Shell backs coco industry to ensure biofuel supply

LUCENA, Quezon, Philippines —The social arm of Pilipinas Shell Petroleum Corp. is beefing up its support for the local coconut industry in a bid to ensure stable supply of its biofuels component and create sustainable livelihood to communities.

Pilipinas Shell Foundation Inc. (PSFI) has allocated $150,000 or nearly P8 million in the next three years for this initiative, which is expected to benefit more than 150 farmers in two municipalities in Lucena.

“Helping coconut farmers ensures the availability of coconut oil for the coco methyl ester component of our biofuels. This will also provide additional income and better yield and productivity to our farmers,” PSFI executive director Edgar Veron Cruz told reporters during the signing of the agreement Wednesday.

The Collaboration for Coconut Productivity and Nurturing Farmers’ Trade (COCONUT) program is a partnership with JNJ Oleochemicals Industries Inc., a manufacturer of oleochemical and biodiesel products derived from natural sources such as coconut and vegetable oils.

The project aims to address the needs of the coconut farmers by helping organize a local coconut farmer cooperative, conducting seminars in managing coconut farms to improve their yield, and setting up trainings for sustainable income opportunities in processing coconut products such as handicrafts, jewelry and furniture.

“This is about creating more environmentally sustainable fuels for the Philippines and more sustainable livelihood for coconut farmers by providing increased livelihood opportunities,” Cruz said.

Biofuels remains to be the sustainable and responsible way of delivering energy. However, it only accounts for three percent of global transport fuels.

Shell International, for instance, sold nine billion liters of blended biofuels worldwide last year.

Meanwhile, pilot sites Unisan and Agdangan in Quezon showed that about 50 percent of coconut farmers were relying on coconut farming alone.

“This is an expansion of Shell’s previous initiatives for cleaner energy through biofuels as we continue to comply with government regulations regarding biofuels.  We have actively sought to find the mix that best serves the Philippines,” Shell International’s biofuels sustainability compliance officer Helen Scholey said.

Shell is one of the first energy companies to invest in making advanced biofuels from alternative agricultural products.

It produces one of the lowest carbon dioxide biofuels available today through its joint venture Raízen, which makes ethanol from sugar cane in Brazil, thus reducing emissions by about 70 percent.

The COCONUT project aims to support Shell’s commitment of reducing global warming by cutting down the net carbon footprint not just with reducing emission from its own operations but also in changing the mix of products sold to customers.