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Thursday, March 04, 2004
New order expected to revive coco industry
By Christie Enriquez-Uayan
MORE than two million farmers and their families will benefit from the newly signed memorandum order mandating the use of one percent coconut methyl ester (CME) for government diesel vehicles, according to Energy Undersecretary Eduardo Mañalac on Wednesday.
"We will be able to help coconut farmers and about 25 million people who depend on the coco sector for their livelihood by spurring demand for products derived from coconut such as CME," Mañalac said on the sidelines of the consultation for the implementing rules and regulations of the order held in Davao City.
Coconut methyl ester or CME is derived from trans-esterification of coconut oil in the presence of methanol and catalyst such as caustic soda.
It may be used as an alternative or substitute for petroleum diesel, Ma¤alac explained.
MC 55 mandates "all departments, bureaus, offices, and instrumentalities of the government, including government owned and controlled corporations to use 1 percent CME by volume as blend in petroleum diesel fuel".
A five percent optimum blend was first proposed, but because the project is still in the introductory phase, the government decided to lower the blend.
Mañala said that by gradually using CME as an additive and in thefuture as an alternative to petroleum diesel, the government would no longer be too dependent on importation.
He said about 350,000 barrels of fuel oil is being used in various applications nationwide, and most of the country's fuel requirements are sourced outside the country because Philippines has no capacity to produce these.
"We in the DoE (Department of Energy) have always been looking for ways to help assuage consumers' fear amid increasing price of oil in the world market and we hope that with this, we can help lower down enery costs," Mañalac said, adding that if the project becomes a success in the government level, it might be undertaken to include all of the vehicles, plants and other industries using petroleum oil.
DoE, he said, is currently collating reports from various government agencies to determine the total requirement for CME.
Coco farmers, processors, and the Philippine Coconut Authority (PCA) have assured of adequate supply even before the signing of the order on Feb. 9.
CME is sold at around P50 to P60 per liter in the market.
Once sold commercially, the price of one percent CME-blended diesel will likely be pegged at 40 to 60 centavos higher than the ordinary diesel price, Mañalac said.
Mañalac said the use of CME blended diesel will lower down the emission of environmental pollutants and increase the mileage of vehicles.
At one percent blend, a reduction of almost 65 percent in smoke emission was felt based on studies, he said.
(March 4, 2004 issue)
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