Fuel ethanol as an alternative energy source: prospects and problems

This paper presents the need and importance of utilizing ethanol as an alternative fuel in order to develop and utilize a renewable, sustainable and clean energy source to reduce dependence on imported oil, increase rural employment and income, and ensures partial energy security without detriment to the environment and food reserves of the country. While fuel ethanol production in other countries is rising, the Philippines produces only 792,000 liters of alcohol per day, mainly for pharmaceuticals and beverages. For a 10 percent blend with gasoline, the country will require 27 new distilleries with a rated capacity of 590 KL of ethanol per day operating for 300 days. Other than the production side, the distribution and utilization aspects offer more opportunities and prospects for entrepreneurs and other interested parties. The pitfalls of the Philippine Alcogas Program in the 80's which included the lack of enabling laws, technical problems and unfavorable micro and macroeconomics were lessons learned for the formulation of the new biofuels program, which was initiated by the sugar industry in 2004. Today, the Biofuels Act of 2006 (R.A. 9367) complimented by the Philippine Clean Air and Clean Water Acts, competitive cost of ethanol viz-a-viz gasoline, improved gasoline engines and parts, surplus production of sugars and spiraling cost of crude oil, are all in favor of bioethanol utilization. The technology of fuel alcohol production has already reached a high degree of development with increased efficiency and improved economic competitiveness. There are more advanced production techniques such as continuous fermentation, immobilized microbial and enzyme systems, membrane technologies, energy efficient utilization techniques and genetic engineering, which when adopted resolve some problems of conventional processing. Research and development on sweet sorghum utilization and cellulosic conversion to utilize feedstocks such as wood and forestry wastes will further enhance the feedstock base for bioethanol production. For the bioethanol program to be viable and sustainable, the opportunities for the business sector must be opened through governmental support, by way of tax incentives, grants and financing guarantees and legislative actions. The environmental, health and safety concerns have been addressed and deemed non problematical. The sharing system uniquely practiced in the Philippines and the political scenario remain the main stumbling block for the immediate implementation of the program. Since the path towards the successful replacement of a traditional fuel is difficult, long term and costly, a determined government action with multisectoral support from other stakeholders like the oil companies, vehicle manufacturers, chemical companies, farm producers, retailers and consumers cannot be understated.