By: Rosemarie S. Gumera Manager III, Sugar Regulatory Administration (SRA) SRA Alternate Representative, National Biofuel Board Alternate Representative of the Dept. of Agriculture, National Renewable Energy Board
Brief Background of the Philippine Sugarcane Industry
State of the Philippine Sugarcane Industry Sugarcane Plantation 423,000 has. 80% of farms are 5 has. & less 65,000 farmers & increasing due to land reform 59 TC/Ha 1.96 LKg/TC Current cost of production- $1,628 - $2,326/ha Processing Facilities 27 sugar mills 60% capacity utilization 14 sugar refineries 73% capacity utilization 8 bioethanol distilleries 222 million liters capacity 57% of mandated market 5 Power Generating Plants Installed Capacity of 84 MW Around $2.02 Billion contribution to the national economy in CY 2013-2014 due to sale of sugar, molasses & ethanol; With More than 700,000 workers and 5M dependents Contribution to trade balance & foreign reserves = $ 111.76 million
A Strategically Diversified Sugarcane Industry SUGAR BIOETHANOL POWER SPECIALTY SUGARS BIO-PLASTICS BIO-WATER
Improving Productivity Through the Block Farming Business Model Support Services thru Convergence DAR Organizational devpt Land tenure improvement DA Infrastructure devpt Livelihood SRA Technical Assistance Technology transfer Productivity improvement DTI Marketing Investments DOLE/State Universities Skills devpt farmers & workers Agripreneurship, HRD DOE Ethanol & Power Mill District Devpt Councils Conduit of Initiatives & Coordination Block Farm (consolidation of small landholders) Agribusiness Unit in Sugarcane Mill Districts Service Providers Farm Management & Technical Consultancy Equipment Services Financial Services Enterprise Development Marketing Investment Crop Loans Planters Association Sugar Mills Ethanol Distilleries Industrial Users NGOs GFIs / Banks
Human Resource Development & Socio-economic Programs of the Sugarcane Industry 1. Skills development dependents of small farmers and workers will be trained on skills required in the implementation of industry programs like farm managers, mechanics, farm machinery operators, bookkeepers, etc. 2. Scholarship program partner with gov t state universities in providing scholarships to dependents of small farmers and workers on degree / technical courses needed by the industry like electrical / mechanical engineers, agriculturists, sugar technicians / technologists, accountants, chemists, etc. 3. Hospitalization, education, livelihood, death benefits & cash bonuses for sugarcane workers & dependents derived from the social amelioration program of the sugar industry (over & above statutory labor benefits)
The Bioethanol Fuel Program
San Carlos Bioenergy - Southeast Asia s first integrated sugarcane to alcohol distillery and power generation plant
San Carlos Bioenergy - NOT A STAND-ALONE DISTILLERY SUGARCANE MILL STEAM SYRUP HOUSE SYRUP REVENUE BAGASSE BOILER POWER HOUSE POWER POWER REVENUE MOLASSES SYRUP FERMEN- TATION STEAM DISTIL- LATION ETHANOL REVENUE
ZERO DISCHARGE WASTEWATER TREATMENT SYRUP HOUSE FERMEN- TATION BOILER BIOGAS RECYCLED WATER WASTEWATER TREATMENT COMPOST IRRIGATION WATER
Ethanol Companies / Year Operational Rated Capacity (Million Liters) Feedstock Estimated Feedstock Requirement (MT) 1. Leyte Agri Corp. - 2008 9.0 Molasses 37,000 2. San Carlos Bioenergy Inc. - 2009 40.0 Molasses Sugarcane 122,000 143,000 3. Roxol Bioenergy Corp. 2011 4. Green Future Innovations Inc. - 2012 5. Balayan Distillery Inc.- 2014 6. Universal Robina Corp. 2014 30.0 Molasses 122,000 54.0 Sugarcane 771,000 30.0 Molasses 122,000 30.0 Molasses 122,000 7. Far East Alcohol - 2015 15.0 Molasses 61,000 8. Kooll Company Inc. 14.12 Molasses 49,000 2015 TOTAL 222.12 Molasses 635,000 Sugarcane 914,000 Sugar 86,830 equivalent 13,585 existing area
Feedstocks Estimated Quantity (MT) Operational Upcoming TOTAL Molasses @ 245 L/MT 525,000 391,000 916,000 Sugarcane @ 70 L/MT 914,000 1,786,000 2,700,000 Sugar Equivalent to Sugarcane @ 1.9 LKg/TC 86,830 169,670 256,500 45,000 ha. existing area CROP YEAR 2013-14 Production Molasses, MT 1,009,139 Sugar, MT 2,461,808 Sugarcane Area 423,000 hectares
The Bioethanol Mandate was passed in Dec 2006 and became effective in Feb 2007 Let us examine what went wrong during the early years of implementation of the biofuels law in the Philippines
Historical Bioethanol Supply Demand, 2009-2014 Year Local Supply (million Liters) Imported (Million Liters) Consumption (Million Liters) 2008 0.973 12.56 13.53 (voluntary blending) 2009 23.284 64.24 87.52 (5% blend) 2010 10.174 140.44 178.25 (5% blend) 2011 4.138 215.00 2012 35.086 248.40 197.40 (5% & 10% blend w/ exemptions) 306.50 (10% blend w/ exemptions) 2013 71.538 318.79 436.503 (10% blend) 2014 114.858 339.06 441.514 (10% blend)
Distillery 1. Leyte Agri Corp. 2. San Carlos Bioenergy Inc. 3. Roxol Bioenergy Corp. 4. Green Future Innovations Inc. 5. Balayan Distillery Inc. 6. Universal Robina Corp. 7. Kool Company Philippines 8. Far East Distillery Historical Bioethanol Production in Million Liters, 2009-2014 Rated Capacity 2008 2009 2010 2011 2012 2013 2014 9.0 0.973 3.221-0.300 0.928 2.515 2.714 40.0-20.063 10.174 3.828 21.733 32.170 28.999 30.0 - - - - 8.563 19.960 35.614 54.0 - - - - 3.864 16.893 22.278 30.0 - - - - - - 22.652 30.0 - - - - - - 2.023 14.12 - - - - - - 0.577 15.0 - - - - - - 0.000
The Road to a Cleaner Fuel is Rough World sugar deficit in 2010 resulted to skyrocketing of sugar Difficulty of prices investors in securing Petroleum feedstock companies areas due to benchmarked fragmentation price of local of farms ethanol with because of imported ones Storage tanks of local land reform ethanol producers overflowed, oil companies are not buying local ethanol
2015 Ethanol Fuel Distilleries with On-Going Construction Distillery Feedstock Production Capacity (Million Liters) Projected Year of Operation 1. Cavite Biofuels Sugarcane 39.0 2016 2. Absolut Distillery Molasses 30.0 2016 3. Asian Alcohol Molasses 30.0 2016 4. Emperador Distillery Sugarcane Molasses TOTAL 129.0 30.0 2016
What Stimulated Production & Investments from 2011 onwards Conversion Firm gov t of potable policy and distilleries regulatory into framework bioethanol supportive of fuel the program Predictable Investment Environment through a pricing mechanism
Reduction in GHG Emission - Yes measured thru LCA with IEEJ Sustainable rural development through more jobs and increased income of workers Yes, through head count of additional employment & proliferation of vendors & small-scale establishments around the factory / community Reduce dependence on imported fossil oil Yes thru the volume displaced by ethanol
FAO BEFS RA PHL became confident on the use of sugarcane as bioethanol feedstock thru intensification FAO BEFS Roadmap GBEP indicators Provide guidance throughout the implementation process Eliminates uncertainties, builds up confidence among investors & strengthens country position on bioethanol projects
Relaxation of the mandate???