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Coco-methyl Ester (CME) or Coco-Biodiesel

Implementing Biofuels Programme in the Philippines Mario C. Marasigan Director Energy Utilization Management Bureau Department of Energy. Alternative Fuels Program. Coco-methyl Ester (CME) or Coco-Biodiesel. Ethanol. Jatropha Curcas “Tuba Tuba” or “Tubang Bakod”.

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Coco-methyl Ester (CME) or Coco-Biodiesel

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  1. Implementing Biofuels Programme in the PhilippinesMario C. MarasiganDirectorEnergy Utilization Management BureauDepartment of Energy

  2. Alternative Fuels Program Coco-methyl Ester (CME) or Coco-Biodiesel Ethanol Jatropha Curcas “Tuba Tuba” or “Tubang Bakod” To achieve energy independence and fuel diversification while meeting environmental challenges through the utilization of alternative fuels Others (autogas, hybrid, EV) Natural Gas

  3. ENERGY SUPPLY AND DEMAND

  4. POTENTIAL FUEL DISPLACEMENT • Coco-Methyl Ester (CME) or “Coco-Biodiesel” • Bioethanol

  5. COCO-BIODIESEL PROGRAM WHY COCO-BIODIESEL? • Economic benefits to the coconut industry • Provide and establish long-term sustainable alternative domestic market • Increased income for 3.5 million coconut farmers • Potential improvement in the income of 25 million Filipinos dependent on the coconut industry • Economic benefits to the country • Enhance energy independence • Indigenous renewable resource • Reduction in diesel fuel importation • Forex savings

  6. FACTSABOUTCOCO-BIODIESEL Fact 1: Fossil diesel is made up of non-polar compound molecules of hydrogen and carbon better known as hydrocarbon. Biodiesel is made up of polar compound molecules of hydrogen and carbon, plus oxygen. It is classified as oxygenated fuel. Fact 2: Hydrocarbons have chemical energy (heat) value ranging from 18,000 BTU/lb to 22,000 BTU/lb. Coco-Biodiesel has slightly lower heat value than kerosene. Fact 3: Age of engine, poor maintenance, and imperfect fuel quality put together result in wasted energy estimated to range from 10% - 30% (or even more) depending on engine condition. With diesel currently costing P32.7 per liter, wasted amount is P3.27 to P9.81 per liter of fuel used.

  7. FACTSABOUTCOCO-BIODIESEL Fact 4: Black and white smoke emission are incompletely burned and unburned hydrocarbon representing such wasted energy (or wasted money) and are products of poor combustion. Coco-Biodiesel promotes efficient combustion to transform the wasted energy to useful energy – added mileage. Fact 5: There is absolutely nothing a motorist can do to reduce fuel cost in Peso/liter. But there are many things a motorist can do to reduce fuel cost in Peso/kilometer. Fact 6: Any and all efforts to “improve” combustion “reduces” emission and “increases” mileage. These are direct relationship.

  8. FACTSABOUTCOCO-BIODIESEL Fact 7: Coco-Biodiesel has similar hydrocarbon structure as diesel except that it has lower T90 temperature and its molecular structure is less clustered. Thus, it is superior if used as diesel fuel. However, it also contains features not present in fossil diesel such as 11% oxygen, high solvency, high lubricity, and excellent polarity. For this reason, it also serves as as effective diesel quality enhancer. A 1% blend is substantial enough to attain clean burning. (Source: CME A Practical Solution to Quest for Fuel Economy and Clean Air, Rafael S. Diaz, Asian Institute of Petroleum Studies, Inc.)

  9. OIL & ESTERS CHARACTERISTICS Higher Iodine Value means lower temperature to solidify. Higher Cetane Number indicates a more efficient fuel.

  10. CARBON CHAIN PROFILE (Source : Asian Institute of Petroleum Studies) • CME and Palm Kernel Esters are the only vegetable derived esters (VDE) that contain a full range of C8 to C18. The presence of lighter hydrocarbon atoms give better range of volatility than other VDEs thus better combustibility. It produces better combustibility since it volatilizes even better than diesel.

  11. TECHNICAL DATA: CMEVS. DIESEL

  12. EMISSION REDUCTION AT 1% CME Blend

  13. COST EFFECTS • At 1% blend, additional cost of biodiesel is 2-3% over petroleum diesel. Price of Diesel: P 34 per liter Price of CME: P 86.00 – 130.00 per liter At 1% CME blend, cost of CME-Diesel fuel:

  14. Fuel Economy • Studies shows, there is an average increase of fuel mileage at 1.5 km per liter of 1% CME-Diesel Blend. • A car that travels 2,600 km per month (or 100 km/day for 26 days a month), with a fuel economy of 8 km/liter when using diesel, will have a monthly fuel savings of: • Annual Savings of P 18,506 per vehicle

  15. TECHNICAL VALIDATION • A USDOE/USAID-commissioned NREL Tests were conducted to address the concerns of oil companies and car manufacturers: • Biodiesel quality specification (to determine compliance of CME samples with PNS) • Oxidation stability (to determine how long CME can be safely stored and its behavior under extreme conditions) • Thermal stability (to determine if CME quality changes on various storage conditions) • Microbial growth (to determine microbial growth in CME samples considering microbes cause corrosion in the fuel system and premature filter plugging) • Method for determining biodiesel content in blended fuels

  16. NREL Test Results

  17. COCO-BIODIESEL PROGRAM POLICY INITIATIVES • Philippine National Standards on CME: PNS 2020:2003 (May 2003) • M.C. No. 55: “Directing all Departments, Bureaus, Offices and Instrumentalities of the Government, … to Incorporate the Use of 1% by Volume CME in Their Diesel Requirements” (Feb. 9, 2004) • Alicia (Isabela) Resolution No. 2004-009: “Requiring the Use of CME by All Motorists … in Support of the Clean Air Act” (February 11, 2004) • D.C. No. 2004-04-003: “Rules and Regulations Implementing M.C. 55” (March 29, 2004) • Supreme Court M.C. No. 07-2004: “Directing the Supreme Court, Court of Appeals, Sandiganbayan and the Court of Tax Appeals to Use 1% CME” (June 23, 2004) • Baguio City Resolution No. 154, Series of 2004: “Encouraging the Use of CME by All Motorists … in Support of the Clean Air Act” (June 29, 2004) • D.C. No. 2005-04-003: “Promoting the Use of Coco-Biodiesel as an Alternative Clean Fuel” (March 1, 2005)

  18. Memorandum Circular No. 55 • M.C. No. 55: “Directing all Departments, Bureaus, Offices and Instrumentalities of the Government, … to incorporate the use of 1% by volume CME in their diesel requirements” (Feb. 9, 2004) OBJECTIVES: • To promote the use of Coco-Biodiesel as a cleaner alternative transport fuel • To enhance diversification of fuel sources Compliance result • 80 complying government agencies with 1,150 diesel-fed vehicles blended 1% CME Feedback from users- • 76% reported improved mileage/increased in mileage and 24% uncertain • 80% lighter emission and 20% uncertain or not aware

  19. SALIENT POINTS OF BIOFUELS BILL (BIODIESEL)

  20. BIODIESEL PROGRAM IMPLEMENTATION 2006 2007 2008 2009 2010 2011 2012 2% Biodiesel Blend 5 % biodiesel blend 1% CME • I Implementation of BIOFUELS ACT • II IRR Formulation • III Infrastructure Dev’t • Accreditation of manufacturers/sellers IV Technical validation/Assessment • Laboratory analysis and engine tests • Coconut Plantation/Other feedstock Enhancement • V. Technology compatibility • Availability of flex-fuel vehicles VI. IEC • Tri-media campaign, consultations. Seminars • Monitoring of Implementation 111 M liters 200 M Liters 40M liters For higher blends CME/ JME Biodiesel

  21. BIODIESEL DEMAND PROJECTION Coconut conversion to CME = 1:1 , Coconut oil production apprx. 1.4 billion liters

  22. Coconut Plantation Requirement Basis: 1 hectare = 480 liters CME Present Scenario: 3 M hectares planted to coconut trees, 2.4M metric tons total copra Capacity 4.9 M MT total copra crushing capacity, 1.4 Billion liters total oil production in which 80% is exported, 20% is consumed locally 4 Producing facility of CME with total capacity of 111 million liters /year

  23. JATROPHA BIODIESEL

  24. What has been Done • Meetings were conducted in 2005 with NAPC-NEDA, PNOC, NRDC, AFP and private entities todiscuss the use of Jatropha as biodiesel feedstock leading to the: • development of an implementation plan (activities and timeframe) • identification of the roles and functions of implementing agencies • identification of resources and logistical requirements

  25. What has been Done • Indian mission study represented by DOE, DOST and DA • “Feasibility Study for the Production and Processing of Biodiesel conducted by FAO for DOST • Visits to D1 and PFC plantations in General Santos and Nueva Ecija, respectively

  26. Issues and Concerns (Plantation) • Seed Variety • Source of seeds/seedlings etc. • Oil recovery • Crop management • Hectarage Requirements • Pest management • Economics • Others

  27. Issues and Concerns (Production) • Technology availability • Small scale capacity • Large scale capacity (?) • Standards formulation • Economics against diesel • Intellectual Property Rights • Others

  28. Issues and Concerns (Utilization) • Local and Global Experiences • Vehicle Compatibility • Engine Performance • Emission • Engines and parts durability • Supply Accessibility • Others

  29. Steps Forward • Creation of a Technical Working Group to address issues and concerns on plantation, production and utilization. - Development of biodiesel standard appropriate for Philippine conditions • - Resource and technology assessment, variety identification and improvement and seed system, crop management, characterization of variety, pest management, among others. • Creation of IEC Taskforce on dissemination of right information to farmers and other interested parties.

  30. Steps Forward • Testing of JME samples leading to fuel registration and accreditation. • Identification of production technology for JME • Registration and certification of JME • Biofuels Summit

  31. STATUS PNOC-EDC –established jatropha nursery 5 hectares plantation in Dacong Cogon Negros Occidental in coordination with D1 Oils (3 mos. old) PFC – 35 has. Plantation in Fort Magsaysay Nueva Ecija in collaboration with Phil. Army ( 1 year old) and established nursery in Ligao Albay Provincial Government of Camarines Sur - 10 has. plantation in collaboration with PAFC ( 6 mos. Old) D1 Oils - 200 has. Plantation in Gen. Santos ( 3 mos. Old) Lacto Asia - 17 has. Plantation in Camarines Sur (flowering)

  32. 2005 2006 2007 2008 2009 2010 2011 Jatropha IMPLEMENTATION PLAN • Policy Action • Techno-Economic Study • Creation of focus groups, multi-sectoral / inter-agency linkages • TWG on Fuel / Engine Tests • International cooperation • Standards development / adoption • Supply Infrastructure • Development of Jatropha supply chain • Production of JME/Registration/Accreditation • Technology Assessment • Fuel properties • Engine performance and emissions • Engine durability • Capacity building • R&D • IEC / Market Development • Tri-media campaign, consultations, seminars

  33. BIOETHANOL FUEL PROGRAM • WHY BIOETHANOL FUEL? • Considered as an environmental and economic development strategy: • Reduces dependenceon imported oil • Increases economic activity in the countryside • Employment booster • Environmentally-friendly • Improves combustion and reduces emissions

  34. Fuel Ethanol (Status) Investments/Infrastructure • Launching of the NDC-Bronzeoak Fuel Ethanol and Power Plant in San Carlos, Negros Occidental (May 30, 2005) • Three (3) prospective investors given endorsement for fuel ethanol production • Total capacity of 380, 000 liters /day to start operation by 2008 Supply Development • Launch of the First Fuel Ethanol (E10) Gasoline Fueling Facility of Seaoil (August 29, 2005) • Availability of E10 in all Seaoil gasoline stations nationwide and 4 Flying V stations in Metro Manila • Availability of E10 in Shell gasoline stations in Metro Manila Standards • Philippine National Standard for Bioethanol Fuels promulgated April 2006

  35. Fuel Ethanol Demand and Supply Requirements Present Scenario: 389,000 has. Sugarcane 60 tons sugar/has 70 liters bio-ethanol/ton sugarcane

  36. FUEL ETHANOL PROGRAM IMPLEMENTATION 2005 2006 2007 2008 2009 2010 Voluntary use 10% blend Nationwide 5% blend Nationwide 10% blend • Policy Action • Technical / economic & pricing mechanism study on ethanol production / use on different feedstock • Creation of focus groups, multi-sectoral / inter-agency linkages • International cooperation • Standards promulgation • Legislation (Biofuels Act ) 5% locally 10% locally Imported ethanol • Supply Infrastructure • Ethanol importation • Ethanol production • upgrading (6-8 months) • new facilities (1.5-2 years) • Blending facilities / distribution network • Development of other feedstock supply chain • Technology • Laboratory and engine testing • Capacity building • R&D other feedstock • Technology compatibility • Availability of flexi-fuel vehicles • IEC / Market Development • Tri-media campaign, consultations, seminars

  37. BIOETHANOL DEMAND PROJECTION

  38. SALIENT POINTS OF BIOFUELS ACT

  39. SALIENT POINTS OF BIOFUELS ACT

  40. SALIENT POINTS OF BIOFUELS BILL

  41. SALIENT POINTS OF BIOFUELS BILL

  42. SALIENT POINTS OF BIOFUELS ACT

  43. THANK YOU

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