Philippines: Biofuels Annual
The Philippines has for years mandated biodiesel and ethanol blending in local petroleum diesel fuel and gasoline. As the country is the world’s top coconut oil producer, there have been no compliance issues in meeting the mandated two percent blend for biodiesel. Compliance with the current ten percent mandate for ethanol blend in gasoline, however, continues to be a challenge due to inadequate capacity of existing sugarcane distilleries, low productivity and high production costs. Challenges to local production are further compounded by commitments under regional free trade agreements that diminish incentive for additional infrastructure development. As result, imported ethanol is expected to satisfy the majority of domestic demand (i.e. the mandated blend in gasoline) for at least the next several years.
