Philippines: Biofuels Annual

  |   Attaché Report (GAIN)   |   RP2023-0041

In support of climate action, the Philippines calculated its carbon intensity for ethanol made from molasses and sugarcane at 46.8 gCO2e/MJ, and of biodiesel from crude coconut oil and refined coconut oil at 32.8 gCO2e/MJ and 31.5 gCO2e/MJ, respectively. Moving to a higher blend will generate more savings from avoided GHG emissions and lowers ethanol blended gasoline costs to consumers when ethanol prices fall below gasoline prices. Post sees Philippine biofuels consumption recovering in 2023 in line with economic growth, as fuel ethanol demand grows eight percent to 693 million liters and biodiesel increases 14 percent to 230 million liters driven by fuel pool increases and not higher blending. Both fuel ethanol and biodiesel programs have stagnated for years with no appreciable upward movement in blend rates despite higher aspirational goals. Ethanol production remains flat at 375 million liters due to feedstock problems. Imported ethanol fills the gap, growing by 12 percent to 310 million liters in 2023.

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