Energy Options: Pagpilian natin

Running on biofuels (2)
First posted 05:03am (Mla time) Oct 02, 2005 By Inquirer News Service
http://news.inq7.net/opinion/index.php?index=1&story_id=52021

RECORD FUEL PRICES ARE RESULTING IN LOWER CONSUMPTION OF petroleum products in the country. With the retail price of unleaded gasoline rising by 77 percent and that of diesel by 114 percent from September 2003 to September 2005, many motorists are cutting down on the use of these two types of fossil fuel.

Instead of driving their cars, a number of motorists are using motorcycles or are taking public modes of transportation like the jeepney, bus and electric-powered train (if one is in Metro Manila). Others would rather walk or use a bicycle for short distances.

Still others are shifting from gasoline or diesel to cocodiesel or ethanol—the two kinds of biofuel that the government is promoting.

Government is pushing for the use of cocodiesel and ethanol mainly for economic reasons. The country could save P14 billion a year from fuel efficiency if all vehicles with diesel engines use cocodiesel, according to the Department of Energy. Savings from the use of a five-percent blend of ethanol by gasoline-powered vehicles are estimated at P7 billion a year.

Although using biofuels makes economic sense, some motorists are reluctant to try them for fear of destroying the engines of their vehicles. Educating motorists on the benefits of biofuels can make them change their minds.

Availability of the alternative fuels is another issue that the government and the oil companies must address. Biofuels are being sold by small oil firms whose network of stations does not cover many parts of the country.


©2005 www.inq7.net all rights reserved

Motorists raise questions of safety and availability
First posted 05:03am (Mla time) Oct 02, 2005 By Gerry Lirio, Inquirer News Service
http://news.inq7.net/opinion/index.php?index=1&story_id=52022

ARE they safe? Are they available? More than anything else, these two questions have bothered motorists the most on the government-led drive to promote the use of alternative fuels, particularly ethanol and coco-biodiesel.

The Department of Energy (DOE), along with the United States Agency for International Development (USAID) and the United States Department of Energy (US DOE), has endorsed the use of coco-biodiesel for diesel engines and ethanol for gas engines in the hope of promoting clean air and reducing dependency on imported fuel.

The concerns of motorists on the safety and availability of biofuels were most evident in public consultations sponsored by the Clean City Program, a joint project of the three agencies. The consultations were held in Marikina, Baguio and Davao cities—three pilot areas of the program.

Besides cocodiesel and ethanol, the government and the two US agencies are promoting compressed natural gas (CNG), otherwise known as Malampaya gas, and autogas or liquefied petroleum gas. All four are alternative fuels, but only cocodiesel and ethanol are renewable.

There is no doubt that they are all less hazardous to the environment than gasoline and diesel, and would thus reduce the $400 million spent by the government on health problems spawned by air pollution.

Biodiesel is an international name for methyl ester when used as diesel fuel or enhancer. Coconut oil, which is abundant in the country, is the raw material for the additive called cocomethyl ester (CME). CME has been approved as an enhancer by several international agencies, among them the American Society for Testing Materials, European Standards, and the Philippine National Standards.

Ethanol is a high-octane fuel produced by the fermentation of sugar from crops such as sugar cane, corn and wheat. It is a clear, colorless liquid with an agreeable odor.

Daniel Moore, chief of the USAID Office of Energy and Environment, says ethanol and cocodiesel, which have gained popularity and acceptance in the Western world, are safe for vehicles in the Philippines.

Still, questions about the safety and availability of alternative fuels raised a level of concern that is peculiar to a Third World country like the Philippines where there are at least 3.3 million licensed drivers.

Losing one’s savings

For instance, a former overseas Filipino worker (OFW), who bought a number of Toyota FX units, is open to using alternative fuels, but fears losing his investments drawn out of his savings from years of working in the Middle East.

And there is this most-frequently asked question by public utility drivers: Can their decades-old jeepney run on coco-biodiesel? Foreign and local experts say yes.

To date, the DOE has endorsed the commercial sale of gasoline with 10-percent ethanol. Beyond that requires a modification of diesel and gas engines.

Based on the results of tests conducted by the DOE, USAID and US DOE, if you blend 10 percent of your full tank with ethanol, you reduce carbon monoxide emission better than other reformulated gasoline blend by as much as 25 percent. As an octane enhancer, ethanol can cut emission of cancer-causing benzene and butadiene by more than 50 percent.

Before they agreed to sell ethanol, Seaoil executives tried it using their own cars. Allan Espino, business development manager, said the ethanol blend improved his car’s mileage. The blend made the car lighter to drive and removed the unwanted noise.

Boy Vargas, national president of the Alliance of Transport Operators and Drivers Association of the Philippines, has been using cocodiesel to run his 1999 Isuzu Hi-lander since 2001. His vehicle got a 2.5-percent grade in its last emission test. He has used 100-percent biodiesel on many occasions, especially during his out-of-town trips.

More tests

Government and private experts will conduct more tests in Marikina, Makati, Baguio and Davao cities involving more participants next month.

There are two major suppliers of coco-biodiesel in the Philippines—Chemrez and Senbel. Chemrez is bigger while Senbel is older, having pioneered cocodiesel production when the government first launched the program in the late 1970s and early 1980s.

Supply not a problem

As far as the two companies are concerned, supply is not a problem. Dean Lao Jr., Chemrez’s operations manager, said the firm had embarked on the construction of a P650-million plant to keep up with the expected upsurge in demand. The plant, which has a capacity of 60 million liters a year, is expected to be operational by March 2006.

But despite the abundance of supply, availability is a major concern.

The country has an average oil consumption of 350,000 barrels a day, half of which is used by land transport.

Shell and Caltex

Energy Secretary Raphael Lotilla said the government expected the Big Three to follow suit. How soon? Nobody knows.

But it will be the biggest breakthrough in the government campaign if and when Petron, Shell and Caltex finally decide to sell pre-blended biodiesel and ethanol. Petron and Shell each account for 35 percent of the market. The combined market share of Seaoil, Flying V, USA88 and the other small players is only 10 percent. Caltex has the rest.

Chemrez and Senbel each have at least 50 retail outlets nationwide. Flying V has 125 stations nationwide. Seaoil has 105, also nationwide.

The government-owned Petron has begun to sell biodiesel in retail packs, but this poses some inconvenience to motorists. All the minor players sell pre-blended fuels.

Surge in sales

So far, only the minor petroleum companies sell biodiesel and ethanol. Francis Glenn Yu, Seaoil president, said his company has experienced a 33-percent increase in sales since it carried the alternative fuels the past months.

Lotilla and Moore said cocodiesel consumption would neither dislodge nor upset other coco-based industries. On the contrary, it has revitalized the industry because of the newfound market. It will give the country’s 3.6 million farmers additional income.

But are all biodiesels the same? No, because the behavior of their molecular profiles differs. Called the poor man’s oil, diesel is cheaper in the Philippines as a result of the socialized pricing scheme when oil was still a regulated industry. There was suspicion that oil companies managed to get by with a reduction in the use of additives, which could otherwise improve emission standards.

Malampaya gas can supply only Luzon, but not the Visayas and Mindanao.

Imported

Unknown to many, the ethanol sold locally is still imported. Yu said Seaoil would need at least 18 months to build an ethanol plant. The firm will start building one as soon as the government enacts into law mandating the use of ethanol. But whether local or imported, ethanol attracts water, which is harmful to engines. And in this flood-prone country, poor storage and careless refill may lead to an engine overhaul.

Another question posed by another OFW at the Marikina forum is now the subject of a test by DOE experts. The OFW, who had worked in Canada, opined that biodiesel was not suitable in relatively cool parts of the country like Baguio because it might coagulate. This has raised another concern: How long can biodiesel be stored? But this is more a problem for producers and distributors, not for jeepney drivers, who get frequent refills. Then of course, in the Philippines, how low can the temperature get?

Public information

Next month, the three agencies will formally launch “Fuels for Life,” a project of the Clean City program to get the attention of the public using personalities in government, civil society, business and entertainment as major endorsers of alternative fuels. The project will be launched consecutively in Baguio, Davao and Metro Manila.

Local officials in Marikina, Baguio and Davao have also issued memoranda ordering their executives to use either ethanol or biodiesel in government vehicles and even in privately owned cars in compliance with an executive order signed by President Macapagal Arroyo two months ago. There are 29,619 diesel-run government vehicles, including those owned by local government units.

For the people behind the “Fuels for Life” project, the question of safety can be resolved through an information drive. Political will can address the concerns on availability.

(Lirio is the head of the Inquirer I-Team.)

Prices and availability of alternative fuels

Fuel Price Supplier Station

CME 100 percent P125/liter Flying V All Flying V stations

CME 1 percent
(pre-blend) P32/liter Flying V All Flying V stations

CME Pail/Drum:
P65/liter
Bottle:
P125/liter Chemrez All Flying V stations

CME P85/liter Senbel

E10 P35.15 pump price Flying V Flying V Marikina, E. Rodriguez
Bioexceed P135/liter P30/200 ml Seaoil All Seaoil stations


©2005 www.inq7.net all rights reserved

Our energy options
First posted 05:03am (Mla time) Oct 02, 2005 By Inquirer News Service
http://news.inq7.net/opinion/index.php?index=1&story_id=52023

WHILE we at the Department of Energy fret about the quality of energy that the country can produce, we equally worry about the quantity. Can we produce enough to satisfy our country’s present and future needs?

By 2035, the world will use twice the energy being used today. At the same time, demand for oil will jump from the current 87 million to as much as 140 million barrels a day. Use of natural gas will climb by 120 percent, and that of coal by 60 percent. By 2020, demand for electricity is estimated to be 70 percent higher than today. Yet, more than 1.5 billion people or one-fourth of the world’s population have no access to electricity or fuel. The demand for energy is a certainty. Where to get that energy is the challenge we all face.

Just to keep up with the projected demand, oil-producing states will need to discover, produce, refine and bring to market 140 million barrels of oil per day, 24 hours a day, seven days a week, without fail. They not only have to build up their current peak production to such astounding levels. They must also maintain it. Most importantly, they, too, must spend for it (perhaps to the tune of $3 trillion). Now, let’s try repeating the same exercise for coal and natural gas, day after day, year after year, without fail.

Members of the Organization of Petroleum Exporting Countries have declared that they have 45 years’ worth of proven reserves with everything held constant. But change is the norm on the global oil market. With dwindling supply and ever-increasing demand, along with geopolitics, we should expect the continued volatility of the prices of imported oil. This is not good for a country that imports pretty much all of its oil.

Given the above scenario, what viable options do we have in the Philippines? Here is a list of our conventional and renewable energy options, along with some personal comments. From this, we hope, will come our sustainable and affordable energies of the future.

1. Oil. At present prices, we can’t live with it, and we can’t live without it. Prices are up by 100 percent in the past 18 months, 650 percent in the last six years.

2. Nuclear power. We have a moth-balled nuclear power plant in Bataan.

3. Malampaya natural gas. The fuel of choice. An estimated 4.7 trillion cubic feet is being tapped. Good enough to fuel the transport and power sectors for decades to come. Unlike oil, it is a lot more difficult to transport and store. CNG (or compressed natural gas) buses will begin using natural gas within the year. Dozens of explorations across the country in search of the next Malampaya are going on. More infrastructure projects are in the pipeline to expand use of natural gas in the country.

4. Liquefied natural gas. Cheaper form of natural gas but it will have to be imported. Big investments in terminals will be required. Project is in the works.

5. Coal. It’s abundant, cheap and unclean. Its quality can be improved. We will remain dependent on it for decades especially for power. The DOE is working on a project that will transform coal to ultra-clean transport fuels.

6. Cocodiesel. Not so long ago, we were one of the world’s leading producers of coconut. Improves mileage efficiency by 17 to 32 percent. Drastic reduction in emissions (particulate matter).

7. Ethanol. Not so long ago, we too, were one of the leading exporters of sugar. Increases octane and improves efficiency.

8. LPG. Filling stations are also expected to open within the year. Liquified petroleum gas is expected to be cheaper by 20 percent than conventional fuels.

9. Geothermal energy. We are the world’s largest producer of geothermal energy on a per capita basis.

10. Solar energy. The amount of solar energy in the Philippines in one day can fuel our economy for 20 years.

11. Hydro power. Of the amount of rainfall that falls on Philippine soil every year, less than 5 percent is put to good use (i.e. power).

12. Ocean power. The Philippine coastline is reported to be longer than that of the United States. There is proven potential underneath our waves. Studies are on-going at the DOE.

13. Wind power. I quote the World Watch Institute in its State of the World report saying, “During the past 15-20 years, wind energy technology has evolved to the point where it competes with most conventional forms of power generation. In many instances, wind is now the cheapest option on a per-kilowatt basis.” The country has 76,000 (megawatts) MW of wind potential. We have more than 7,000 MW of immediately developable potential. The very first grid-connected wind power project in Southeast Asia is now operational in Ilocos Norte. We have launched the first wind contracting round for 10 sites involving 245 MW. Another 18 sites are being evaluated.

14. Hydrogen. It is the most abundant element in the universe and when you get it in its purest form it is the “ideal fuel.” The key is getting it on its own. Hydrogen is highly reactive that’s why it’s almost always in hybrid form. And the most famous hydrogen compound is water. If we can separate hydrogen from water economically, then we shall have limitless energy that does not pollute. The quest goes on.
(This is a shortened version of the article that Abaya, an undersecretary of the Department of Energy, submitted to Talk of the Town.) ©2005 www.inq7.net all rights reserved

Margie: From Miss Universe to Ms Fuels for Life
First posted 06:33am (Mla time) Oct 02, 2005, By Gerry Lirio, Inquirer News Service
http://news.inq7.net/nation/index.php?index=1&story_id=52033

MARGIE Moran, Miss Universe 1973, has taken on a new title-"Miss Fuels For Life."

Now in her 50s, Moran will help promote environment-friendly fuels as the primary endorser of "Fuels for Life,'' a spin-off of the Clean City program of the government and two United States agencies.

Moran's new title comes without a crown, and she will receive no talent fee.

If at all, she would be asked to wear a pin bearing the words "Fuels for Life''-referring to environment-friendly and renewable fuels such as coco-biodiesel and ethanol, which are collectively called alternative fuels.

"This is the wave of the future,'' Moran, the country's second Miss Universe title holder, told the Inquirer in an interview. "Oil prices keep on rising. And we will surely run out of fossil fuels. We need to find, develop and promote alternative fuels now."

She agreed to endorse alternative fuels after meeting with representatives of the United States Department of Energy last month.

Alternative fuels

The Department of Energy, along with the USDOE and the United States Agency for International Development, has been promoting the use of these alternative fuels for cleaner air and to lessen the country's dependence on imported fuel.

Biodiesel is sourced from coconut and used to run diesel engines. Ethanol comes from sugar and is used to run gas engines. Both coconut and sugar grow abundantly in the Philippines.

Moran will spearhead the launching of the "Fuels for Life'' movement in Davao City on Oct 27. It will be capped by a fashion show at the Waterfront-Insular Hotel featuring other users and promoters of alternative fuels, namely, Rep. Miguel Zubiri of Bukidnon, Daniel Moore, chief of USAID Office of Energy and Environment; USAID senior technical advisor Rosario Calderon, actor Joel Torre, lawyer and former beauty queen Zoraida Andam, bar topnotcher January Sanchez, Jeffrey Hidalgo of Team Explorer and local Davao officials.

"Fuels for Life" will also be launched in two other cities in Metro Manila and Luzon this month. A 10-minute educational video will be shown in more than 200 buses running on compressed natural gas, another alternative fuel, sourced from Malampaya, off Palawan.

Tourism, environment

But long before the government started endorsing alternative fuels, Moran had been in the forefront of the environment movement and other civic causes.

She left her cosmopolitan life in Manila 16 years ago to join her husband, banana magnate Antonio Floirendo Jr., now a congressman, in Davao. Soon after, she revamped the image of Davao, and later Mindanao, as a tourist destination.

She helped set up Pearl Farm Resort, an eco-tourism destination. She also worked on achieving peace between the government and the secessionist movement.

Moran is a Tabang Mindanaw task force member, chair of Youth Build 2002 of the Habitat for Humanity, and president emeritus of Save Davao Gulf Foundation, which seeks to protect the Davao gulf area.


©2005 www.inq7.net all rights reserved