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IMPROVEMENTS IN CONVENTIONAL FUELS AND
UPDATES ON ALTERNATIVE FUELS PROGRAM
IMPROVEMENTS IN CONVENTIONAL FUELS AND
UPDATES ON ALTERNATIVE FUELS PROGRAM
A Presentation by
ZENAIDA Y. MONSADA
Director, OIMB- Department of Energy
A Presentation by
ZENAIDA Y. MONSADA
Director, OIMB- Department of Energy
Partnership for Clean Air General Assembly Asian Development Bank 20 October 2005, Mandaluyong City
Partnership for Clean Air General Assembly Asian Development Bank 20 October 2005, Mandaluyong City
Power Mix Power Mix Energy Mix Energy Mix
2004 Energy/Power Mix2004 Energy/Power Mix
Others
32.1% Oil
36.8%
Coal
12.3%
Natgas
6.3%
Geo
6.8%
Hydro
5.6% Oil14.8%
Coal
28.9%
Natgas
22.6%
Geo
18.4%
Hydro
15.3%
Source: Department of Energy
FUEL EMISSIONVEHICLE
DOE DOTC / LTO / MMDA / DTI / DOST DENR
Fuels and Vehicle EmissionsFuels and Vehicle Emissions
Fuel Quality Improvement
Aromatics 45% max Jan. 1, 2000 Benzene 4% max Jan. 1, 2000 AKI 87.5 min Jan. 1, 2001RVP 9 psi max Jan. 1, 2001Aromatics 35% max Jan. 1, 2003Benzene 2% max Jan. 1, 2003
Unleaded Gasoline
Automotive DieselSulfur 0.2% max Jan. 1, 2001Cetane No./Index 48 min Jan. 1, 2001 Sulfur 0.05% max Jan. 1, 2004
Industrial Diesel
Sulfur * 0.3% max Jan. 1, 2001
CAA Requirements – Fuel SpecsCAA Requirements – Fuel Specs
*Note: 0.05% max effective Jan. 1, 2009, per PNS
1. CONVENTIONAL FUELS
PNS 1131:2000 (ULG complying to CAA for 2000 specs)
PNS 20:2000 (Diesel complying to CAA for 2001 specs)
PNS 1131:2001 (Multigrade ULG complying 2001 specs)
PNS 1131:2002 (ULG complying to CAA 2003)
PNS/DOE QS 004:2003 (Diesel complying to CAA for 2004 specs, and possible differentiation between tax-free and tax-paid)
PNS/DOE QS 001:2005 (ULG with sulfur level conforming to EURO II standard of 0.05% mass max.)
DPNS/DOE QS 007:2005 (Bunker Fuel)
Fuel Quality StandardsFuel Quality Standards
Phase out lead in gasoline 9 mos. ahead of sked – MMPhase out lead in gasoline 9 mos. ahead of sked – MMAccelerated sulfur reduction to 0.05% S in ADO 2 mos. ahead of sked MMAccelerated sulfur reduction to 0.05% S in ADO 2 mos. ahead of sked MM
Fuel Quality StandardsFuel Quality Standards
2. ALTERNATIVE FUELS
PNS 2020:2003 (B100 = 100% CME)
- DOE CME Logistical Test Protocol
PNS/DOE QS 003:2003 (2-stroke Lubricating Oils, update of 1992)
PNS/DOE QS 005:2005 (Auto-LPG, update of 1990)
DPNS/DOE QS 007:2005 (Anhydrous Bioethanol Fuel)
Drafting of standard for Jatropha
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Fuel Ethanol Program)(Fuel Ethanol Program)
DPNS QS 007:2005 Anhydrous Bioethanol Fuel Specification
1. Raw Materials Imported Ethanol – 99% purity Local Ethanol
- Anhydrous- Hydrous
2. Intermediate Products Fuel Ethanol Pre-blended gasoline
3. Finished product offered at gas stations E-gasoline, E5 & E10
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
3. FACILITIES STANDARDS
PNS/DOE Petroleum Products for Retail Outlets (promulgated by BPS Feb. 23, 2005)
PNS/DOE FS 1-1:2005 – Health, Safety and Environment PNS/DOE FS 1-2:2005 – Underground Storage Tank PNS/DOE FS 1-3:2005 – Piping System PNS/DOE FS 1-2:2005 – Dispensing Pumps
DPNS on LPG Refilling Plant (For promulgation 1Q 2006)
Drafting PNS for Storage Facilities
Draft DC on Handling, Transport & Distribution of LPG Cylinders
Facilities Quality StandardsFacilities Quality Standards
» Types of additives applied/registered:Types of additives applied/registered:- Octane enhancerOctane enhancer- Lubricity/friction modifierLubricity/friction modifier- Emission/smoke suppressantEmission/smoke suppressant- Fuel efficiency improverFuel efficiency improver- DetergentDetergent- Deposit controlDeposit control- Anti-valve seat recession and othersAnti-valve seat recession and others
Fuel Additives Registration *» Total Applications filed - 79
Permanent Registration granted - 24 Total Provisional Registration Issued - 31 Applications Reviewed/Evaluated - 24
(subject for further compliance)
* As of 15 October 2005
DOE Role - Additives RegistrationDOE Role - Additives Registration
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
Alternative Fuels Program
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Coco-Biodiesel Program)(Coco-Biodiesel Program)
POLICY INITIATIVES
MC No. 55 “Directing all Departments, Bureau, Offices and Instrumentalities of the Government …. to Incorporate the Use of 1% by volume CME in Their Diesel Requirements (Feb 9, 2004)
DC No. 2004-04-003 “Rules and Regulations Implementing MC 55 (March 29, 2004)
Supreme Court M C No. 07-2004 “Directing the Supreme Court, Court of Appeals, Sandiganbayan and the Court of Tax Appeals to Use 1% CME (June 23, 2004)
DC No. 2005-04-003 “Promoting the Use of Coco-Biodiesel as an Alternative Clean Fuel” (March 1, 2005)
Alicia, Isabela Resolution No. 2004-009 “Requiring the Use of CME by All Motorists… In support of the Clean Air Act (Feb 11, 2004)
Baguio City Resolution No. 154, Series of 2004 “Encouraging the Use of CME by All Motorists …. In Support of the Clean Air Act (June 29, 2004)
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Coco-Biodiesel Program)(Coco-Biodiesel Program)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
Coco-Biodiesel Distribution Network
B100 Dealers/retailers
- 192 gasoline stations (Flying V and Seaoil)
- 110 retailers/distributors (Chemrez and Senbel)
Pre-blended 1% CME (B1) outlets
- Flying V stations - Unioil
- Seaoil - FilOil
-USA 88
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Coco-Biodiesel Program)(Coco-Biodiesel Program)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
I E C
• Stakeholders consultations and seminars on Coco-Biodiesel Program, M C 55 and demand expansion (expanded utilization of CME) in cooperation with TUP, PCA, CME manufacturers and USDOE/USAID SEDP
• Audio visual presentations, collateral materials & website
• Focused group discussions (i.e. clean cities program)
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Coco-Biodiesel Program)(Coco-Biodiesel Program)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
Steps Forward
Legislative measure: Biodiesel/Biofuels Bill
- mandate 1% CME blend by 2006 to all diesel fuel
Continue IEC campaigns to accelerate public acceptance especially in Clean Cities pilot areas (Baguio, Davao, Marikina and Makati)
Expand utilization of CME: nationwide; power generation and marine transport
HB 4629 – Mandating the Use of Bioethanol or Ethyl Alcohol and other Biofuels as
Transport Fuel
SB 2007 – Mandate the Use of Biofuels in the Transport Sector
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Fuel Ethanol Program)(Fuel Ethanol Program)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
LEGISLATIVE MEASURES
Ethanol Production
NDC-Bronzeoak Fuel Ethanol and Power Plant
- Location: San Carlos City, Negros Occidental
- Investment: P1.5 Billion
- Ethanol Distillery: 100,000 liters/day (30 million liters/yr.)
- Cogeneration Plant: 9 MW
- Timeline: 1Q 2006 (construction); 2nd Half 2007 (operation)
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Fuel Ethanol Program)(Fuel Ethanol Program)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
SUPPLY
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Fuel Ethanol Program)(Fuel Ethanol Program)
• Executive Order No. 449 – Tariff is reduced from 10% to 1% when imported with certification from the Department of Energy that this article will be used for the Fuel Ethanol Program.
- Quality Specification: Ethyl alcohol strength by volume of exceeding 99% volume
• Tax Code – P 0.05/l excise tax on fuel ethanol vs. P23.30/l
• DOF–DOE Joint Guidelines drafting
• BIR Draft Revenue Regulation
INCENTIVES
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Natural Gas Program)(Natural Gas Program)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
POLICY INITIATIVESExecutive Order 164 providing 1% import duty of NGV related equipment, parts and
components (January 10, 2003)
Promulgation of 48-sets of Philippine National Standards for Natural Gas Utilization for Transport (June 2003)
Executive Order 290 “Implementing the Natural Gas Vehicle Program for Public Transport” (February 24, 2004)
Department Circular No. 2004-04-004 “Guidelines on the Issuance of Certificate of Accreditation (CA) and Certificate of Authority to Import (CAI) Under the NGVPPT” (April 2, 2004)
Executive Order 396 “Reducing the Rates on CNG Vehicles and NGV Industry-Related Equipment” (December 31, 2004)
Department Circular No. 2005-07-006 Directing the |Enhance Implementation of the NGVPPT and the Development of compressed Natural Gas (CNG) Supply and Infrastructure. (July 5, 2005)
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Natural Gas Program)(Natural Gas Program)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
Attractive CNG price substantially lower than the pump price of diesel (P 14.52/diesel liter equivalent)
Zero percent (0%) rate of duty
Income Tax Holiday
Preferential franchises
Manpower development and capability building through training and technology transfer
Affordable and commercially tenable financial package from GFIs
Accelerated issuance of ECC for NGV facilities and refueling stations
INCENTIVES
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Natural Gas Program)(Natural Gas Program)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
MARKET DEVELOPMENT
• Accreditation of 7 bus operators
- HM Transport, RRCG Transport, KL Transport, Pascual Liner, Greenstar Express, Biñan Bus Line, CNG Vehicles Corp.
• Delivery Schedule of CNG Buses
- 5 units (October 2005)
- 200 Units (Total by 1st quarter 2006)
• Target for 2007-2008
- 2,000 CNG buses, 10 CNG refueling stations
• Potential suppliers of CNG buses
Cummins Westport Asia, Daewoo, Ashok Leyland
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Natural Gas Program)(Natural Gas Program)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
Standards Development (48 sets of PNS promulgated on June 2003)
Road vehicles
Refueling Station
Gas Cylinders
Gas Quality
I E C Libreng Sakay Sa NGVs” and testing by bus operators (May 17, 2004 with 2,286 passengers)
Bus operators participation
Presentation of the first CNG Commercial Bus (July 1, 2005)
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Natural Gas Program)(Natural Gas Program)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
STEPS FORWARDS
Expansion of the NGVPPT implementation
Encourage more investments in CNG-related industry (CNG suplly infrastructure, NGV assembly/manufacture, etc.)
Formulate pricing mechanism for commercial phase
Enhance incentives and standards
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM
(Auto LPG)(Auto LPG)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
INCENTIVES
• Inclusion of autogas assembly facilities, conversion shops, refueling stations, and taxi fleet operations in BOI’s 2005 IPP
• DBP to finance acquisition of autogas vehicles through the “Clean Alternative Transport Fuel Financing Program”
STANDARDS
• Standards Technical Committees (TC6, TC44, TC- dispensing stations) drafted standards for autogas vehicles, autogas cylinders and autogas dispensing stations.
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM
(Auto LPG)(Auto LPG)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
SUPPLY INFRASTRUCTURE
• Petron Gasul
- 4 dispensing pumps in MM and Cebu - - Future installation: 10 dispensing stations w/in MM / Luzon
• Shell LPG
- 4 dispensing pumps in Cebu and 1 dispensing pump in Cagayan de Oro City
- - Future installation: 2 garage-based pumps
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM
(Auto LPG)(Auto LPG)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
MARKET DEVELOPMENT
• Metro Manila 110
- DBP28
- Freedom taxi
26 - Munich taxi
24 - ABC taxi 15 - Saigon taxi
10 - Basic taxi 2 - Alcotby taxi 2 - Avis
1 - AAP
1 - Ambi Energy 1
• Cebu258
-Corominas taxi 144 - Emersons transport 60 - Jays Express
44 - RP Corominas 10
• Cagayan de Oro 2
- Jays Express 2
ALTERNATIVE FUEL PROGRAM ALTERNATIVE FUEL PROGRAM (Auto LPG)(Auto LPG)
DEPARTMENT OF ENERGYDEPARTMENT OF ENERGY
STEPS FORWARD
• Public hearing and promulgation of autogas standards
• Consultations with autogas stakeholders
• Recommendation for policy action
• Information, education and communication (IEC)
Diesel Demand vs. Supply in MBCD
% ImportsYear Demand Production Imports to Demand2004 121.10 53.70 63.90 52.82003 118.30 78.70 38.10 32.22002 120.40 81.50 38.50 32.02001 118.10 92.80 24.60 20.82000 114.80 95.50 20.30 17.71999 115.40 100.00 12.10 10.5
Gasoline Demand vs. Supply in MBCD
% ImportsYear Demand Production Imports to Demand2004 68.00 34.40 33.10 48.72003 67.30 43.10 24.20 36.02002 66.00 45.90 17.60 26.72001 63.30 48.60 14.30 22.62000 62.40 47.30 13.90 22.31999 63.90 55.60 5.80 9.1
EMISSION EMISSION FUEL FUEL QUALITYQUALITY
ENGINE ENGINE DESIGNDESIGN
ENGINE ENGINE MAINTENANCMAINTENANC
EE
VEHICLE VEHICLE USEUSE
TRAFFIC TRAFFIC MANAGEMENMANAGEMEN
TT
……Fuel Quality is Only One Fuel Quality is Only One of the Factors Affecting Emissionsof the Factors Affecting Emissions