Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City,...

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Department of Energy Empowering the Filipinos Status Updates of the Philippine Bioenergy Industry Ruby B. De Guzman Chief Science Research Specialist Biomass Energy Management Division Renewable Energy Management Bureau Department of Energy Presented to the GBEP Sustainability Indicators Workshop Philippine International Convention Center, Pasay City 24 June 2019

Transcript of Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City,...

Page 1: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Status Updates of the Philippine Bioenergy

Industry

Ruby B. De GuzmanChief Science Research Specialist

Biomass Energy Management DivisionRenewable Energy Management Bureau

Department of Energy

Presented to the GBEP Sustainability Indicators WorkshopPhilippine International Convention Center, Pasay City

24 June 2019

Page 2: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Outline of Presentation

• Challenges and Barriers

• Enactment of Landmark Laws

• Policy Directions and Mechanisms– Biofuels

– Biomass

• Where we are now

• Policies and Development Status

• Research and Development Activities -Biofuels

• Biomass Energy Resource Assessment

• The Way Forward

Page 3: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Renewable Energy

omass / ofuels

eothermal

olar Power

ydropower

cean

ind Power

Page 4: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

High upfront and technology costs

Non-competitiveness

Non-viable markets

Inaccessible Financial Packages

Social Acceptability

To address these barriers, the Government promulgated landmark Laws to

accelerate development of the country’s renewable energy resources.

Challenges / Barriers to RE Development

Page 5: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Landmark Laws

The primary bioenergy policy of the country is

governed by two landmark laws.

REPUBLIC

ACT NO.

9367

REPUBLIC

ACT NO.

9513

Page 6: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

An Act to direct the use of biofuels, establishing for this purpose

the Biofuel Program, Appropriating Funds therefore, and for

other purposes

Signed into law on January 12, 2007

Republic Act 9367, also known as the Biofuels Act of 2006, was

implemented to increase the contribution of biofuels in the country’s

energy mix thereby reducing its dependence on imported fossil-based

fuels, enhance the quality of the environment, and create opportunities

for countryside socio-economic development.

R.A. 9367: Biofuels Act of 2006

Page 7: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

R. A. No. 9367: The Biofuels Act of 2006

Provides fiscal incentives and

mandates the use of biofuel-

blended gasoline and diesel fuels

BIODIESEL2% biodiesel blend on Feb. 6, 2009

Supply:

11 Accredited Producers with annual total capacity of 574.9 million liters

4 registered projects undergoing construction with a total annual combined capacity of 292.65 million liters

Feedstock used:

Coconut oil (current)

Jatropha (completed pilot study)

Waste cooking oil, microalgae , rubber seed oil (under study)

BIOETHANOL10% bioethanol blend to all gasoline on Feb. 6, 2012

Supply:

12 accredited Producers with annual total capacity of about 380.5 million liters

3 registered projects undergoing construction with a total annual combined capacity of 113 million liters

Feedstock used:

Sugarcane, molasses (current)

Sweet sorghum, cassava, macroalgae(completed pilot study)

Nipa sap, cellulosic materials (under study)

Page 8: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Policies and Issuances

Joint Administrative Order No. 2008-1, Series of

2008 providing the “Guidelines Governing the Biofuel

Feedstock Production, and Biofuels and Biofuel Blends

Production, Distribution and Sale under Republic Act

No. 9367”

Department Circular No. DC2009-02-0002

“Mandating a Minimum of 2% Blend of Biodiesel in all

Diesel and 5% Bioethanol in Annual Total Volume of

Gasoline”

Department Circular No. DC2011-02-0001

“Mandatory Use of Biofuel Blend”

- a minimum of 10% blend of biofuel by volume into

all gasoline fuel distributed and sold by each and

every oil company

Page 9: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Department Circular No. DC2011-12-0013 “Utilization of Locally-

Produced Bioethanol in the Production of E-Gasoline Consistent with

the Biofuels Act of 2006”

- mandates the use of locally-sourced biofuels and exhaustion of its

supply before importing biofuels that will be blended with liquid

fuels for motors and engines sold in the Philippines

- Creation of the National Biofuel Board - Bioethanol Committee

Conduct monthly allocation and compliance meeting

among bioethanol producers and oil companies

Publish a monthly price index for bioethanol based on

data from SRA and DA

Department Circular No. DC2015-06-0007 “Revised Guidelines on

the Utilization of Locally-Produced Bioethanol in the Production of E-

Gasoline”

- amendments on DC2011-12-0013 which include elimination of the

notice of allowable bioethanol importation (NABI), the

consideration of major equipment breakdown, among others.

Policies and Issuances

Page 10: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

SHORT-TERM(2018)

MEDIUM-TERM(2019-2022)

LONG-TERM(2023-2040)

BIOFUELS ROADMAP (2018-2040)

PU

RSU

E TH

E D

EVEL

OP

MEN

T O

F B

IOFU

ELS

IN C

OM

PLI

AN

CE

WIT

H T

HE

BIO

FUEL

S A

CT

OF

20

06

(R

.A.

93

67

)

OVERALL

OBJECTIVE

BY 2040

BIODIESEL

BIOETHANOL

B2

Maintain 2%

biodiesel

blending on

diesel

E10

Review the bioethanol mandate

B2 / B5

• Maintain 2% biodiesel

blending on diesel

until 2019

• 5% blend on 2020

E10 / E20

B5 / B10

Maintain 5%

biodiesel blending

on diesel and

possible 10% blends

depends on

availability of

feedstock

• Revisit blending requirement and available feedstock

• Continuous conduct of research and development on

feedstock sources

Page 11: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

PERFORMANCE ASSESSMENT OF THE

NATIONAL BIOFUELS PROGRAM

Page 12: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

BIOETHANOL

Supply

• 12 accredited bioethanol producers with

total production capacity of

380.50 MLPY as of end 2018;

• Additional capacity of 113 ML will be

on-stream beginning 2020.

Demand

• Total sales of local bioethanol reached

303.73 ML in 2018 or an increase of

29% compared to 2017 level;

• About 217 ML or 46% of volume

requirement for E10 mandate as of end

September 2018;

• Imports filled in the deficit and sourced

from the US, Australia, South Korea,

among others.

Where are we now?

BIODIESEL

Supply

• 11 accredited biodiesel producers with

total production capacity of 574.9

MLPY as of end 2018;

• Additional capacity of 292.65 ML will

be on-stream beginning 2020.

Demand

• Total sales of local biodiesel reached

205.24 ML in 2018 as compared to

203.61 ML in 2017;

• Equivalent to 10.262 billion liters of 2%

biodiesel-blended diesel (B2) sold in

2018.

Page 13: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Biodiesel Producers

BIODIESEL PRODUCERS PROJECT LOCATIONREGISTERED CAPACITY

(million liter/year)Accredited

1 Phil. Biochem Products, Inc. Brgy. Buli, Muntinlupa City 402 Chemrez Tecnologies, Inc. Bagumbayan, Quezon City 903 Mt. Holly Coco Industrial, Inc. Lucena City, Quezon 604 Pure Essence International, Inc. Bagong Ilog, Pasig City 725 Golden Asian Oil International, Inc. Bagong Ilog, Pasig City 606 Bioenergy 8 Corporation Sasa, Davao City 307 Tantuco Enterprises, Inc. Tayabas, Quezon 908 JNJ Oleochemicals, Inc. Lucena City, Quezon 63.39 Freyvonne Milling Services Toril, Davao City 15.6

10 Phoenix Petroleum Philippines, Inc. Villanueva, Misamis Or. 2411 Econergy Corporation General Santos City 30

TOTAL 574.9

Undergoing Construction1 Bio Renewable Energy Ventures, Inc. Jasaan, Misamis Oriental 1502 Archemicals Corp. Tagoloan, Misamis Oriental 153 Greentech Biodiesel Inc Gumaca, Quezon 1004 Voice Development Corporation Tayabas, Quezon 27.65

TOTAL 292.65

Page 14: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Bioethanol ProducersBIOETHANOL PRODUCERS PROJECT LOCATION

REGISTERED CAPACITY (million liter/year)

Accredited1 San Carlos Bioenergy, Inc. San Carlos City, Negros Occ. 402 Leyte Agri Corporation Ormoc City, Leyte 93 Roxol Bioenergy Corporation La Carlota, Negros Occ. 304 Green Future Innovations, Inc. San Mariano, Isabela 545 Balayan Distillery, Inc. Calaca, Batangas 306 Far East Alcohol Corp. Apalit, Pampanga 157 Kooll Company, Incorporated Talisay, Negros Occidental 308 Universal Robina Corporation Bais City, Negros Oriental 309 Absolut Distillers, Inc. Lian, Batangas 30

10 Progreen Agricorp, Inc. Nasugbu, Batangas 3011 Victorias Milling Company, Inc. Victorias City, Negros Occ. 16.512 Progreen Agricorp, Inc. -Balayan Balayan, Batangas 66

TOTAL 380.5Undergoing Construction*/Financial Closing**

1 Cavite Biofuels Producers, Inc.* Magallanes, Cavite 38

2 Canlaon Alcogreen Agro Ind’l Corp.** Bago City, Negros Occ. 45

3 Asian Alcohol Corporation* Manapla, Negros Occidental 30TOTAL 113

1Demonstration FacilityNSEBIO CO., LTD. Philippine Branch

Nasugbu, Batangas 2 wet tons bagasse/day

Page 15: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Actual Annual Biofuel Report

UndergoingConstruction Accredited

2017(in million liters)

2018*(in million liters)

# of Projects

Annual Capacity

# of Projects

Annual Capacity

Production Sales Production Sales

Biodiesel 4 292.65 11 574.9 219.61 203.61 219.98 205.24

Bioethanol 3 113 12 380.5 234.65 234.90 295.54 303.73

Note: *as of December 2018

Page 16: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Bioethanol Production Plants

9ML Leyte Agri Corporation Bioethanol Plant

Ormoc City, Leyte

66ML Progreen Agricorp, Inc. Bioethanol Plant

Balayan, Batangas

30ML Universal Robina

Corporation

Bioethanol Plant

Bais City, Negros

Occidental

54ML Green Future Innovations, Inc. Bioethanol Plant

San Mariano, Isabela

Page 17: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Biodiesel Production Plants

63.3ML JNJ Oleochemicals, Inc. Biodiesel Plant

Lucena City, Quezon

90ML Chemrez Technologies, Inc. Biodiesel Plant

Bagumbayan, Quezon City

40ML Phil. Biochem Products, Inc. Biodiesel Plant

Buli, Muntinlupa City

15ML ARChemicals Corp. Biodiesel Plant

Tagoloan, Misamis Oriental

Page 18: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Monitoring of Biofuels Production Plants

Page 19: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Demand Outlook, 2018-2040

BIODIESEL

BIOETHANOL

Year

Gasoline

Demand

(in million

liters)

Targeted Blend

Bioethanol

Requirement

(in million

liters)

2019 7,999.50 10 799.85

2020 8,476.11 10 847.61

2025 11,266.27 10 1,126.63

2030 15,518.58 10 1,551.86

2035 20,185.21 10 2,018.52

2040 26,163.83 10 2,616.38

Year

Diesel Demand

(in million

liters)

Targeted Blend

Biodiesel

Requirement

(in million

liters)

2019 10,730.13 2 214.60

2020 11,501.42 5 575.07

2025 13,833.24 5 691.66

2030 16,575.44 5 830.04

2035 19,502.28 5 975.09

2040 22,804.11 5 1,140.21

Page 20: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Supply Outlook, 2017-2020***

Year Production Capacity(in million liters per year)

Biodiesel Bioethanol

2017 574.9 282.12

2018 574.9 380.5

2019 839.9 380.5

2020 867.55 448.5

***Based on projects registered and/or pending applications under JAO 2008-1

Page 21: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Bioethanol Production Plants (On-going Construction)

Cavite Biofuel Producers, Inc. – 38 million liters per year (Magallanes, Cavite)

Asian Alcohol Corporation – 30 million liters per year (Pulupandan, Negros Occidental)

Page 22: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Biodiesel Production Plants (On-going Construction)

Archemicals Corp. – 15 million liters per year (Tagoloan, Misamis Oriental)

Greentech Biodiesel, Inc. – 100 million liters per year (Gumaca, Quezon)

Page 23: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Alternative Feedstock for Biofuels

Source: UPLB

Types of Biofuels

Bioethanol Production

Biodiesel Production

1st Generation Sugarcane, Cassava, Sweet Sorghum, Molasses

Coconut

2nd Generation Cellulosic Materials, Grass, Agricultural Waste Materials, Forest Waste and Residues

Used Cooking OilJatrophaRubber Seed Oil

3rd Generation Macroalgae Microalgae

Page 24: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Page 25: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Mariano Marcos State University (MMSU)

“Establishment of a Community-Based Bioethanol Industry and Continued

R&D on the Feasibility of Hydrous Bioethanol as Biofuel Blend using Nipa

Sap as Feedstock”

Highlights:

1. Fabricated four (4) distiller set-ups with three (3)

sets already operational.

2. The project already produced 3,000 L of

hydrous bioethanol.

Project Site:

Pamplona, Cagayan

Nipa Sap

Page 26: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

NSEBIO Co., Ltd. Philippine Branch

“Demonstration Test for Cellulosic Ethanol Production Technology in

the Philippines”Highlights:

Cellulosic

Project Site:

Nasugbu,

Batangas

1. Demonstration trial using bagasse in May

2017 and napier grass in October 2017.

2. Ethanol yield from fresh bagasse at

292 liter/ton.

3. Target average ethanol production at

289 liter/ ton-dry napier.

Page 27: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

University of the Philippines – Los Baños

“Life Cycle Assessment in terms of Carbon Debt and Payback

Analyses, Carbon Savings and Energetics Studies of Biodiesel

Production from Coconut Oil in the Philippines”

Project Highlights:

1. Determination of energy and carbon emissions associated with feedstock acquisition for the

production of crude coconut oil.

2. Consolidation of the overall theoretical design of a biodiesel processing plant through

consultations.

3. Data gathering of daily actual measured values (mass and energy flowrates and

compositions) from biodiesel processing plants in Davao City, General Santos City and

Quezon City.

4. Inventory and measurements of the inputs (raw materials, energy, water) and outputs

(atmospheric emissions, waterborne wastes, solid wastes, usable products, and other

environmental releases) of the defined scope of the LCA.

Coconut Oil

Page 28: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

DOST – Industrial Technology Development Institute

“Characterization/performance testing of the Biodiesel/diesel Blends

from Combined Feedstock of Various Vegetable and Used Cooking

Oils.”

Project Highlights:

1. Preparation of biodiesel from different feedstock (coconut oil, refined palm

oil, used cooking oil and rubber seed oil).

2. Determination of the % recovery of methyl ester from the different feedstock.

Determination of the oil content of rubber seeds.

3. Determination of the initial physicochemical analysis of the subject feedstock

(appearance, acid number/acid value).

Vegetable Oil / Used Cooking Oil / Rubber Seed Oil

Page 29: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

1. Actual on-road test has covered 13,431 kms of flat and elevated/high altitude

terrains.

2. Initial results show an increase of about 10% mileage compared to B2.

Toyota Innova Toyota Hilux

Blending (B5) Refueling (B5)Refueling (B2) Emission Testing

Actual On-Road Test For Higher Biodiesel Blend (B5)

Page 30: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

R. A. No. 9513: The Renewable Energy Act of 2008

Accelerate the development of the country’s renewableenergy resources by providing fiscal and non-fiscalincentives to private sector investors and equipmentmanufacturers / suppliers.

Page 31: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Policy Directions

Accelerate the exploration and development of renewable

energy resources

achieve energy self-reliance

to reduce the country’s dependence on fossil

fuels

minimize the country’s exposure to price

fluctuations

adoption of clean energy to mitigate climate change

promote socio-economic development in rural areas

Increase the utilization of renewable energy by providing

fiscal and non fiscal incentives

Page 32: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Incentives under the RE Act

RA 9513

Fiscal Incentives Non-Fiscal Incentives

Renewable Portfolio

Standards

FIT System

Net-Metering

Green Energy Option

Income Tax

Holiday and

Low Income

Tax Rate

Reduced

Government

Share

Duty-Free Importation of Equipment and VAT Zero-Rating

Tax Credit on

Domestic

Capital

Equipment

Exemption

from

Universal

Charge

Cash

Incentive for

Missionary

Electrification

Payment of

Transmission

Charges

Tax

Exemption

on Carbon

Credits

Page 33: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Milestones: RA 9513

2008 2009-2010 2011 2012-2013 2014-2018

Enacted the R.A. 9513:

Renewable Energy Act

of 2008

• Issued the Implementing Rules and

Regulations

• Administrative Frameworks for Awarding RE

Service Contracts, Accreditations

• Establishment of Renewable Energy

Management Bureau (REMB)

• Creation of DOE’s RE-Review and Evaluation

Committee

• Initial awards of RE Contracts under the RE

Law

• Convening of National Renewable Energy

Board (NREB)

• ERC Issued Feed-in-Tariff (FIT) Rules (August

2010)

• Published the

National

Renewable

Energy Program

(NREP) 2010-2030

• The ERC approved the FIT Rates (July 2012)

• DOE issued Guidelines for the Selection Process of RE

Projects under FIT System and Award of Certificate for FIT

Eligibility under Department Circular No. 2013-05-0009 (May

2013)

• Implementation of the Net-Metering Program (July 2013)

• ERC issued FIT Allowance (FIT-ALL) Payment and Collection

Guidelines (December 2013)

• ERC approved FIT-All Rates 0.0406 Php/kWh (2014-2015),

October 2014 and effective January 2015

• Amendment of DOE’s Installation Target

• April 2014, 50 MW to 500 MW for Solar

• April 2015, 200 MW to 400 MW for Wind

• ERC issued new FIT Rates for Solar (March 2015) and Wind

(October 2015)

• DC2017-12-0015 (RPS Rules for On-Grid Areas/22 Dec. 2017)

• DOE endorsed to ERC the FIT Installation Target

completion for Biomass and ROR Hydro until EO Dec. 2019

• DC2018-07-0019 (GEOP Rules/18 July 2018).

• DC2018-08-0024 (RPS Rules for Off-Grid/24 August 2018).

Page 34: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

FIT Mechanism

34

Feed-in-Tariff (FIT)

• Priority connection to the grid

• Priority purchase and transmission of and payment for by grid system operators

• Fixed tariff for 20 years

• To be applied for generation utilized in compliance with RPS

• DOE issued List of guidelines for the Selection Process of Renewable Energy Projects Under Feed-In Tariff System and the Award of Certificate for Feed-In Tariff Eligibility

Page 35: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Feed-In-Tariff (FIT) System

RESOURCE

INSTALLATION

TARGET

ERC

APPROVED FIT

RATES

WITH CERTIFICATE

OF ENDORSEMENT

TO ERC

INSTALLATION

TARGET

BALANCE

Capacity (MW) (PhP / kWh)No. of

Projects

Capacity

(MW)

Capacity

(MW)

Hydro 2505.90 5 34.60 206.90

5.8705*** 1 8.50 -

Wind200 8.53 3 249.90

6.10200* 7.40** 3 144.00

Solar50 9.68 6 108.90

-450* 8.69** 17 417.05

Biomass 2506.63 15 121.401

100.1166.5969*** 6 28.224

Ocean 10 Deferred - - -

TOTAL 1,410.00 54 1,102.68 323.28

* - Additional installation targets

** - FIT rates for the respective additional installation targets (W-ERCRes14,s2015; S-ERCRes6,s2015) *** - Degressed FIT rates (H&B-ERCRes1,2017) **** - Reckoning date is January 2015 (Deadline: December 2017)

As of 31 January 2019

Page 36: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Feed-in-Tariff (FIT) System

o The DOE extended the FIT System

for biomass and ROR Hydro until

end-2019

o ERC conducted public

consultations in the following

areas:

o Luzon: ERC Hearing Room

(11 January 2019)

o Visayas: ERC Hearing Room

(Banilad, Cebu City/17 January

2019)

o Mindanao: ERC Hearing

Room (Mintrade Bldg., Davao

City/18 January 2019)

Page 37: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Updates on RE Policy Mechanisms

Department Order No. DO2017-04-0005• Prescribing the new guidelines in the processing of applications

for renewable energy service/operating contract• Further enhances the transparency in processing and issuance

of service contracts and permits and shorten the time frame to25 days

Executive Order No. 30• Creating the Energy Investment Coordinating Council (EICC) in

order to streamline the regulatory procedures affecting energyprojects

• Declares energy projects as projects of national significance• DOE to chair the EICC and shall be composed of DENR, NEA,

NGCP, NPC, TransCo, DOF, DOJ, DOTr, HLURB, Palawan Councilfor Sustainable Development and other agencies deemednecessary by the council.

Checklist

Page 38: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Where We are Now: 2017 Energy Supply

Page 39: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Summary Biomass Projects under RE Law (as of December 2018)

# OF

PROJECTS

INSTALLED

CAPACITY

(MW)

POTENTIAL

CAPACITY

(MW)

TOTAL (MW)

Biomass Renewable

Energy Operating

Contract (BREOC)60 409.64 374.285 783.925

Certificate of

Registration for

Own- Use (COR)21 119.86 14.224 134.08

TOTAL 81 529.5 388.509 918.005

Page 40: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Registered Biomass Projects per Feedstock

# of

ProjectsBREOC

# of

Projects

COR for OWN-

USE

Bagasse 10 301.5 13 116.05

Rice Husk 10 98.1 1 2.25

Napier Grass - - - -

Biogas (Animal Waste /

Distillery Waste)3 17.1 2 1.56

Coconut Waste 1 0.7 - -

Wood Chips - - - -

Municipal Solid Waste 2 9.85 - -

Multi-Feedstock 2 9.46 - -

TOTAL 28 409.64 16 119.86

Refuse Derived Fuels (RDF) 2 650MT/day

INSTALLED CAPACITY (MW)

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Department of EnergyEmpowering the Filipinos

Registered Biomass Projects per Feedstock

# of

ProjectsBREOC

# of

Projects

COR for OWN-

USE

Bagasse 2 68 1 9.2

Rice Husk 6 35.5 2 4.3

Napier Grass 3 29.5 - -

Biogas (Animal Waste/

Distillery Waste)2 12.09 1 0.624

Coconut Waste 1 1.5 - -

Wood Chips 1 23.50 - -

Municipal Solid Waste 5 49.695 1 0.10

Multi-Feedstock 8 104.5 - -

Sugarcane Trash 2 50.0

TOTAL 30 374.285 5 14.224

POTENTIAL CAPACITY (MW)

Page 42: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

0.624 MW Biogas Power Plant (own-use)

FDR Integrated Resource Recovery Management, Inc. (Naga City, Cebu)

Biogas Power Projects (MSW)

1.5 MW Landfill Methane Recovery and Power Generation Facility

Pangea Green Energy Philippines, Inc. (Quezon City)

Page 43: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Biogas Power Projects (Animal Manure)

2MW Biogas Power Plant

Asian Carbon Neutral Power Corporation

(Tarlac City, Tarlac)

Biotech Farms, Inc.

12.39-MW Biogas Power Plant (Banga, South Cotabato)

560kW Biogas Power Plant (own-use)

Marcela Farms, Inc. (Cortes, Bohol)

Page 44: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Biomass Power Projects (Bagasse)

46MW Bagasse-Fired Cogeneration Power Plant

Universal Robina Corporation (Kabankalan City, Negros Occidental)

63 MW Bagasse-Fired Cogeneration Power Plant

Victorias Milling Company, Inc. (Victorias City, Neg. Occ.)

28.58 MW Bagasse-Fired Cogeneration Power Plant

Hawaiian-Philippine Company (Silay City, Neg. Occ.)

Page 45: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Biomass Power Projects( Rice Husk)

24MW Rice Husk-Fired Biomass Power Plant

San Jose City I Power Corporation (San Jose City, Nueva Ecija)

20MW Rice Husk-Fired Biomass Power Plant

Isabela Biomass Energy Corporation (Alicia, Isabela)

Page 46: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Biomass Power Projects (Rice Husk)

12MW Rice Husk-Fired Biomass Power Plant

Green Innovations for Tomorrow Corporation (Talavera, Nueva Ecija)

5MW Rice Husk-Fired Biomass Power Plant

Bicol Biomass Energy Corporation (Pili, Camarines Sur)

Page 47: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

On-going Construction (Napier Grass)

12MW Biomass Power Plant Project

Cleangreen Energy Corporation (Orani, Bataan)

12MW Biomass Power Plant Project

Grass Gold Renewable Energy Corporation (Llanera, Nueva Ecija)

Page 48: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

On-going Construction (Cane Trash)

25MW Biomass Power Plant Plant

North Negros Biopower (Manapla, Negros Occidental)

20MW Biomass Power Plant Plant

San Carlos Biopower, Inc. (San Carlos City, Negros Occidental)

Page 49: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Environmental Impact and Social Responsibility

YearCapacity Addition

(MW)

Emission Reduction (t-CO2/year)**

Cumulative Emission

Reduction (2009-2015)

2008 3.6 11600.45 81203.152009 29.33 94511.48 567068.882010 23 71876.27 359381.352011 29.1 91420.71 365682.842012 30.8 86045.66 258136.982013 1.476 4085 8169.722014 468.65 1,138,632.50 1138632.5Total 585.956 1,498,171.93 2,778,275.42

2,778,275.42 t- CO2

Reduction (2009-2015)

TotalCapacity Addition

(MW)

Construction Jobs

Full Time O&M Jobs

2008 3.6 90 112009 29.33 733 882010 23 558 642011 29.1 710 822012 30.8 672 652013 1.476 32 42014 468.65 7,251.00 4102015 342.4 5,332.00 316

Total 928.356 15,378 104016,418 Green Jobs Generated (2009-2015)

Source: IRENA Rule of Thumb

Page 50: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

Major Island

Group

POTENTIAL

POWER

GENERATION

CAPACITY (MW)

Estimated CO2

Emission

Reduced

(Million tCO2 )

Luzon 2093.78 11.00

Visayas 1512.76 3.71

Mindanao 843 2.54

TOTAL 4,449.54 17.25

Biomass Resource Assessment - USAID

Page 51: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

SHORT-TERM(2019-2020)

MEDIUM-TERM(2021-2022)

INC

REA

SE R

E IN

STA

LLED

CA

PAC

ITY

TO

AT

LEA

ST

20

,00

0 M

W

LONG-TERM(2023-2040)

• To determine Biomass/Biofuels projects to be declared as projects

of national significance

• Enhance EVOSS for Biomass/Biofuels projects

• Provide technical assistance to lower investment cost

• Promote and incentivize local technology producers

• Establish Biomass/Biofuels Information Exchange

CREATION OF CONDUCIVE

BUSINESS ENVIRONMENT

ACTIVITIES TO BE UNDERTAKEN• Provide technical guidance and assistance to biomass RE

developers and biofuels proponents on EPNS process and significance; and,

• Collaborate with biomass/biofuels associations (BREA, EPAP, TPBA) and other stakeholders to further promote bioenergy and biofuel investments and projects thru the conduct of the 2019 Bioenergy Summit under the GBEP.

OVERALL

OBJECTIVE

BY 2040

Biomass Roadmap

Page 52: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

SHORT-TERM(2019-2020)

MEDIUM-TERM(2021-2022)

INC

REA

SE R

E IN

STA

LLED

CA

PAC

ITY

TO

AT

LEA

ST

20

,00

0 M

W

LONG-TERM(2023-2040)

OVERALL

OBJECTIVE

BY 2040

RELIABLE AND EFFICIENT

INFRASTRUCTURE

• Strengthen resiliency of Biomass/Biofuels systems and facilities

• Harmonize transmission Development Plan with Biomass targets

• Develop Biomass installation target• Conduct R&D on the efficiency of Biomass technologies on

the Smart Grid System

ACTIVITIES TO BE UNDERTAKEN• Conduct briefing and provide technical assistance to biomass

RE developers and biofuel proponents in the formulation ofResiliency Compliance Plan (RCP) as required under the DC2018-01-0001; and,

• Coordination with EPIMB, NGCP and biomass RE Developersfor the conduct of testing & commissioning of biomassprojects situated in Negros Island.

Biomass Roadmap

Page 53: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

OVERALL

OBJECTIVE

BY 2040

SHORT-TERM(2019-2020)

MEDIUM-TERM(2021-2022)

CONTINUING

INC

REA

SE R

E IN

STA

LLED

CA

PAC

ITY

TO

AT

LEA

ST

20

,00

0 M

W

• Monitoring of Biomass/Biofuels Projects/Plants/Facilities• Biofuels Product Sampling

(Biodiesel – Quarterly; Bioethanol – Semi-Annually)• Conduct detailed Biomass/ Biofuels technology and resource

assessment• Continue and accelerate implementation of Biomass/Biofuels

projects• Conduct regular updating of Biomass/ Biofuels resource database

LONG-TERM(2023-2040)

ACTIVITIES TO BE UNDERTAKEN• Validation of successful commissioning of FIT eligible biomass projects to

complete the remaining installation target until end of December 2019;• Updating of biomass resource assessment conducted by USAID in 2012;• Monitoring, inspection and audit of biofuel plants and facilities to include

compliance to Philippine National Standards;• Monitoring and inspection of biomass plants/facilities; and,• Inspection and validation of biomass and biofuels projects’ work

accomplishments.

OVERALL

OBJECTIVE

BY 2040

Biomass Roadmap

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Department of EnergyEmpowering the Filipinos

SHORT-TERM(2019-2020)

MEDIUM-TERM(2021-2022)

INC

REA

SE R

E IN

STA

LLED

CA

PAC

ITY

TO

AT

LEA

ST

20

,00

0 M

W

LONG-TERM(2023-2040)

OVERALL

OBJECTIVE

BY 2040

• Continue conduct of Biomass/Biofuels technology research and development studies

• Identify viability of new technologies• Implement, monitor and evaluate pilot/demo projects for

new Biomass/Biofuels technologies

PROMOTE AND ENHANCE

R&D AGENDA

ACTIVITIES TO BE UNDERTAKEN• Revisit blending requirement for biodiesel and bioethanol with consideration on

feedstock supply availability, sustainability and price, logistics & infrastructurerequirements, economic benefits to farmers, final pump price (TRAIN), etc.;

• Conduct consultations and FGDs with bioethanol producers and oil companies onthe optimum utilization of locally-produced bioethanol and compliance to DC2011-12-0013;

• Completion of actual on-road test for B5 (15,000 kms.);• Public consultation for B5;• Monitoring of biofuel R&D projects undertaken by MMSU, UPLB and DOST-ITDI;

and,• Demonstration of the biomass gasifier system in Barangay Alad, Romblon until

3rd quarter 2019.

Biomass Roadmap

Page 55: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

SHORT-TERM(2019-2020)

MEDIUM-TERM(2021-2022)

INC

REA

SE R

E IN

STA

LLED

CA

PAC

ITY

TO

AT

LEA

ST

20

,00

0 M

W

LONG-TERM(2023-2040)

OVERALL

OBJECTIVE

BY 2040

• Continue technical capacity building on Biomass/Biofuels• Harmonize the DOE related programs with agro-forestry

policies for an integrated use of biomass• Continue the conduct of IEC to attain social acceptability

OTHER ACTIVITIES

ACTIVITIES TO BE UNDERTAKEN• Conduct information, education and communication (IEC) campaigns to

LGUs on bioenergy policies and programs, i.e., waste to energy (WTE) incollaboration with DENR-EMB, DOST-PCIEERD/ITDI, NSWMC;

• Pursue collaboration activities with DENR-Forestry Management Bureau toharmonize DOE programs with agro-forestry policies towards an integrateduse of biomass;

• Participate in international and local conferences, seminars, fora andworkshops to further information exchange and sharing of best practices onbioenergy and biofuel policies, emerging feedstock and utilizationtechnologies.

Biomass Roadmap

Page 56: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

• Biofuels feedstock supply, sustainability and price;

• Competing use both for biofuel and biomass feedstock;

• Regulatory permits and processes ARTA Law

• Transmission line constraints e.g. , Negros Island;

Page 57: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

The Way Forward

•Finalization / Approval of Guidelines on Renewable Energy Market (REM) Rules

•Establish Energy Investment Coordinating Center and Linkages with other Government Regulatory Agencies

•Resource Inventory and Establishment of RE Database

•Capacity Building / Information, Education and Communication Campaigns

•More Investment Missions / Business Meetings

Full Implementation

of the Renewable Energy Act

Page 58: Status Updates of the Philippine Bioenergy Industry · 8 Universal Robina Corporation Bais City, Negros Oriental 30 9 Absolut Distillers, Inc. Lian, Batangas 30 10 Progreen Agricorp,

Department of EnergyEmpowering the Filipinos

(+632) 479-2900

[email protected]

www.doe.gov.ph

//doe.gov.ph

@doe_ph

Thank You!

[email protected]