Lets Go Ethanol

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Lets Go Ethanol

• Shiva Mehrabi
• Philippine Fuel Ethanol Alliance
• Regional Research Utilization and Technology
  Symposium on Energy
• October 26, 2006
• Pearlmont Hotel, Cagayan de Oro City

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What is ethanol?

• Ethanol is a clear, colorless alcohol with
  characteristic odor. It has been made since
  ancient times by the fermentation of sugars and
  is distilled from farm products including
  sugarcane, wheat, corn, rice, and cassava.
• It is the same alcohol contained in beverages

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What is ethanol?

• HYDROUS
• Hydrous ethanol contains about five percent
  water, hence the term "hydrous (water-containing)
  alcohol. This is used as a pure fuel for vehicles
  with modified engines.

• ANHYDROUS
• Anhydrous grades of alcohol are always below 0.3
  water. Anhydrous ethanol can be used as an
  additive to gasoline, creating gasohol.

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Ethanol as Biofuel

• Ethanol is increasingly used as fuel blend with
  gasoline to enhance octane rating and reduce
  emissions of toxic substances
• A higher octane rating prevents engine (knock)
  under load and ethanol is 16 points higher on the
  research octane scale than premium gasoline
• Can also be used as 100 or neat fuel in modified
  engines

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Ethanol as Biofuel

• It is safe, non-polluting, non-toxic and has
  lower volatility compared to gasoline
• Compared to gasoline that produces carbon
  monoxide, lead, sulfur, and other noxious
  materials, fuel ethanol burns much cleaner.
• Provides superior engine performance by
  preventing engine deposits
• Ethanol keeps fuel system clean for optimal
  performance by preventing accumulation of gummy
  deposits

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Ethanol in the Past

• One of the first fuels used in automobile engines
• The first practical internal combustion engine
  ran on alcohol. The Model A Ford, produced from
  1928 to 1931, was designed to burn a variety of
  fuels, alcohol being one of them.
• At the start of the motorized era, fuel
  ethanol was more prevalent than fossil fuels
• However, fuel ethanol was replaced by cheaper and
  more abundant petroleum supplies during the
  post-war period

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Ethanol in the Past

• Re-emerged in the 1970s amid declining oil
  supplies
• Laws were passed to promote ethanol as fuel.
• Became an important alternative fuel due to
  growing environmental concern
• As the US began to phase out lead in gasoline,
  ethanol became an attractive alternative octane
  booster for gasoline. By 1986 no lead was to be
  allowed in motor gasoline.
• At present, at least 12 countries are using
  ethanol either as pure fuel or blended with
  gasoline

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The Ethanol Market
ECONOMY
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E is for Economy

• The Philippines stands to save 5 to 10 of its
  total gasoline consumption and imports (dollar
  savings) when a policy of phased ethanol blending
  is implemented
• Total savings in foreign exchange of US825 M
  over ten years or US82 M annually due to
  reduction of fuel imports.
• The production of bioethanol will spark capital
  investment, job creation, and economic
  development in the Philippines, especially in the
  countryside

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Projected Volume of 5 and 10 Replacement by
Ethanol
10 Blend
5 Blend
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Potential Sugarcane Areas for Ethanol
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Indicative Return on Investment of Fuel Ethanol
Production
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E is for Employment

• The whole industry will employ a total of 87,000
  people in both the agriculture and manufacturing
  sector, greatly benefiting people in areas where
  ethanol plants will be established.
• When sugarcane is used as feedstock, the ethanol
  plants should be located in former cane lands,
  which no longer have viable mills or new areas
  where only cogon or very low value and highly
  seasonal crops are grown.

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Projected Employment Generation
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E is for Environment

• Ethanol has nearly-complete combustion, wherein
  very little carbon monoxide is produced
• Ethanol does not contain contaminants commonly
  found in gasoline such as sulfur, benzene and
  other aromatics, thus lowering particulate
  emissions

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Perspectives

• An ethanol industry will not flourish and be
  futile if the government does not mandate a
  minimum blend
• The mandate and incentives shall drive
  investments into the countryside
• Pushing for the development of an ethanol
  industry should not encroach on existing sugar
  industry instead, it should create more
  opportunities for farmers to diversify their
  products

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Perspectives

• Sugar industry has become a sugarcane industry,
  suggesting that the crop is a viable source, not
  only for food, but for energy as well
• The sugar industrys paramount concern is
  ensuring that domestic and international
  commitments are met
• The countrys ethanol requirements both at 5
  and 10 -- can be satisfied through improved
  productivity and area expansion

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What needs to be done?

• Push for Immediate Passage of Biofuels Bill
• Continue the Ongoing Information Campaign on
  Using Biofuels
• Patronize Available Supply of Biofuels-Blended
  Gasoline from Service Stations

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• Thank You!