By Medoly M. Aguiba, Manila Bulletin via SEAMEO SEARCA Biotechnology Information Center

The corn sector can contribute to a national ethanol plan as the expansion of hybrid corn area at a conservation rate of 10 percent per year will produce by 2010 a corn surplus of 290,000 metric tons (MT) equivalent to 115 million liters of ethanol per year.

The Philippine Seed Industry Association (PSIA) indicated that this minimal expansion will already fill up any 11 percent increase in the country's corn demand for food, feed and other corn uses.

Corn is a good feedstock for ethanol per metric ton (MT) of corn while one MT of s ugarcane yields only 22.14 gallons of ethanol, and one MT of cassava, 44 gallons.

"Corn has high starch/carbohydrate content which makes it an effective source of ethanol. Corn has been proven to give better byproduct value called drained distillers grain," PSIA said.

The recommended corn ethanol production process is dry milling so as to produce the maximum of 109 gallons that will tap corn's 65 to 70 percent starch content.

This is against well milling which is more capital and energy intensive but produces only 98 gallons of ethanol for every one MT corn. Corn has 14 to 16 percent water, 10 to 12 percent fiber, and six to seven percent germ.

PSIA said that the presence of hybrid corn producers in the country will enable the Filipino farmers' fast expansion of corn areas as hybrid corn varieties produce five MT per hectare, more than double the two MT per hectare from open pollinated varieties.

And the expansion potential remains high since out of the 2.5 million hectare corn area in the country, only 625,000 hectares of 25 percent is planted to hybrid corn. This is far lower than Thailand which ahs a 95 percent corn hybridization rate.

PSIA stressed that for a corn ethanol production to be successful, government has to protect farmers on corn price.

"In the US, dry mill plants enjoy higher levels of profit with lower corn grain prices. In the Philippines, this scenario will discourage corn farmers which will have direct impact on corn production and supply availability," PSIA said.

Given a track record of growth for the last two years, the corn industry is capable of expanding with government's support for hybridization. From a 4.32 million MT yield in 2002, the country's corn output rose to 4.6 million MT in 2003 and further to 5.4 million MT in 2004.

The intensified interest in the Philippines' own production of ethanol was inspired by the spiraling cost of fuel as crude oil price hit beyond $60 per barrel level. The country can price-competitively produce ethanol at a crude oil price of less than $50 per barrel.

Aside from immediately cutting oil imports by 10 percent (maximum blend that doest not require vehicle engine upgrading), ethanol is an environment friendly fuel. It cuts compounds (VOC) emission by 12 percent, toxic emissions by 30 percent, and particulate matter emissions by more than 25 percent.

The Philippines is projected to require 25 ethanol plants with a 100,000-liter capacity costing P1.5 billion each to meet projected demand.

It is estimated that the Philippines needs 161 million liters of fuel ethanol at a five percent blend by (another ethanol feedstock) sugarcane by 2007-2008 and 169 million liters, crop year ending 2009.