The Alternative Fuels Group (AFC) of the Philippine National Oil Company (PNOC) is considering the introduction of biodiesel derived from algae next year. Peter Anthony Abaya, CEO of the PNOC-AFC says that the development and eventual commercialization of next generation of biofuels of part of PNOC-AFC’s medium-term development plan. Algae is said to be one of the promising “next generation biofuels”. Planned talks are underway with a pioneering U.S. ecotechnological company engaged in algae-to-biodiesel technology. (The name of the company was not named).

Algae is efficient in sequestering carbon dioxide from the atmosphere, and its propagation is said to be simple and fast. The costs of production of algae-derived biodiesel are also said to be potentially lower. Data from a test facility showed that algae could produce between 1,600 to 2,000 tons of oil per hecatare in one year. In contrast, yields of Jatropha and Palm oils are only 3 tons per hectare and 6 tons per hectare, respectively. Calculations estimate a cost $25 per ton of oil from algae, which is only about 5% the cost of obtaining oil from one hectare of palm. The spent algae from oil processing could also be used as animal feed or soil fertilizer.



Abaya said that he would go back to the U.S. in a month or so, to possibly close a deal on the technology..