July 18, 2024 – The Philippine National Oil Company conducted its 11th “The Everything Energy (TEE)” Forum on July 18, 2024. The TEE Forum is designed to bring together stakeholders in the energy sector and to foster discussions, collaborations, and exchange of ideas among leaders and players in the energy industry. This month’s TEE Forum entitled Innovative Biomass Solutions: Driving Change Through Technology and Collaboration was led by Anna Mikko G. Realo, OIC-Chief of the Biomass Energy Management Division at Department of Energy and by Engr. Luis Angelo T. Canicon, Vice President of Power Sales and Trading Services at the BioPower Group.
With the country’s ambitious plan of increasing the share of renewable energy in the power generation mix to 35% by 2030 and 50% by 2040, biomass energy can be impactful in achieving these goals. Biomass energy is classified as a renewable energy source as it consists of organic matter derived from plants and animals, known as biomass feedstock. Biomass derives its energy from the sun, which is absorbed by living organisms and can subsequently be converted into usable energy through various direct or indirect methods.
“In the Philippines, the potential of bioenergy is vast since we have an abundant supply of agricultural waste, forest residues, and energy crops,” Realo said. The Philippines has diverse biomass resources which includes rice hulls, rice husks, cane trash, coconut waste, and animal waste. These resources are pivotal in biomass utilization technologies such as 1) biological/chemical conversion to produce biodiesel, methanol, and methane, 2) gasification, or 3) combustion.
The national government continues to advocate the use of biomass to utilize indigenous and sustainable energy sources and to reduce dependence on imported oil as well as ensuring the availability of fuel alternatives. These goals are strengthened by Republic Act (RA) No. 9367 which mandates that all liquid fuels shall be blended with locally sourced biofuel components. The Department of Energy has also released its guidelines increasing biofuel blend rates targeting B3 by October 2024, B4 by October 2025, and B5 by October 2026. This regulatory initiative guarantees sustainable incorporation of biofuels in the power generation mix.
The national agencies continue to unveil the potential of the biofuel with the National Biofuel Board (NBB) creating a Sustainable Aviation Fuels (SAF) Committee which is composed of government agencies to develop the SAF roadmap. One of the potential feedstock for SAF production is Used Cooking Oil (UCO) that is refined through hydrogenation using Hydroprocessed Esters and Fatty Acid (HEFA) technology. This R&D in SAF production is conducted through the partnership of DOE and DOST.
Indeed, the potential of biofuels is undeniably promising as the country transitions into a cleaner and sustainable future for the Filipino people. But despite that, the renewable energy sector in the Philippines experiences hurdles in achieving these goals. Realo cited challenges that impedes the utilization of biofuels. These challenges include ensuring feedstock supply for biodiesel and bioethanol production, lengthy regulatory processes, and financial and investment issues. The government sector is committed to addressing these challenges. In fact, the PCA launched its program to increase coconut planting. The DOE also aims to streamline lengthy regulatory processes throughout the Energy Virtual One Stop Shop System (EVOSS). The department also initiated its investment promotion activities to attract and encourage investors such as B2B matching of RE Developers with possible investors.
Additionally, Engr. Canicon has also shared the challenges faced by the private sectors in the biomass industry. He said that the lack of incentives for biomass technology should be managed by the government by providing subsidies and financial support. Compared to countries like China, Japan, Thailand, and Indonesia, the country has less financial aid for biomass power generation.
“For the Philippines to meet its ambitious RE targets, it must incentivize RE development by setting fair REC prices that reflect the true value of clean energy investments and maintain a balance between consumer welfare and market stability,” Engr. Canicon added.
The DOE and TRANSCO are working together to promote investment in RE technologies with initiatives like GEAP, RPS, and Feed-in Tariff to achieve the RE targets, however, as Engr Canicon cited, “ while these agencies are encouraging investments, ERC’s policies contradict these initiatives by limiting subsidies and incentives for RE technologies.”
The speakers at the PNOC TEE forum have shared valuable insights about the bioenergy sector in the Philippines. It is evident that the country has a rich biomass resources, in spite of that, addressing the challenges mentioned in the forum is vital for realizing the full potential of biofuels. It is clear that expanding incentives and investment opportunities can accommodate private sectors and biomass project developers in the promotion of renewable energy and improving biomass production through fostering innovative technologies. The public and private sectors synergy is important in creating regulatory reforms and strategic plans to provide the Filipinos energy security and sustainability and to make the Philippine Energy Plan Targets attainable.