An Oligarchic Conspiracy is Behind High Fuel and Power Prices?
One reason given for the country’s lag in industrial growth is that power rates and fuel prices in the country are among the highest in the Asia Pacific Region.
Jane Subang, a former boss of mine during my days at the Office of the Secretary of the Department of Trade and Industry keyed me on a couple of reasons why this is so. Â One point that I remember quite well is that the cost of power generation and the cost of fuel importation do not determine the final cost of both electricity and fuel. Â The reasons for this seems vastly complex and are easily misunderstood by the common consumer.
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Just looking at your electric bill is enough of an indication of the circuitous processes involved in determining the cost of electricity.
It is somewhat confounding to figure out why, for example, despite being the second largest producer of geothermal energy in THE WORLD, we are still very much dependent on power sourced from imported coal and diesel. Â Another thing that boggles the mind is why we have to import as much as 75% of our coal needs when the country actually produces coal.
As an ordinary consumer, one would think that if coal prices go down, power rates should go down as well. Â But that hardly happens or if it does, it doesn’t happen in the way one would ordinarily expect it to — like a drastic reduction in your electricity bill.
The same observation can be made for the price of fuel. Â At times when sharp fuel price increases are announced, people point out such increases come too soon because landed fuel stocks in the country were acquired at a lower price. Â The argument is that when world fuel prices increase, oil companies immediately jack up prices quickly and when it goes down, it takes quite a while for fuel companies here to reduce their prices.
Anyway, we’ve all been through all these discussions before and I’m not in a position to make sense of these things, at least enough to really write about it.
However, some people in a number of online communities are inclind to blaming the Oligarchy, the Presidential System, the 60/40 limits on foreign capital ownership and not being a Federal system or the convenient bogeyman called “corporate greed”. Â These things have been argued and debated for so long, it’s just really a matter of sustaining the discussion with NEW approaches and treatments rather than coming up with really ORIGINAL ideas.
There is no denying that going against these causes for Philippine suckiness can make for good causes, some may even make a reputation out of being a self-proclaimed advocates of certain “solutions” related to dismantling the Oligarchy or making corporations less greedy.
However, as a solution to high fuel prices and power rates, some people espousing grand over-arching changes in the country’s political and economic system may be taking the unnecessarily long route.  Taking the grand anti-Oligarchy route, a whole interrelated caboodle of things have to happen first before you finally get what you want — which is a lower electric bill as well and a lower fuel price.  Or alternatively, higher personal incomes which will make it possible for people to afford high power and fuel costs.
I am certainly not against such grand schemes to counter the somewhat believable spectre of an Oligarchic conspiracy, it’s only that I tend to go for readily implementable ideas — ideas that directly answer the problem and can be immediately built or done.
Here’s how I see the problem: Cost of electricity and price of fuel is high as well as uncontrollable.
Here’s how I see the solution: Produce your own electricity and fuel.
A Nod to the Nuclear Option
Lorenzo “Obi” Abadinas started a very intriguing discussion on nuclear power at Get Real Philippines Community which has spun off into a discussion about alternative energy sources.
Abadinas seems to be opposed to nuclear power for a number of reasons and while I do not agree with them, most of what he said seems valid to me. Â One thing that he said which struck me as speculative but probable is this, “A nuclear meltdown due to incompetence, corruption or even an earthquake could never happen in the Philippines.”
This is something which I think Congressman Mark Cojuanco can rebut or refute, having talked with him about nuclear power before both off-line and on Twitter.  For those of you who may not be aware, Cong. Mark was the guy who proposed to revive the Bataan Nuclear Power Plant (BNPP) and the construction of additional nuclear power plants.  Nuclear energy, he asserts, may pave the way to lower power costs as well as help stem a projected lack in our country’s power supply in the coming years.
This idea of reviving the BNPP is something he shares with other legislators, another one being Senator Dick Gordon. Â My former boss mentioned the idea of using nuclear power some time in 2008 or 2009 at a time when the price of oil rose rather sharply and not too far behind it was the rise in the cost of power. Â He pointed out that one advantage to nuclear power is that its fuel (uranium) had remained stable over the past 5 decades.
But of course, one has to admit that nuclear power and the revival of the BNPP are topics that spark heated arguments here in the Philippines. Â Among the reasons I can point out is the recent Fukushima Daichi Nuclear Disaster and the fact that the BNPP is one of the most demonized Marcosian projects. Â Put together, arguing for nuclear power in the Philippines will be an excruciatingly tough task.
Like ending the Oligarchic Conspiracy, the nuclear power option is also something that I am not buying into at this point.
Waste To Energy, Particularly Waste Cooking Oil to Diesel
The thing with other renewable energy options is that they are costly. Wind-turbines, photo-voltaic (pv) solar panels, geothermal, and  wave require massive amounts of investment to these things up and running.  Moreover, there are also drawbacks to these technologies and given the price for developing these energy sources, it may not really result in a substantial reduction of price at the pump or meter.  But that’s not to say they aren’t any good, because they are — but it just doesn’t fit into my idea of a direct and immediately implementable solution.
One alternative energy solution that I favor for a number of reasons is Waste to Energy, particularly waste cooking oil and waste plastic to fuel. Â One reason is that the typical Filipino diet uses a lot of cooking oil and with the prevalence of fast food or fast serve outlets, there seems to be an endless supply of waste cooking oil. Â Waste cooking oil from fast-food outlets are usually sold as recycled cooking oil in wet markets at a fraction of the cost of new cooking oil or end up being dumped in drains and sewers, eventually running off into streams which causes massive water pollution.
Converting used cooking oil to diesel is a good idea on a number of accounts:
1. There is no need to grow feed stock, avoiding the food vs. fuel argument.
2. It keeps possibly carcinogenic used cooking oil from the market.
3. A high demand for waste cooking oil may keep food companies from dumping waste cooking oil in sewers.
4. Waste cooking oil diesel is actually cheaper than regular diesel.
Friends Ricky Cuenca, Gene Gregorio, Gerry Anderson, Henry Palacio, and JP Fenix have been slogging it on with a project which involves the large-scale conversion of waste cooking oil to diesel. Â These guys are behind the waste to fuel company called Eway54Â and after years, their persistence is now paying off.
Here’s an excerpt from a report on their progress:
A partnership between government and private sector will kick off a project that will test the viability of using esterified waste vegetable oil on diesel-run vehicles.
The Department of Energy, Department of Science and Technology, Department of Environment and Natural Resources, USAid, Jollibee, Seaoil and E-way54 have agreed to test four vehicles using diesel with 4% esterified waste vegetable oil within 6 months.
DENR and Seaoil will provide the vehicle and pumping station while Jollibee will supply the used oil coming from their various stores in Metro Manila.
Engineers involved in the project say in case its found out to be feasible, even used oil from households can be used as biodiesel blend for fossil diesel.
But Energy Secretary Jericho Petilla says before embarking on a national policy to encourage all households to save and collect their used oil, the study must first establish the viability and safety of the new source of biodiesel so that car owners will not be afraid to use it.
(Read the rest of the article here)
Another Waste to Energy Option: Converting Waste Plastic to Diesel
In addition to Waste Cooking Oil to Diesel, another alternative energy option I like is the conversion of plastic into diesel and it’s not as costly as one would think it is.
Jetijs on Energetic Forum says a bit about the cost of waste to energy devices:
Some Japanese companies manufacture such devices, but their prices for this size unit is more than 100 000$, our home made device cost us 900$ max.
Jetijs actually had a waste to plastic reactor made and this is what it looks like:
Jetjs says the fuel yield from the conversion of plastic is typically 95 liters diesel from 100 kilos of plastic. Â The plastic to diesel reactor uses electricity to heat up plastic and break it down into diesel and paraffin. Â Apart form the cost of building a reactor and the cost of plastic, the really major expense here is electricity — but this can be off-set by using some of the diesel converted from plastic to fuel a generator.
Here’s how Jetjs describes the waste plastic to diesel conversion:
The process is really simple, it is similar to how alcohol is made.
If you heat plastic waste in non oxygen environment, it will melt, but will not burn. After it has melted, it will start to boil and evaporate, you just need to put those vapors through a cooling pipe and when cooled the vapors will condense to a liquid and some of the vapors with shorter hydrocarbon lengths will remain as a gas.
The exit of the cooling pipe is then going through a bubbler containing water to capture the last liquid forms of fuel and leave only gas that is then burned.
If the cooling of the cooling tube is sufficient, there will be no fuel in the bubbler, but if not, the water will capture all the remaining fuel that will float above the water and can be poured off the water.
On the bottom of the cooling tube is a steel reservoir that collects all the liquid and it has a release valve on the bottom so that the liquid fuel can be poured out. Here are some pictures to better understand the design:
This device works on electricity (3 phase), it has six nichrome coils as heating elements and consumes a total of 6kW (1kW each coil). The coils are turned on and off by three solid state relays, one for each phase, the relays are controlled by a digital thermostat with a temperature sensor just a bit below the lid, so that the vapor temperature can be monitored.
You need to heat the plastic slowly to about 350 degrees and just wait till it does the magic. Our device has a capacity of 50 liters and can hold about 30 kg of shredded plastic. The process takes about 4 hours, but it can be shortened considerably by tweaking the design a bit.
We made calculations, it turns out that our device, as crude as it is with much room for improvement, can produce diesel fuel at a cost of 17 US cents a liter, that is when only plastic and electricity is considered.
If you want to read more about this, here’s the link to Jetjs’ entry in Energetic Forum.
Writer.
I think the used cooking Oil fuel will have its big potential the minute its viability as a fuel will be proven for typical usage of a common driver. This will save a lot of Pesos for those public transport drivers since they can obtain such alternative fuel sources at a MUCH cheaper price. But I highly doubt that this project will become a success because some of these “giant fuel providers” will resort to propaganda tactics just to demonize the practicability of recycling used Oil.
Even the Nuclear Power Plant issue, I will gladly have that for our country. The fact of having a Nuclear Meltdown is already there, given that the country lies on fault lines, but there are preventive measures to brace the Plant for some natural disasters. Sadly, da Pinoy people should really worry more about themselves running the Plant anyway.
But the coolest thing so far is the conversion of Plastic to Diesel. Now that’s science!
I have personally tried using waste cooking oil (vegetable oil) on my old diesel and it works very well (since diesel engines are originally designed to run on plant oil). The challenge is getting enough waste vegie oil as I have experienced talking to local fastfoods and found out that somebody have been contracted to buy and collect this waste vegie oil for recycling. Could it be that this are the same cooking oil you find for sale in markets and sari-sari stores contained in a gin (roundpost bottle). But if there is a way they can produce vegie oil at a cost even just a tad cheaper than diesel then that’s a start, i will be using this instead of buying it from the pumps.
Why did Eway54 involve the government? We know for a fact that Dept of Energy is useless with regards to lower fuel cost.
It is a fact that energy development takes years, and the absence of this for more than 2 decades led to BS Aquino trying to put up power plants in a hurry, diesel fed at that…what a lame decision for the country’s interest, good decision for the oligarchs.
Plastic to diesel is good idea…not. In this small project, 6 kw is needed run it. Run it for 1 hour and you consume 6 kw-hr. At Meralco rate of say Php 11.00 per kw-hr that would be Php 66.oo to run it for 1 hour. How many liters of fuel would be produced in 1 hour? I doubt it would be liter. Even if they produced a liter, Php 66.00 is still expensive. It is good though of getting rid of plastics.
You want cheap fuel, just use automotive fuels for autos and not for power generation. For power generation, better to focus on renewable energy. Renewable energy development takes time…and should have been thought of 2 decades ago.
joeld,
Eway54 had to involve the DOE to get accreditation which will allow them to sell to the general public and put up filling stations.
Right now, you can only buy the veggie oil diesel if you are a member of their group.
As for the plastic to diesel converter, according to Jetjs, you need to run it for 6 hours. The typical load is about 100 kilograms and this converts to 95 liters of diesel.
If the electricity costs is, as you say, 66 pesos per hour, then the cost of electricity for a cycle is about 396 pesos.
Doing a bit a rough calculations here…they say 95 L of “diesel” per 100 kg of plastic (i would think, depends on plastic material quality). Assuming they produced something close to diesel which has a density of approx 0.85 kg/L then that would be 111 kg of diesel per 100 kg of plastic waste. Now I don’t know where they got the extra weight from, but the amount of matter put in is just not equal to the product weight (maybe some chemical additives). How about the quality of the fuel product, cetane no., lubricity, etc, which is very important for diesel engines. I hope they can really develop this technology to become viable at least for home use and not just a project similar to Dingle’s water powered car.
Well I dont need to buy their fuel produced from waste vegie oil… I want straight waste vegie oil. Its really simple to use, just gather your waste vegie oil, let it settle for few days, filter it through some filter media, put in tank of diesel rig and enjoy the smell of fastfood on your exhaust. I think what Eway54 wants is to commercialize this while in fact it is just a straight forward shift from diesel to waste vegie oil or you can even mix it with regular diesel. (Please note that this does not apply to newer diesel engines with CRDI as they are sensitive to fuel quality, I will not, in anyway be held responsible for any damages, directly or indirectly to your engine if you try this, but I did try it on older engines)
I looked at this again and now I have my doubts about the conversion.
Will research it some more and then either update this article or come up with a separate one so that I can more fully turn up the data I find.
I consulted with the guys at Eway54 and they’re also skeptical about the 100kilos to 95 liters conversion for plastic to diesel.
Moreover, looking at some videos, I did notice that the plastic diesel was dark — like used oil. It may or may not be a problem.
Your observation about SVO (straight veggie oil) actually got me to thinking about multi-fuel vehicles — which may be a good idea too.
No additional process for waste vegie oil aside from removing particles and use it on your old toyota engines or old nissan patrols, maybe even the trusty mitsubishi 4dXX engines. You can mix it with diesel or pure. In colder countries, it required heating to help with its viscosity as it tends to flow slowly in colder climates. In the Philippines it won’t be a problem. The only downside is you have to change your fuel filters more often.
The thing is, waste vegie oil produced in a household is just not enough unless i fry crispy pata everyday or bagnet. Fastfoods will not sell their waste vegie oil becasue someone is already doing that. The only chance i will be using vegie oil is when the price at the pumps will be more than the price of vegie oil at SM supermarket. (Its getting close actually). I havent tried palm oil though as coconut oil is cheaper. But then coconut oil clouds up more easily than vegie oil, it will be a problem with the engine. I have read somewhere about a high yielding plant being used to produce fuel oils. The local scientists / researchers should also look into it. The versatility of the diesel engine leads me to believe that it is the future of the automotive industry, not some hybrid or electric.
Anyways, thanks for the heads-up, Mr. Farol.
Assuming 0.85 kg/l for density of “diesel”, the weight should be 80.75 kg per 95 liters of fuel product.
About the plastic to diesel fuel: It does contain quite some nitrogen and sulfur (depending what is used as ‘harder’. In breaking it down , there is a lack of hydrogen to fillup the exposed bonds. So it isn’t exactly your average kind of dino-diesel.
About WVO to diesel. Make sure you filter properly and the oil is water free. Unless you have the luck to have a water separator filter set. Modern diesel do have a plastic filter in the tank, that will solute in pure oil quite easily. If filtered neatly downto 10 um, you can loose that filter. The higher viscosity is in all countries a bit of a problem: modern cars are designed for a specific viscosity, the tubes have diameters barely big enough to transport the fuel. You could replace by larger diameter, but heating with otherwise wasted heat from cooling water or exhaust will work just as nice. Exhaust heat is right after start available, but requires some good thinking on the sizing of the heat exchangers and good quality (pretty high temperatures there). Cooling water takes a 5 minutes to get enough heat circulated so would require either a dual tank system or a knowledgable driver (easy going for the first 5 minutes, don’t blaze off the drive way from the start, you be standing still after 500 meters)
Common rail injection with high pressure injection need an additive to lubricate: oil with those pressures doesnt do anything anymore. The sulfur in dino-diesel did that before, but now gone and replaced. Cars with Fuel Management Systems are a bit of pain, have to reprogram them to use multifuels. Of course possible, of course inaccesible.
On nuclear power: give me a warning if you are going to revive BNPP: I’ll be gone. BTW will IEA ever allow that such old plants are provided with fuel? I guess not. Secondly No country, at least not with approval from the nuclear power countries, will get permission to build a power plant which might be able to produce weapon grade materials. Such designs do exist, but are not of the BNPP type. So scrap BNPP anyway, find a decent spot (not on a fracture, next to a vulcano or at Tsunami beach). On a barge would be an idea.
On WVO fuel once more: check implementation guide for bio-diesel. It says it should contain a type of fat you can find only in required amounts in 3 plants, of which coconut is one. Palm oil, Jatropha oil is thereby excluded to be sold to public as bio-diesel. In European countries any alternative fuel which might be used in cars allowed to drive on the public roads are up for fuel tax.
One has to go with the governement to get permission to use/sell those fuels.
Dr Sir: Our company possess the total ability to make any waste plastic ( include 100% PVC ) into diesel or gasoline , converting rate above 75%-80%. We also can chage bio-diesel into regular diesel. Of course we have the ability to produce bio-diesel . If there is any tech problem , please contact mail:chihjen0705@gmail.com.
BX renewable company.
Hello Huang chihjen, Can you please tell me your company name ?
PLEASE SIR HOW CAN I GET ONE OF THESE REACTORS TO GHANA AND HOW MUCH WILL IT COST ME IN NO TIME,BECAUSE WE DO NOT KNOW EXACTLY WHAT TO DO WITH THE PLASTIC WASTE. PLEASE GIVE ME A FEED BACK ON MY MAIL. THANKS.