Chapter I

INTRODUCTION

This chapter presents the background and rationale of the study, statement

of the problem, hypothesis, theoretical, and conceptual, frameworks,

significance of the study, scope and delimitations of the study, and definition of

terms.

Background and Rationale of the Study

There are great opportunities to utilise coconut oil as a fuel in the Pacific.

Coconut oil can be blended with diesel fuel and under certain conditions totally

replace it. Coconut oil in Pacific islands countries is increasingly used in both

transport and electricity generation through its lower local cost. Other benefits

include the support of local agro-industries and a decrease in emissions. (John

Cloin January 25, 2009)

Biofuels in the Pacific The use of biofuels is nearly as old as the diesel engine

itself, as Mr. Diesel designed his original engine running on peanut oil. During

periods in history when regular diesel supply was hampered seriously such as

during World War II, throughout the world vegetable alternatives from different

sources.
 The specific circumstances of small Pacific Islands call for local solutions.

Since most Pacific island countries import their fuels at very high transport costs, it

makes economic sense to find local fuel supplies. Even though the Pacific islands

on a world-scale do not contribute much to the emission of greenhouse gasses,

their case for mitigation assistance under the Kyoto Protocol becomes much

stronger if they simultaneously look for environmentally beneficial alternatives to

fossil fuels. ( Margie Aldous March 22, 2003)

The Philippines has launched the use of biodiesel, particularly, Coconut

Methyl Ester or CME. CME is derived from coconut oil and is more appropriately

known as Coco-Biodiesel. Compared with other forms of biodiesel, the medium

carbon chain of Coco-Biodiesel offers excellent Lubricity, Solvency and

Detergency.

Coco Biodiesel cuts maintenance costs because of its superior lubricating

and cleaning properties. Promotes better, more efficient combustion and less

engine vibration because of its higher cetane number inherent oxygen content.

Biodiesel is a renewable and biodegradable diesel fuel extracted from plant oil.

A natural hydrocarbon with negligible sulfur content.

Coco-biodiesel will spearhead the introduction of the ester industry in the

Philippines- an industry that would create more jobs. Will provide a potential high
value export products. Will promote participation of the Philippines in the

potentially huge biofuel industry. Will enhance energy supply security through the

use of indigenous resources, at the same time resulting in foreign exchange

savings. Will benefit 3.5 billion coconut farmers and 20 million Filipinos dependent

on the coconut industry.

Due to the increasing cost of diesel fuel in Capiz, diversification to blends of

coconut oil fuel is increasingly viable, contributing to a more competitive utility

operation. A feasibility study at EPC in Samoa using low blends of filtered coconut

oil in a non-modified engine shows short term savings can be achieved with

relatively little investment. Other benefits include the support of local agro-

industries and an overall decrease in emissions.

There is great potential for replication at other power utilities in the Pacific

region. Biofuels in the Pacific Biofuels have been used worldwide during periods

of scarcity of fossil fuels or extremely high prices. Since most Pacific island countries

import their fuels at very high transport costs, and likewise exporting coconut oil is

expensive, there is a special case for the use of locally produced fuel. Further

financial benefits can be derived from Green Credits in the emerging Kyoto-

related markets.