To me, there was something particularly significant this year both in advancing the green agenda and the Philippine economy, and that had to do with the launch last Friday of the advocacy for biofuels. At the People Power Monument, US Ambassador Kristie A. Kenney cited the country’s efforts in advancing cleaner air. The advocacy for biofuels is crucial in this regard, and one in which everyone can take part.
By May 6, the Biofuels Act will kick in with the nationwide biodiesel mandate, which at 1% coco methyl ester (CME) blend into conventional diesel fuel, would result in billions of pesos in savings, from displaced fossil fuel imports and motorists’ fuel expense.
From various briefing materials, I’ve come to learn that biodiesel is a renewable and biodegradable fuel extracted from plant oils. Rudolf Diesel, the German mechanical engineer who invented the diesel engine, is known to have explored the possibility of replacing petroleum with vegetable oils as engine fuel. Years before he died in 1913, at age 55, he had already tinkered with peanut oil as a possible source. Through the years, various other vegetable oils have been studied and tested for biodiesel. These include palm, soy, rapeseed/canola, jatropha, and canola. But the best results have been derived from coco methyl ester (CME), a by-product of a process called transesterification of coconut oil.
Lest anyone raise fears that the coco-biodiesel of today would flounder in the same way the cocodiesel of the ’80s did, let me just point out the big difference. Crude coconut oil was the base ingredient used in the cocodiesel of the ’80s, while the coco-biodiesel of today is based on CME, which should have no glycerine that had caused the filter clogging and injector coking in engines that was the pitfall of the cocodiesel of the ’80s.
Today, we also have the Biofuels Act to safeguard the public against unscrupulous manufacturing and distribution of substandard biodiesel. Under the law, oil companies are required to purchase only from CME manufacturers that have passed the Philippine National Standard (PNS) for biodiesel. Our PNS is patterned after European and US standards and follows the fuel specifications set by the World Wide Fuel Charter (WWFC), an organization of engine and automobile manufacturers that seeks to harmonize fuel quality standards worldwide.
Under the Biofuels Act, the Department of Energy (DOE) is mandated to confiscate substandard biofuels, stop and suspend the operation of businesses that refuse to comply with the law, and impose appropriate administrative fines and penalties for any violation. The law itself sets penalties at one year to five years’ imprisonment and fines ranging from P1 million to P5 million. I understand that under the rules being drafted by the DOE for the law, local government units (LGUs) nationwide would be tapped to help ensure compliance with the law.
Once the nationwide biodiesel mandate sets in, I think the LGUs’ vigilance would be critical in ensuring that all consumers and motorists are protected, and this has to reckon the manufacturing process and blending of the CME into the conventional diesel fuel. Good thing that the DOE is taking this very seriously by stressing quality assurance. I understand that all biofuel producers would be required to conform to world-class standards in their production, handling, distribution and storage facilities.
No less than President Gloria Macapagal-Arroyo has emphasized the need to be diligent on quality assurance. Back in May last year, when she inaugurated the country’s and Asia’s first-ever continuous process CME plant owned and operated by Chemrez Technologies Inc., President Arroyo noted the export potential of coco-biodiesel. At that time, Chemrez had already pioneered the country’s entry as a player in the global biodiesel market, with its exports to Germany and Japan. She added that the Philippines’ coco-biodiesel had also earned accolades from the Americans, Australians and the Chinese. But to ensure the country’s export prospects, President Arroyo stressed that international quality standards must be met all the time.
I find it exciting that coco-biodiesel could finally lead to the resurgence of our coconut industry. This industry remains to this day a Philippine niche in the world market. However, following the anti-tropical oil lobby of the ’70s that alienated coconut oil from its mass market, we have seen our status decline in recent years. But, through the higher-value coco-biodiesel export, we can look forward to P4 billion in new money for the coconut and oleochemical industry.
But the overriding benefit is really toward cleaner air. Coco-biodiesel has been proven and tested as the only biodiesel in the world that lowers nitrogen oxides (NOx) that contribute to the greenhouse gases causing climate change. It also reduces carbon dioxide emissions at the rate of 3 kilos for every liter of biodiesel used. Coco-biodiesel, if PNS compliant, is proven and tested to lower tailpipe emissions of diesel engines by 30 to 60 percent.