By: Rosemarie S. GumeraFar East Alcohol - 2015 15.0 Molasses 61,000 8. Kooll Company Inc. – 2015...
Transcript of By: Rosemarie S. GumeraFar East Alcohol - 2015 15.0 Molasses 61,000 8. Kooll Company Inc. – 2015...
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
SUGAR
BIOETHANOL
POWER
SPECIALTY SUGARS
BIO-PLASTICS
BIO-WATER
A Strategically Diversified Sugarcane Industry
Improving Productivity Through the “Block Farming Business Model”
Mill District Devpt
Councils
Conduit of Initiatives &
Coordination
Block Farm (consolidation of small
landholders)
Agribusiness Unit in
Sugarcane Mill Districts
Service Providers
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
Generation devpt
Enterprise
Development
Marketing
Investment
Crop Loans Planters
Association
Sugar Mills
Ethanol
Distilleries
Industrial
Users
NGOs
GFIs / Banks
Farm Manage- ment &
Technical Consul-tancy
Equip-ment
Services
Financial Services
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
MOLASSES
SYRUP
MILL
FERMEN-TATION
DISTIL-LATION
SYRUP HOUSE
BOILER
STEAM
POWER HOUSE POWER
ETHANOL
REVENUE
POWER
REVENUE
SYRUP
REVENUE
BAGASSE
STEAM
BOILER
SYRUP HOUSE
WASTEWATER
TREATMENT
COMPOST
RECYCLED WATER
ZERO DISCHARGE
WASTEWATER TREATMENT
BIOGAS
FERMEN-TATION
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
30.0 Molasses 122,000
4. Green Future Innovations Inc. - 2012
54.0 Sugarcane 771,000
5. Balayan Distillery Inc.- 2014
30.0 Molasses 122,000
6. Universal Robina Corp. – 2014
30.0 Molasses 122,000
7. Far East Alcohol - 2015 15.0 Molasses 61,000
8. Kooll Company Inc. – 2015
14.12 Molasses 49,000
TOTAL 222.12 Molasses Sugarcane Sugar equivalent
635,000 914,000 86,830 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 4.138 215.00 197.40 (5% & 10%
blend w/ exemptions)
2012 35.086 248.40 306.50 (10% blend w/
exemptions)
2013 71.538 318.79 436.503 (10% blend)
2014 114.858 339.06 441.514 (10% blend)
Distillery
Rated
Capa-
city
2008 2009 2010 2011 2012 2013 2014
1. Leyte Agri
Corp. 9.0 0.973 3.221 - 0.300 0.928 2.515 2.714
2. San Carlos
Bioenergy Inc. 40.0 - 20.063 10.174 3.828 21.733 32.170 28.999
3. Roxol
Bioenergy Corp. 30.0 - - - - 8.563 19.960 35.614
4. Green Future
Innovations Inc. 54.0 - - - - 3.864 16.893 22.278
5. Balayan
Distillery Inc. 30.0 - - - - - - 22.652
6. Universal
Robina Corp. 30.0 - - - - - - 2.023
7. Kool
Company
Philippines
14.12 - - - - - - 0.577
8. Far East
Distillery 15.0 - - - - - - 0.000
Historical Bioethanol Production in Million Liters, 2009-2014
The Road to a Cleaner Fuel is Rough…
World sugar deficit in
2010 resulted to
skyrocketing of sugar
prices
Petroleum
companies
benchmarked
price of local
ethanol with
imported ones
Storage tanks of local
ethanol producers
overflowed, oil
companies are not
buying local ethanol
Difficulty of
investors in
securing
feedstock
areas due to
fragmentation
of farms
because of
land reform
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 30.0 2016
TOTAL 129.0
What Stimulated Production & Investments from 2011 onwards…
Firm gov’t
policy and
regulatory
framework
supportive of
the program
Predictable
Investment
Environment through
a pricing mechanism
Conversion
of potable
distilleries
into
bioethanol
fuel
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
• Provide guidance
throughout the
implementation process
GBEP indicators
• Eliminates uncertainties,
builds up confidence
among investors &
strengthens country
position on bioethanol
projects
Relaxation of the mandate???