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This workshop presentation details the Department of Energy's initiatives in fuel quality development in the Philippines, covering conventional and alternative fuels, standards setting, regulatory roles, and ongoing initiatives. It outlines the historical fuel quality specifications, alternative fuel blends, and government thrust towards continuous quality improvement and enforcement. The document also discusses the role of different stakeholders in ensuring cleaner fuel initiatives and regulatory compliance.
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Fuel Quality Development in the Philippines By Zenaida Y. Monsada Director, Oil Industry Management Bureau Department of Energy ACFA/RP DOE : Vehicle Fuel Quality Workshop Petron Mega Plaza, Makati City, Metro Manila August 22, 2006
Fuel Quality Development in the Philippines OUTLINE • DOE • Fuel Quality • Conventional Fuels • Alternative Fuels • Initiatives • Issues and Concerns
Philippine DOE Mission Statement: We at the Department of Energy, in partnership w/ our stakeholders, shall improve the quality of life of the Filipino, by formulating and implementing policies and programs to ensure sustainable, stable, secure, sufficient, accessible and reasonably-priced energy. Oil Deregulation Law `to ensure a truly competitive market under a regime of fair prices, adequate and continuous supply of environmentally-clean and high quality petroleum products`
DOE Role • OIMB Mandate • Monitoring(RA 8479) • Fuel quality/quantity, refining/marketing process, • inventory, price • Additives Registration(RA 8479 / RA 8749) • Fuel Quality Standard Setting(RA 8749) • Petroleum Facilities Standard Setting(MOA with BPS) • Regulate as necessary(RA7638)
DOE Role – Fuel Quality Standards Setting Standard Development/Review Technical Committee (Fuels) • BPS TC 12 – Pre Clean Air Act “Technical Committee on Petroleum Products & Lubricantss” • DOE-TCPPA by virtue of the Philippine Clean Air Act “Technical Committee on Petroleum Products & Additives (TCPPA)” Chairs : DOE and DENR Members : Government : DOE, DENR, BPS-DTI, ITDI-DOST Fuel Sector : Petron, Caltex, Shell, IPPCA Engine Suppliers/Manufacturers : CAMPI, MMDA, MDPPA Consumer Sector / NGO : FilCar Foundation, AWMA Academe : UP-NCTS, AIPSI
DOE Role – Fuels and Vehicle Emissions VEHICLE FUEL EMISSION DOE DOTC / LTO / MMDA/DTI DENR
Unleaded Gasoline • Aromatics 45% max Jan. 1, 2000 • Benzene 4% max Jan. 1, 2000 • AKI 87.5 min Jan. 1, 2001 • RVP 9 psi max Jan. 1, 2001 • Aromatics 35% max Jan. 1, 2003 • Benzene 2% max Jan. 1, 2003 Automotive Diesel • Sulfur 0.2% max Jan. 1, 2001 • Cetane No./Index 48 min Jan. 1, 2001 Sulfur 0.05% max Jan. 1, 2004 Industrial Diesel Sulfur 0.3% max Jan. 1, 2001 CAA Requirements – Fuel Specs
Fuel Quality Standards Development Conventional Fuels • CAA Accomplishment • PNS 1131:2000 for Unleaded Gasoline (ULG) for 2000 specs • PNS 20:2000 for Diesel Oils for 2001 specs • PNS 1131:2001 (Multigrade ULG) • PNS 1131:2002/DOE 001:2002 for ULG for 2003 specs • PNS/DOE QS 004:2003 for Diesel Oils for 2004 specs • Post-CAA • PNS/DOE QS 001:2005 for Unleaded Motor Gasoline Specs 2. PNS/DOE QS 006:2005 for Fuel Oil (Bunker) Specs
Alternative Fuels/ Fuel Blends CNG/Natural Gas Bio-fuels: CocoMethyl Ester Fuel Ethanol Auto Gas/LPG Wind SolarElectric HydrogenFuel Cells Water-based Fuel BlendsHybrids Dual
Fuel Quality Standards Development Alternative Fuels • COMPLETED • PNS 2020:2003 – 100% Coco-methyl ester (B100) • PNS/DOE QS 003:2003 – 2-T Lubricating Oils, considers agricultural feedstock such as CME • PNS/DOE QS 005:2005 – Auto-LPG • PNS/DOE QS 007:2005 – Anhydrous Bioethanol/ Fuel Bioethanol • ON-GOING • DPNS/DOE QS 008:2006 – E-Gasoline (E10) • DPNS/DOE QS 009:2006 – B1 (1% CME-diesel blend) • DPNS/DOE QS 010:2006 – Jatropha
Multi-lateral bodies: ADB, WB, USAID,etc. Governmental Functionalities: DOE, DTI, BPS, DENR, EMB, DOF, BIR, BOC, TC, DOST, etc. Others: Industry – Oil/Car NGO’s, Academe Cleaner Fuels Initiatives FUEL QUALITY & EMISSIONS IMPROVEMENT • Review/Formulate Standards • Conventional Fuels– Gasoline/Diesel • Alternative Fuels and Blends • Coco-Methyl Ester, CNG, LPG • Institutionalize Work Groups • Standards Division • Alternative Fuels (Transport) Division • Petroleum Testing Laboratory Monitor Quality, Quantity, Price Review/Propose Tax/Incentives/MBI Register Additives IEC: Road Transport Patrol, AUV Eff Conduct/Cooperate Studies/Pilot Run Gas Station Training & Loan Fund
Fuel Quality Improvement Program GOVERNMENT THRUST • Continuous improvement of fuel quality standards • Enhanced enforcement of standards/monitoring of compliance • Harmonization of fuel standards – ASEAN AF • VEHICLE INDUSTRY PROPOSAL • Euro 2 – 2005 • Euro 4 – 2010 - ? • Promotion of alternative fuels
Plans – Quality Regulation Standards review/formulation Gasoline • Sulfur content • Phase-out of AVSR and other deposits forming additives • Phase in of deposit control additives Diesel • Sulfur content • Distillation Enhanced Standards Enforcement/ Compliance Monitoring • Acquisition of Portable (on-site) testing equipt • Partnership with private sector on monitoring and enforcement • Enhancement of adjudication capability
Harmonization of Standards Fuel Quality • Conventional • Alternative fuels Facilities • Gasoline stations • LPG vehicles, parts/ conversion kits • Terminals Codes of Practice • LPG Vehicle Conversion • Retail Operation • Bulk Storage, Handling & Distribution
Alternative Fuels – Biofuels TYPES: • Biodiesel • CME • 1% CME-diesel blend • Other biomass sources • Bioethanol • Anhydrous Bioethanol (pure ethanol / denatured ethanol) • E-Gasoline (10% bioethanol-gasoline blend) INITIATIVES: • Executive Issuances • Private Sector Initiatives – Voluntary Introduction • Legislation
Alternative Fuels – Biofuels Private Sectors Intiatives • Biodiesel: CME • Manufactures • - Chemrez and Senbel • Dealers/retailers • Flying V • Seaoil • Eastern • E-Gasoline: • Seaoil - 106 (Nationwide) • Flying V - 4 (Luzon) • Shell - 4 (M. M) Pre-blended 1% CME (CB1) outlets • Flying V • Unioil • FilOil • USA 88
Alternative Fuels – Others OTHERS: • Natural Gas – vice diesel • Buses • LPG – vice gasoline • Taxis INITIATIVES: • Executive Issuances • Private Sector Initiatives – Voluntary Introduction • Legislation
Fuel Quality Improvement Issues/Constraints PRICE • Higher quality means higher price • Present higher price levels in the international market • VAT • Price of biofuels at par with conventional fuels? SUPPLY AVAILABILITY • Insufficient capacity of local refineries to meet product specs (>50% dependence on finished product importation) • Tight international refinery capacity for good quality products INVESTMENT REQUIREMENT AND CLIMATE • Local refineries need upgrading/capacity expansion • Regional/global decision of stakeholders • Low refining margins • Not so competitive local business climate
Fuel Quality Improvement Issues/Constraints COMPATIBILITY OF FUEL WITH VEHICLE • Present vehicle fleet vs. age/condition • Availability of compatible vehicles FUEL QUALITY VS. EMISSION STANDARDS • Clear relationship between fuel quality and emissions standards MONITORING • Target vs. actual improvements in air quality • Improvements in water/health… quality • Side effects of measures implemented (health/ economy/air quality/other pollutants
Fuel Quality – Just One of the Factors Contributing to Pollution EMISSION FUEL QUALITY ENGINE DESIGN VEHICLE USE ENGINE MAINTENANCE TRAFFIC MANAGEMENT