The use of biofuels for transport is a major thrust of the Philippines to reduce the country's dependence on imported fossil fuels and to mitigate greenhouse gas emissions. To pursue this objective, the Congress enacted Republic Act. No 9367 otherwise known as the Biofuels Act of 2006. In accordance to the mandate of the said law, the government is presently implementing the National Biofuels Program (NBP) to promote investments in biofuel productions and encourage the utilization of this product. Other activities that coincide with this program are the establishment of support mechanisms to ensure adequate supply of feedstocks and the adoption of appropriate technology for vehicles/engines to be able to use alternative fuels.

In compliance with the mandate of the law, presently available liquid fuels in the market are blended with biofuels. Diesel engine fuel contains 2% blend of biodiesel by volume while gasoline fuel contains 5% blend of bioethanol by volume. By 2011, the mandated blend of bioethanol will increase to 10%.

Market Opportunity Increasing demand
  • Biofuels Act of 2006 - created a market for biofuels through the required blend of biodiesel and bioethanol with the standard diesel and gasoline fuel.
  • Bioethanol
    • market characterized by demand-supply gap and big volume of imports because capacity of existing bioethanol producers cannot meet the local demand
    • opportunity is in bioethanol production
  • Biodiesel
    • expected spur on demand due to the recommendation of increasing the blend further from 2% to 5%
Excess Supply
  • Biodiesel
    • market characterized by excess supply of biodiesel
    • opportunity is in the exportation of excess supply of biodiesel in the market
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