Philippines Eyes Higher Ethanol Blend as Corn and Palm Oil Gain Favor
The Philippines is considering raising its ethanol blending requirement to 15% from the current 10%. This move aims to make domestic bioethanol more competitive with imported fuel, supporting local farmers and related industries. The government believes that securing cheaper feedstock could lower production costs and eventually help reduce gasoline prices.
Agriculture Secretary Francisco Tiu Laurel Jr. said that diversifying raw materials used for bioethanol production is a key part of the plan. This includes exploring the use of molasses, sugarcane juice, locally produced corn, palm oil, and ways to utilize idle distillery capacity.
Corn is among the feedstock options being examined, with the Agriculture Department planning to increase production through improved seeds, mechanisation, and contract farming arrangements with ethanol plants. However, commercial viability would depend on ethanol producers sourcing corn at competitive prices.