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MANILA - The Department of Energy will stretch the timeline for the mandated increase of biofuels in oil products.
Undersecretary Jose M. Layug, Jr. said the new biofuels program will stretch the increase in biofuels mix over a 20-year period to ensure there is enough supply to feed oil companies' requirements without compromising food production.
The DOE will submit the proposal to the National Biofuels Board and then conduct public consultations before approving the new program.
Layug said the department will complete the workshop it conducted with the Sugar Regulatory Administration, and Departments of Environment and Natural Resources and of Agrarian Reform to map out a new national biofuels program by September 26.
"We will ensure the program will be optimal, will not increase fuel prices and will have due consideration to the environment," Layug said.
The proposed biofuels program seeks to supplant the previous one, targets for which haven’t been met.
Under the Biofuels Act of 2006, the minimum blend of biodiesel was pegged at 1 percent or B1 in 2007 and 2 percent or B2 in 2009. The minimum blend of ethanol at 5 percent or E5 was scheduled in 2009, at 10 percent or E10 this year.
The country uses biodiesel and ethanol sourced from coconut and sugarcane, respectively.
Ethanol production is limited because there are only a handful of manufacturers in the country, forcing oil companies to import bulk of their requirements.
"What we need now to do is convince more investors to put up bioethanol plants in the Philippines," Layug said.
Supply of biodiesel, on the other hand, is contingent on the production of coconut, which is also used in other food and non-food products.
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