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• In Washington D.C. last March 10, Philippine Forest Corp. (PFC) signed a
jatropha production contract with Abundant Biofuels Corp. (ABC), a US
firm engaged in the business of biofuel alternative energy production.
Based in Monterey, California, ABC will operate the jatropha production
and refinery business in Bukidnon through its subsidiary Bio-Fuels
Philippines, Inc. Rene Lacsina, president and CEO of Bio-Fuels
Philippines, Inc. signed a $200-M jatropha production contract with the
Philippine Agriculture Development Corp. (PADC). Lacsina recalled PFC
brought him to Negros to join the group of former Cong. Herminio Teves
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enough excess sugar to supply the 10% ethanol requirement of the law
while jatropha can be planted in close to 4-M hectares of cogonal
mountain land that remain idle.”
• PAFC Chair Renato Velasco said that while it is true that the worldwide
biofuels program has generated a food vs. fuel debate since the setting
aside of more land for planting biofuel crops has affected food production,
the scenario in the Philippines is completely different. “As for jatropha as a
biodiesel foodstock, we do not compete for land use with producers of
rice, corn, fruits, vegetables and livestock. We do not entice land-owners
and farmers to shift from food production to jatropha farming since
jatropha can grow on idle lands or denuded hills,” he said. “The issue over
diverting food to fuel does not apply here. That is the biggest advantage of
jatropha. It is unlike other feedstocks which are also vegetable oils and
cosmetics bases such as rapeseed, palm, sunflower, soy, and linseed.
And this is why PAFC is betting on this miracle seed, first and foremost for
our country’s energy independence. Food and fuel security can go hand in
hand. Food security is not a function of productivity, it is a function of
purchasing power,” he added.
V. Legislative Initiatives
• There are twin bills, both pending in Congress, that seek to aggressively
pursue a government policy that requires the use of renewable or
alternative energy. One of them is the Renewable Energy bill authored by
Sen. Miguel Zubiri and the other is the Alternative Fuels authored by Sen.
Miriam Santiago.
yield at least 34% oil content. The local variety, however, yields less than
the practical standard. “Only 28 to 32% oil is said to be extractable,” the
experts said.
• PAFC spent only P80-M out of a total budget of P1.1-B for jatropha
development said PAFC Chair Renato Velasco. “We spend some P30-M
for the comprehensive R&D for jatropha in the country,” he said. In the
US, he said the University of Michigan has ranged PAFC’s jatropha
development researches among the top 5 in the world.
VIII. Biofuels Act (RA 9367) and Implementing Rules & Regulations (IRR)
• “Yes, we are implementing the Biofuels Act. All diesel fuels sold in the
country already contain 1% biodiesel since May 6, 2007,” explained
Energy Sec. Reyes. Within two years from the effectivity of the act, the
National Biofuels Board, according to the law, shall determine the
feasibility of increasing the blend and recommend to the DOE to mandate
a minimum of 2% of biodiesel by volume subject to domestic supply and
availability of locally-sourced biodiesel component.
• The law is not specific about land use conversion. This is possibly the
trickiest aspect of the law, as it touches on land reform and the food
versus fuel debate that was emphasized in the media lately. The SRA
expressed misgivings about the dearth of policies on land use. The SRA is
tasked to check the suitability of lands for feedstock plantation before a
potential planter ventures into planting vast tracts of sugar crops.
the DENR among the members of the NBB despite the reported ecological
harm associated with feedstock growing. Despite an alleged surplus in
feedstock, especially in the case of sugarcane, the Philippines is expected
to fall short of the target supply needed to comply with the mandated
blends. One reason is that there aren’t enough processing plants for
biofuels. “For biodiesel, I think we have enough supply,” Gonzales said.
“But for bioethanol, we need to set up at least 10 more factories, and each
factory needs 30 million liters. One factory alone needs at least one year
and a half to construct.
• Clearing forests to make way for feedstock implementation has caught the
attention of environmental groups all over the world. Biofuel production in
Indonesia, for instance, is currently under scrutiny by government and
NGOs worldwide. Conversion of forests and grasslands into palm oil
plantations is said to be emitting more carbon than gasoline usage. These
conversions release 17 to 423 times more carbon than the amount
reduced by biofuel use, revealed a February 2008 study by the University
of Minnesota and the Nature Conservancy titled The Dark Side of
Biofuels.
• With the passing of the Biofuels Act, the Philippines aims to become the
biofuels capital in Asia. It mandates the granting of government incentives
to companies that will invest in the development and production of
ethanol, biodiesel, and other plant-based fuels. These incentives are in the
form of tax exemptions and concessional loans from GFIs.
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X. Tree Plantations
• The Natural Resources Development Corporation (NRDC) is launching an
agro-forestry program “Planting Futures” designed to enhance the
rehabilitation of the country’s denuded forest areas and create more
income-generating opportunities in the countryside. DENR Sec. Atienza’s
directive seeks to encourage the planting of industrial trees yielding
hardwood and developing other agro-forestry products. Planting Futures
seeks to initially rehabilitate some 50,000 hectares of denuded forest
areas in various parts of the country. Planting Futures will involve the
participation of local government officials in the establishment of industrial
tree plantations in partnership with local government units (LGUs) in
various provinces.
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