Coconut Methyl Ester as an Alternative Fuel[1]
E.V. Carandang[2]
INTRODUCTION
W
hen I was invited to speak before you by the Society for the Advancement of Technology Management in the Philippines (SATMP) to discuss the recent developments and issues on the use of alternative fuels in the Philippines, I accepted the invitation with some hesitation knowing full well I will be facing technology experts.
As I made my decision, I thought I would provide some insights on the coconut industry having had experience in the past 15 years experience in the industry working not only with coconut oil but with coconut methyl ester production and its use as an alternative fuel to petroleum diesel.
I was informed to limit my discussion in the next 15 to 20 minutes to the following:
· state of research on Coconut Methyl Ester (CME) in the Philippines
· anticipated problems/issues on the adoption of the CME technology
· appraisal of efforts of government agencies and/or private sector to promote CME
· suggested measures to accelerate mass adoption of CME
Before proceeding to the main topic, please allow me to give you some background on the coconut industry.
The present economic condition continues to adversely affect the withering coconut industry. During the last 18 months, copra prices traded at the lowest price in many years in March 2001. It has since very slowly recovered. There was a time when coconut farmers would not even harvest their copra because prices were not remunerative. At present, a kilo of copra could not provide a farmer with a kilo of rice. Based on the consumers’ price index, a kilo of copra should have a purchasing power of P 25. Its current value at farm gate, however, is only less than P 5.00. Looking for a profitable alternative, farmers have found a new business in coco lumber that provides outright income which copra could give them in 10 to 15 years.
In the global context, the outlook is not any brighter either. America and Europe, our largest or major markets, will not eliminate their trade distorting farm subsidies which give their farmers an edge over their third world counterparts. The European Union has allotted $20 billion oilseeds subsidy, enabling it to pay farmers better even with prevailing low farm prices to stockpile production and to sell at a loss. When they drop their prices, other oils follow creating a distortion that has placed the price of coconut oil at unremunerative levels.
Canola, a new variety of rapeseed developed through biotechnology which is high in both oleic and stearic fatty acids is now commercially planted and marketed. Still, biotechnology has gone further in a later work by Calgene that has genetically altered rapeseed to “mimic” coconut oil’s high laurate property. In a few years, when Calgene’s high-laurate rapeseed variety becomes available in the world market, coconut oil could be tossed off the competition.
Coconut is the only agricultural crop and the only 100% Filipino product among the top five dollar earners of the country. Total land area in the country planted with coconut is estimated at 3.10M hectares. Land utilized for coconut planting in year 2000 stood at 31.73% of total agricultural area; production represented 18.35% of total crops harvested; and with value representing 8.91% of aggregate. Coconut exports bring in US $600 M to more than US $1 B a year. For many years, except for the last 18 months, coconut oil (CNO) which is the primary product of coconut enjoyed a premium price in the world fats and oils market.
The high demand for coconut oil is due to its high lauric fatty acid content, the base material used for detergent and cosmetic products. Of the total Philippine coconut oil production, 70% is exported, 80% of which is used for industrial application and the rest for food. However, coconut oil has always been a price taker. Since coconut oil is only 5.58% in 1998 to less than 5% in 2000 of the total world fats and oils market and with only a handful of big users, it is the world market that dictates the price of coconut oil here and abroad. Unlike soybean and palm oil which supply more than 60% of vegetable oils and fats trade, coconut oil is not traded in the commodity exchange. There are several factors that can influence the pricing of coconut oil but generally it all boils down to supply and demand.
Price forecast and past prices for coconut oil, Phil., CIF Rott. (US$/MT)
July/JuneFeb
Mar
Apr
May / 93/94
94/95
95/96
96/97
97/98
98/99
99/00
00/01
2001
2001
2001
2001 / 526
634
730
731
608
743
617
328
285
289
293
295
Source: Oil World 2001
Changes in political administration most often cause changes in policies. During the Marcos years, the industry started to go into the production of oleochemicals from just being copra exporter even when the industry was run by just a few individuals. The Aquino years were known for the deregulation and free market policy resulting to significant increase in processing capacity beyond what coconut production could supply. The Ramos years were committed to the adherence to the World Trade Organization (WHO) and AFTA, and to strengthening the small coconut farmer organizations, thus causing unprecedented increase in the number of coconut farmers from 1.2 million to more than 3 million. The Estrada years had the unsettled issue on the coconut levy fund and the maunlad program trying to maximize the use of the coconut land for other agricultural and marine projects to increase farmers’ income. The Arroyo administration is showing great interest in the development of the coconut industry by increasing domestic consumption and creating a million jobs. Several government agencies, especially those under the Office of the President, including private groups are being mobilized to think how to revitalize the coconut industry. They were asked to come out with recommendations to help the ailing coconut industry.
Causes of low prices for coconut oil
The free market policy sometimes results in a glut of CNO abroad. The uncontrollable sell and sell syndrome created huge inventories that even when we want to sell more; buyers already refused to buy. This surely brings down prices. This situation happened during the late 2000 when prices dropped substantially so that coconut farmers didn’t even bother and just left the nuts to fall on the ground. At times, even if inventory abroad is low, news of an increase in coconut production due to good weather still could pull down prices. There were times when news like government/industry plan to supply National Power Corporation (NPC) with coconut oil to be incorporated with bunker fuel created nervousness in the international market raising the price of coconut oil then. Low prices mean not only loss of dollars for the country, or less profit for the traders and manufacturers, but most of all losses in terms of coconut producer’s income.
OIL AND FATS: 1998 WORLD EXPORTS (% Share by commodity)
1998 / 20001. Palm oil
2. Soybean oil
3. Sunflower oil
4. Tallow and Greases
5. Rapeseed oil
6. Coconut oil
7. Palm Kernel oil
8. Corn oil
9. Butter
10. Olive oil
11. Fish oil
12. Casto Bean oil
13. Ground nut oil
14. Cottonseed oil
15. Lard
16. Linseed oil / 34.38
24.42
8.70
7.06
6.68
5.58
3.23
2.44
1.74
1.37
1.16
0.83
0.79
0.66
0.53
0.36 / 30.34 (2)
30.45 (1)
8.16 (4)
4.40 (5)
9.50 (3)
4.34 (6)
2.44 (7)
1.53 (10)
1.31 (11)
1.04 (12)
1.66 (8)
0.59 (15)
1.64 (9)
0.86 (13)
0.40 (16)
0.78 (14)
Source: UCAP Coconut Statistics 1998 and 2000.
Philippines search for alternative fuel using CME
* A big portion of the country’s dollar reserve is spent on rising costs of crude oil prices and petroleum;
* Fossil fuels are becoming scarce and every country is in desperate search of a renewable energy source;
* 70% of mineral oil deposits are located in politically unstable areas;
* Price of coconut oil in the world market is still depressed.
In search of these materials, several questions are being raised:
- will these materials be competitive enough technically and economically against petroleum based fuels?
- what can these substitutes offer that even the cheapest petroleum based fuels can not provide?
- will these alternative fuels create opportunity or are they necessity?
- can these alternative fuels answer the major issues and concerns such as environmental protection and ecological balance, cost, performance and availability of supply?
Studies conducted on the use of coconut methyl ester as biodiesel in the Philippines:
- In the 70s, the late Dr. Julian Banzon of UPLB already talked of converting coconut oil into methyl ester as fuel.
- 1983, ITDI started producing Coconut Methyl Ester and Coconut Ethyl Ester under laboratory condition.
- 1985, Bio-energy (Phil) Inc. demonstrated how to produce CME from coconut oil. They also reported the test conducted in Australia thru Bio-energy Australia Pty. Ltd. that CME is far superior as compared to rapeseed methyl ester (RME). 1986, Engr. Francisco Hernandez of PNOC-ERDC reported the results of their studies on the CME.
- 1991, Engr. Rodolfo Seredrica of PNOC-ERDC reported results on their study of CME as a diesel fuel extender. They run a 250-hour durability test for stationary engine using 30/70 blend. The extent of carbon deposits; lube oil contamination and effects of early and late injection timing were included in his report.
- The studies on passenger buses using 20/80 blends included their findings on the use of CME:
- performance comparable with diesel fuel
- noticeable reduction in power
- increase in fuel consumption
- low carbon deposits
- mineral wear noted after 250 hr
- no lube contamination
RP Coconut Oil Mills: Capacity Utilization (in ‘000 MT, Copra Terms)
Year / Annual rated capacity / Estimated copra crushed / Estimated capacity utilized (%)1966
1970
1975
1980
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000 / 1, 205
1, 205
1, 698
3, 325
3, 627
3, 638
4, 667
4, 784
4, 891
5, 063
5, 021
5, 021
5, 350
5, 321
5, 269
5, 069
4, 869
4, 943
5, 065
5, 187 / 777
640
1, 220
1, 737
1, 459
2, 519
2, 153
1, 700
1, 594
2, 294
1, 798
1, 852
2, 071
1, 862
2, 670
1, 808
2, 237
2, 369
1, 176
2, 132 / 64.5
62.4
71.8
52.2
40.2
69.2
46.1
35.5
32.6
45.3
35.8
36.9
38.7
35.0
50.7
35.7
45.9
47.9
23.2
41.1
Source: UCAP Coconut Industry Kit 2000.
- February 1990, Philippine Coconut Research and Development Foundation, Inc. (PCRDF) started using 100% CME (neat) as diesel substitute completing 100, 000 kilometer run. Results showed that in the ISUZU C240D diesel engine, 100% CME as fuel does not cause any engine trouble, no cavitations of injection pumps, and no engine wear and tear. As expected, fuel consumption using CME was higher by 12% to 15% depending on the load due to its low BTU as compared to diesel;
- March 1991 PCIERD of DOST coordinated the study implemented by the JVA Management Corp. through Davao Fruits, Hijo Plantation and Twin Rivers Plantation in Tagum, Davao del Norte with the UPCE, ITDI and Resin Inc. They made used of 20/80; 30/70; 50/50; 80/20; and 100% CME. The performance of CME was comparable with diesel fuel except for observed reduction in power and increase in fuel consumption as percentage of CME increased; the 50/50 blend was tested in 12 test vehicles from May 20 to June 30, 1991 and 6 vehicles using 100% CME from July 1 to August 31, 1991.
- 1995, Philippine Coconut Authority (PCA) piloted the CME produced using the “Cruzterification process”.
* 57, 943 km were run using brand new Light Commercial Vehicle Mitsu 4D56 diesel engine with 100% CME
* 18, 943 km with B40
- Late 90s, University of the Philippines at Los Baños (UPLB) did some R&D in the production of CME using CNO and used oil. No information if actual road test was conducted.
The common tests conducted were:
* number of hours or the number of km the test vehicle run
* fuel consumption
* lube oil analysis
* viscosity
* ash
* water content
* total base number
* fuel dilution
* pentane insoluble content
For the CME, the following tests were conducted
* heating value
* cetane index
* pour point
* specific gravity
* flash point
* viscosity
* corrosivity
* sulfur content
Biodiesel helps to solve three important problems
1. Protection of environment because it has a close carbon dioxide cycle and wide range of sustainable applications
2. Preservation of resources
3. Avoidance of over production (demand and supply management). Important since pricing of coconut oil is dictated by the world market based on the supply and demand level.
Missing information:
To further support the claim about the safety and usefulness of coconut methyl ester, there is a need to supply some pertinent information needed to assure its quality and safety. Aside from doing the life cycle analysis to determine the energy supply that CME can provide, there is a need to do studies on the detailed chemical characterization of exhaust emission among different engines. Also, other information needed are: