in response to the calls from various stakeholders.
But implementation lagged when Supertyphoon Yolanda ravaged key production areas.