Value Addition and Prospects of Bioethanol Production from Sugarcane in the Philippines

Abstract

The overall vision of the Philippine government is the reduced dependence on imported energy through environmentally desirable options such as the use of bioethanol. Sugarcane is considered to be tested and ready for bioethanol production. This paper presents the value addition from sugarcane production to processing into bioethanol as well as the prospects of the bioethanol industry in the Philippines. The total value added for the industry is the summation of all the value added in each enterprise such as personnel remuneration or the wages paid, taxes and duties earned by the government from the enterprises, depreciation and interest on investments, and the entrepreneur's net profit. Total value added (including the profits generated out of the by-products) of bioethanol production amounted to PhP82,716.79 (US$1,879.93)/ha production of sugarcane processed into bioethanol. Bioethanol production showed optimistic results in terms of employment created and government income through taxes. The total number of man-days required in the whole process from sugarcane production to ethanol production summed up to 130 man-day/ha/year. Tax revenues were estimated at PhP2,277 (US$51.76)/ha/ year. The bioethanol industry has great potential of contributing to the reduction of the country's dependence on imported fossil fuel with due regard to the protection of public health and the environment, at the same time providing opportunities for livelihood for poverty alleviation and sustainable economic development and energy security.