Biofuel production and usage should be encouraged by protecting local (foreign and local domestic producers) producers.Ethanol producers press for tariff protection
By Donnabelle L. Gatdula
(The Philippine Star)
Updated November 02, 2009 12:00 AM
MANILA, [COLOR=blue ! important][COLOR=blue ! important]Philippines[/COLOR][/COLOR] – A group of ethanol producers are calling for the increase in tariff for ethanol from one percent to 20 percent to encourage investors to put up more ethanol [COLOR=blue ! important][COLOR=blue ! important]plants[/COLOR][/COLOR] and meet the mandated five percent enthanol blend mandated under Biofuels Law.
“Unless there is strong [COLOR=blue ! important][COLOR=blue ! important]government[/COLOR][/COLOR] support, investors will remain reluctant to commit billions of pesos into the Philippine ethanol industry,” the Ethanol Producers Association of the Philippines (EPAP) in a petition to the Tariff Commission said.
In the letter sent by EPAP to chairman Edgardo Abon of the Tariff Commission, executive director Tetchi Cruz-Capellan explained how the local ethanol industry has not progressed much as predicted two years ago because it lacks equity investments and a stronger political support.
Capellan pointed out that the Philippines has to be aggressive in atttracting foreign capital to sustain initial efforts on biofuels and reach the mandated E10 blend by 2011. “In other ASEAN countries, particularly Indonesia,” she said, “ethanol producers are given as much as 30-percent protection from imports.”Without such support mechanism in place, EPAP believes foreign capital will bypass the Philippines and seek countries with more favorable investment climate and stable domestic market.”
In a [COLOR=blue ! important][COLOR=blue ! important]study[/COLOR][/COLOR]undertaken by USAID-funded Eco-Asia Project, the Philippines was cited as having the potential to produce as much as 1.7 billion liters of ethanol. “Obviously, foreign capital is the only missing ingredient to transform this huge potential into reality since the cost of building ethanol plants requires massive capital expenditures,“ said Capellan.
There are two more ethanol plants - Green Futures Innovation and Alto Power – waiting to be built in 2010. EPAP believes these two plants are key to the country’s full compliance to the five percent mandated blend by 2011.
Presently, a substantial portion of the capital for these two plants is being raised by the private sector. But still, government support is essential to cement the strategic partnership with foreign partners.
“An increase in import duties,” said Capellan, “not further reduction of tariff, gives foreign investors more confidence in the Philippines. Protection will accelerate [COLOR=blue ! important][COLOR=blue ! important]construction[/COLOR][/COLOR] of more ethanol plants.”
Thailand and Indonesia begun their respective ethanol programs at about the same time the Philippines enacted the Biofuels Law. According to the Food and Agriculture Organization (FAO), Thailand ethanol production rose as much as 30 percent, or 176 million liters, with output growing from 408 million liters in 2008 to 584 million liters this year.
Likewise, production in Indonesia is also expected to reach thrice its present output, from 212 million liters in 2009 to 660 million liters by 2010.
EPAP pointed out the dramatic rise of ethanol production in these countries is largely attributed to investors’ confidence on government support of these countries to ethanol their producers.
Local protection will also provide more jobs and income for small farmers as alternative source of income.
How can you promote increased biofuels usage when the majority of the gasoline engines on the streets cannot use E10 gasoline?
We cannot even get a proper agri-base for out farmer when they were growing food crops, would you think growing unproven "alternative" crops would do any better?Local protection will also provide more jobs and income for small farmers as alternative source of income.
IMHO, increased push to further biofuels production in agriculture will lead to increased food prices as observed in more developed countries.
Actually... the companies who export them from Japan sell them dirt cheap. It's the local companies who do the conversions and resale who make a windfall of profit.
That said... yes, the government should take a stand on imported vehicles... either they say yes or they say no... not waffle in between and allow wholesale importation, conversion and sale of potentially unsafe converted vehicles to the general public. Or at least enforce roadworthiness laws to dissuade the public from buying these things.
Arrest all sellers of imported used goods, though? Why not arrest all sellers of any used goods... since used, flooded cars and appliances are a hazard to buyers? Or arrest all sellers of any imported goods... have them shot in Luneta for being traitors to the country? Business is business... if it's legal to do, and earns money, people will do it. Besides... it's not the imported used items that are hurting our local manufacturers. People who buy used will still buy used, whether it comes from Japan or is local surplus.
No... what hurts local manufacturers is our inability to compete with the Chinese on a price-to-price basis. And without effective local quality certifications and standards, we cannot bar the cheapest of these Chinese products from being sold in the Philippines.
Ang pagbalik ng comeback...
So prohibit these local companies in importing and throwing garbage from Japan to the Philippines. (ex. there is already existing laws on this)
Yes. But, the government stand is clear. There is already a law against the importation of used vehicles. Toyota Philippines and Ford Philippines should be lauded for spearheading the drive against them. Luckily, in our province alone, its rare to see now, dealers selling used vehicles from Japan and Korea.That said... yes, the government should take a stand on imported vehicles... either they say yes or they say no... not waffle in between and allow wholesale importation, conversion and sale of potentially unsafe converted vehicles to the general public. Or at least enforce roadworthiness laws to dissuade the public from buying these things.
Yes. especially those covered by existing laws (E.O. against selling smuggled used vehicles from Subic, used clothes intended to charitable institutions and yet ends up in ukay-ukays.Arrest all sellers of imported used goods, though?
A new law to cover all imported used products including TVs, washing machines etc..
Local goods?Why not arrest all sellers of any used goods... since used, flooded cars and appliances are a hazard to buyers?
If local goods, its extremely rare to see shops selling used local appliances.
For local cars that were flooded, why?
Now, even when these flooded vehicles were already fixed and fully restored?How can you arrest persons selling their still working used belongings to their neighbor (Im referring to goods made here in the country). I think its recycling and good for the environment.
My point here is, the government should stop the entry of potentially hazardous foreign garbage (aka used goods) into our country to protect our environment, local industries and jobs.
Hmmm...tell me more about this... suggestion of yours.Or arrest all sellers of any imported goods... have them shot in Luneta for being traitors to the country?
Thats why in my previous post Im suggesting that the government make it illegal (not all are legal). Especially those hazardous and dangerous foreign garbages (used items)Business is business... if it's legal to do, and earns money, people will do it. Besides... it's not the imported used items that are hurting our local manufacturers. People who buy used will still buy used, whether it comes from Japan or is local surplus.
My issue here is, why will the Philippine government allow our country to be flooded by foreign junks? why should we recycle foreign garbage instead of recycling and cleaning our own backyard? why should we allow foreigners to earn from Pinoys by selling there garbage (ironic because Japan is richer than us)? why aloow foreign companies destroy our local industries and eliminate local jobs like what those coffins from Subic have done to our local auto assembly here?
No, This is another story. Chinese goods are brand new but dirt cheap. Of course they can be hazardous also.No... what hurts local manufacturers is our inability to compete with the Chinese on a price-to-price basis. And without effective local quality certifications and standards, we cannot bar the cheapest of these Chinese products from being sold in the Philippines.
Very simple answer, our power cost and labor are higher compared to Communist China's power and labor costs. Another one, they impose protectionist policies like export subsidies to make their exports alot cheaper.
We have local quality certifications and standards (ICC mark for foreign goods; BPS for locally made), problem is implementation of the law.
Last edited by jpdm; November 3rd, 2009 at 09:02 AM.
Actually, that's the rub. The problem is we don't have the teeth. In a country where schools can operate without licenses... businesses can sell without paying taxes... smuggling and importation of defective goods is a given.
See... my problem is not that there is importation of used goods from overseas... what is problematic is that these are not properly taxed and certified for resale. Simply apply the proper taxes (say... tax a secondhand bicycle according to the taxes it would be assessed if brand new...) and force resellers to have all such items safety-certified, and sales would either dry up or the price of secondhand Japanese units would reach a point where people would think twice about buying an import over a local secondhand.
Besides... in my opinion and that of some other analysts... it's a red herring... secondhand car sales do NOT affect the sale of brand new vehicles... just the sale of local secondhand units. What is needed to stimulate sales of new units is lower taxes on new units and higher registration requirements and stricter inspections of old units.
Not all secondhand Japanese units are garbage. Which is why importation is so profitable. The Japanese throw away relatively good cars with low mileage due to the restrictive cost of re-registering them after 3, 5 and 7 years. If you look online, the prices from the resellers in Japan are astonishingly low. The business is lucrative here because our local taxes on new units make our secondhand unit prices ridiculously high, by Japanese standards.
But... I believe that restricting the importation is good in the sense that it prevents backyard conversions from hitting our streets. The problem at the moment is just the importation, anymore, of these converted Japanese vehicles... it's that there are so many on the road, and the government has no specific program to ensure the roadworthiness of these units.
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C'mon... shot, at Luneta, at dawn? Would do wonders to dissuade smuggling.![]()
Ang pagbalik ng comeback...
The government should work with the private secotr to reduce if not eliminate smuggling. (although its impossible now because of a stupid and inept guy name Custom Commisioner Morales. Even the head of the Presidential anti-smuggling group and the private sector (FPI)want this dumb guy out of BOC) they should be banned.Japan should deal with their own junks.
Japan and other countries were already given the privilege of exporting their products here with almost no tariff (at the detriment of local industries. anyway thats another story)and yet they are still allowed to sell their junks and garbage here?
I thought the LTO has stopped allowing junks from japan to register. Even Cebu rebuilders of surplus minivans and elfs are now being hit by LTO and other government agencies.
Yung mga smuggled lang mula sa Cagayan (Poro point) ang malakas (vehicles with plate starting Y), mukhang suportado ng malakas sa Malakanyang (clue, puede yung nangbugbog ng asawa o yung super trapo sa Senado na matanda na)
Anyway, the government, and Im hoping in 2010, full and strict implementation of laws prohibiting junks and garbage from other countries to come into our shores.
Native assemblers and dealers of local cars (AUVs, owner type jeeps, other locally fabricated vehicles and local used cars. glaring example Cavite, 9 of 10 major and largest fabricator in Cavite closed shop) were severely affected. Although again good news, as of today, very few are selling these used junks.Besides... in my opinion and that of some other analysts... it's a red herring... secondhand car sales do NOT affect the sale of brand new vehicles... just the sale of local secondhand units. What is needed to stimulate sales of new units is lower taxes on new units and higher registration requirements and stricter inspections of old units.
Per se, these are Japanese junks. So why should we buy these and pollute our air. Why not just give local assemblers run by the Japanese to produce or assemble brand new cars or vehicle here. A bit expensive but would redound to more local employment and better environment.Not all secondhand Japanese units are garbage. Which is why importation is so profitable. The Japanese throw away relatively good cars with low mileage due to the restrictive cost of re-registering them after 3, 5 and 7 years.
Yes, because per se, they are junk in Japan. The Japanese are prohibited to used them there so they have to ship it here in the Philippines. Win-win solution for them-they get to export their junk, they earn from their junk and their car companies will still run and produce more new vehicles and more cleaner environemnt for them. Awin-win slolution for them but a losing proposition for us Pinoy junk traders and consumers.If you look online, the prices from the resellers in Japan are astonishingly low. The business is lucrative here because our local taxes on new units make our secondhand unit prices ridiculously high, by Japanese standards.
Indeed.But... I believe that restricting the importation is good in the sense that it prevents backyard conversions from hitting our streets. The problem at the moment is just the importation, anymore, of these converted Japanese vehicles... it's that there are so many on the road, and the government has no specific program to ensure the roadworthiness of these units.
These junks are dangerous and will bring more pollution to our country.
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If you are talking about dissuading smuggling, I agree.C'mon... shot, at Luneta, at dawn? Would do wonders to dissuade smuggling.![]()
Last edited by jpdm; November 3rd, 2009 at 10:28 AM.
Reality check guys.
Why is it these "junk" sells? Perhaps this is the bottom line of the issue. If there are no buyers, there definitely would be no sellers and thus no smuggling.
Do we have alternatives to fill in the demand? What is the demand? What are the factors involved on why there is such a demand? Can filling in the demand locally produced possible?
First is must define parameters of the battle field.
Added to this, as in the case of jatropha water usage compared to actual benefit from fuel extracted makes using jatroph not worth using as biofuels besides what ghosthunter mentions of increased food prices and the destruction of arable soil as jatropha production showed is almost ast soil nutrient erroding as gemelina.
Corn production for fuel would go directly against corn use for food directly and/or as feeds for livestock.
Seems integrated organic farming that recycles all waste may help with waste from animal manure used as fuel source to producing methane that can be converted into electricity.
Sugarcane alcohol naman will directly compete withour drinking habits kaya gudbye na sa sa kasayahan sa tomaan. He he, hirap masyadong serioyoso.
Well... it would give those bums one less reason to stay home or on the street drinking, so they can actually go out and find work instead of relying on their wives and kids...
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*jpdm: It hurts native assemblers, yes... but the vehicles covered by the ban are not the type of vehicles competing with natively-assembled jeeps, which are used for business.
In fact, trucks used for business are exempt from the law... as are buses. That hurts local assemblers and fabricators for bus bodies.
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And, in terms of environment... a secondhand Japanese car of five years of age is better, emissions wise, than a locally assembled car with that same secondhand Japanese engine, but without the emissions devices attached to the exhaust. They're not junk. Which is why they sell. The big loophole in importation of these old cars is that they are not properly taxed... if they were assessed taxes equivalent to bringing in brand new Japanese cars, and conversions not using OEM-spec left-hand drive equipment were outlawed, then the market for cheap, un-roadworthy imports would dry up completely... though still leave room for those who want to import specialized vehicles which are not available locally for use in business... without leaving loopholes in the law big enough to drive an 18-wheeler through.
Ang pagbalik ng comeback...
what about sorghum? imho it's a bit more flexible than jatropha: primarily used for alcohol production(i.e. beer), molasses. i've heard of at least one venture that's banking on sorghum for ethanol.
I agree with you on sorghum. the grain can be made into flour to help lessen our dependence on imported wheat (at least even for making noodles; not so good daw for breads and pastries) and the stalks is what can be turned into ethanol. Kaya lang after three harvesting of grain pa since one planting is good up to three harvestings of this food crop.
Can't recall where I read about sorghum waste being turned to alcohol. Will try to dig it up on my files if htat's where it is and not on a discovery channel fil feature.
Having problems with setting on mozilla that can't simultaneously access my accounts to look things up. Will get back to you when I have it.
Am afraid to log off tsikot to lose the setting. often times have difficulty getting into tsikot.
don't know what's causing all these hassles.
Will info when I get to check my files in my accounts
E-jeepneys can source power from this powerplants.
Tidal current: Harnessing new frontier in electricity generation
By MYRNA M. VELASCO
December 21, 2009, 5:57pm
Manila Bulletin
The pilot 1.0-MW Uldolmok tidal current power plant project.
SEOUL, South Korea – With trepidation over climate change risks, the charted path toward the world’s energy future conjures shift to cleaner energy options - and it invariably factors in renewable energy (RE) into the equation.
Various countries gear up for multi-speed races into turning their energy sector as green as possible, but the envisioned precipice of fossil fuels in the mix appeared harder-to- achieve than imagined.
Energy planners are, by far, not politically naïve at realities that the development of RE sources would still take long lead time, hence, they can’t thrive as solution to short- or even medium-term energy demand.
Even with all that incentive-stuffing in RE policy frameworks, investment flows in the sector remain negligible. Suffice it to say that despite ‘loud talks’ about greenish energy, its sway in the investment domain relatively appears a bare whisper.
Nevertheless, there are countries willing to place their bets on RE – it being considered the inescapable option of the future. Raising hopes on an eventual rapprochement of energy and the environment, the coal-fired and nuclear power-laden South Korean energy market couldn’t be left behind in the coterie of countries embracing the RE investment trajectory.
Exploiting a largely-untapped potential
Technology experiments and project takeoff from drawing boards are evidently widespread for traditional RE sources – from geothermal to hydro, and even wind and solar which are already gaining allure among project sponsors.
In the roster of RE sources though, there is one resource considered largely untapped until now – tidal current (also interchangeably referred to as tidal power) -- perhaps due to technological limitation or high capital cost.
Tidal energy basically involves a process wherein tides are converted into electricity – propelled mainly by interaction of gravitational forces.
In the so-called ‘Land of the Morning Calm,’ Korea East-West Power Co. Ltd. (EWP) jumpstarted technology experiments on tidal energy via its helical-type 1.0-megawatt power project along Uldolmok Strait in Dunjeon-ri Gunnae-myeon Jindo-gun Jeollanam-do.
EWP president Gil Gu Lee acknowledged that tidal power projects remain relatively expensive to this date. In fact, his company’s Uldolmok pilot undertaking costs $12 million for the measly one-megawatt capacity – comparatively a hefty sum vis-à-vis investments needed for fossil fuel plants or other energy sources.
“It is very expensive. Without any subsidy, it (tidal power) cannot be economically viable. For the experimental 1.0 MW plant we have, we invested $12 million,” he said.
But Mr. Lee expects economy of scale when they can eventually prove the technology’s viability and would be able to increase EWP’s tidal power capacity to 50 megawatts – in the near future.
As the company sprints ahead in establishing its investment base in the Philippines, EWP’s experience on tidal current technology is something it is very much willing to share with the Philippines when the opportunity for synergy or investment arises.
“The Philippines could be an ideal site for developing tidal power, it has very many straits that are potential for development,” the EWP chief executive said.
The function of technology
The Uldolmok tidal energy experiment, Mr Lee proudly claims, is a technology showcase for his country, albeit he cautioned that it is still at its ‘infancy.’ To position it as a clear winner in the field or even bring it to commercial scale is still a formidable challenge that the company has to reckon with.
The technology application employed in the project was set into fore with aid from the research center of South Korea’s Marine Department. It entails construction of jacket-type structure on-land which was then fixed onto a rock bed in the water that is linked to a power generation facility.
It was explained that the Uldolmok project employs tidal stream generator which no longer needs a dam in processing tidal currents to produce electric power. This then makes the technology more eco-friendly, primarily to marine life.
“The Uldolmok pilot project holds the promise to become one of the largest projects of its type in the world and one that may utilize most advanced technologies in the field,” the company noted.
Overall prospects on RE’s future
Nowadays, news on the energy front is dominated by ‘green option tinge’ – especially with the on-going Copenhagen debates that may crystallize a new global climate change treaty.
The fanfare over clean energy and environment-friendly technology applications appears endless that many countries have already been prompted to formalize, and in many cases even set through legislation, their respective RE and ‘clean tech’ policy agendas.
The Philippines was among those that joined the global ‘green energy bandwagon.’ The passage of its Renewable Energy Law has drawn cheers, and it became an instant attention-drawer for project prospects long-desired by both local and foreign investors.
“The Philippines provides attractive incentives, especially for renewable energy. If we have opportunities, we will look with utmost priority at the Philippines,” Mr. Lee said.
The planned investment tie-up for wind farm projects, and may also eventually cover mini-hydro projects, with local firm Alternergy Philippines Holdings Corporation is just the starting point, the Korean firm assures.
Asked on probabilities that the RE investment pathway of the Philippines may disappoint, Mr. Lee opined there was nary a chance for failure if policies are set right and implemented efficiently.
He noted though that RE as an option may be a realization 10 years or more down the road. Yet while traversing the transition phase, Mr. Lee noted it is crucial that the policies such as the propounded feed-in-tariff (FiT), net metering, renewable portfolio standard (RPS) and the measures on integration of intermittent RE sources into the grid be dealt with resolutely to ensure unremitting investment influx for the sector.
That way, the bid for realistic competitive pricing for RE sources will thrive and the pernicious dilemma of toxic emissions from energy sources can be truly addressed.
I high appreciate this post. It’s hard to find the good from the bad sometimes, but I think you’ve nailed it! would you mind updating your blog with more information?
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There is an even more simpler solution than Singhs' apprauch.
It is Rons Groving... this means growing the throttle body after the butterfly.
But after trying it myself, and sharing the experience and input with my friend Mr. X... a better way came up.
Utilizing sacred geometries... a more simpler, less components, lesser points of failure, cheaper and easier to install solution was made.
Without removing any of your carb or throttle or engine heads... will post more on this soon... it's too early now.