PCIEERD Call for Proposals under its Priority Programs

(1)

Department of Science and Technology

Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD)

V. PROCESS SECTOR

PCIEERD under the Process Sector covers the process industries where the primary production processes are either continuous or occur on a batch of materials that is indistinguishable such as chemicals, pharmaceuticals, petroleum, plastics, rubber, textiles, tobacco, food, beverages, etc. as cited by IISE (Institute of Industrial and Systems Engineers, US).

The Process Sector of PCIEERD invites Research and Development proposals for the following programs to assist specific key industries in the country: 

1. Natural Products Program for (a) Gums, Oils and Resins Industries and (b) Food Industry as user of Natural Dyes (Direct Call)

2. Chemical and Biological Manufacturing and Allied Industries Program for (a) Industry as customers of Metrology such as Food, Beverage, etc. and Laboratories supporting them (Direct Call)

3. Textiles Program for revitalizing Textile Industry 4. Agro-Industrial Program for Coffee Industry

With CFP 2024, the Process Sector aims to: 

1. Assist the identified sub-sectors in their S&T needs through R&D Programs and interventions resulting to increased competitiveness of the industry

2. Engage the R&D Institutes and Academe in collaboration with the industry in developing R&D programs for the identified research calls

3. Contribute to the development of the industries by enabling R&D programs that are anchored/aligned to the following:

▪ Goal 9 of the Sustainable Development Goals, specifically under 9.5     Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending  

▪ Philippine Medium-Term Development Plan 2017-2022 under Part 4.

Increasing Growth Potential: Vigorously Advancing Science, Technology, and Innovation which states that by 2022, the efficiency and productivity of agriculture, industry, and services sectors will be improved. New public goods and services (or how services are delivered) will be created and improved.

These will be done through maximizing and adopting science, technology and innovation (STI).   

▪ Harmonized R&D Agenda under Section IV. Industry, Energy and Emerging Technology Research and Development Agenda 2017 – 2022 in B.

Countryside Development where more micro, small and medium enterprises (MSMEs) will be developing and producing competitive and world class products and services and C. Competitive Industry where more industries will be enabled by the state-of-the-art R&D, technologies and science-based policies, moving up the value chain and attracting foreign direct investments  

(2)

A. NATURAL PRODUCTS PROGRAM

The Natural Products subsector is the program focused on products from extraction and downstream processing from agricultural and marine sources that would serve the needs of the community for industries, such as personal care, cosmetics, food, household products, and non-active components of pharmaceuticals. Natural Products industries has been a fast growing economic cluster owing to its products’ associated health benefits and functionality.

The Call for Proposals for CY 2024-2026 will focus on the program for gums, resins, and oils and natural colorants for food.

I. Improvement of Extraction, Processing, Application, Standardization Technologies and Performance Assessment of Selected Gums, Resins and Oils 

Call Rationale 

USAID has recognized the Philippines as one of the 17 mega biodiverse countries in the world. Remarkably, geographical isolation, diverse habitats, and high rates of endemism has contributed to the country’s biodiversity, which contains two-thirds of the Earth’s own biodiversity. Furthermore, USAID stated that around $100M (Php500M) of net benefits come from timber and non-timber products. As such, strengthening the Philippines’ R&D on non- timber forest products is the next rational objective.

The information below aims to demonstrate that the country has a good potential for growth in the gums, resins, and oils industry by showing the growth of the market.

II. On Essential Oils

According to the Observatory of Economic Complexity (OEC), in 2019, the world trade value of essential oils amounted to $6.31B (Php315.5B), with India as the top exporter, valued at

$1.17B (Php58.5B), equivalent to 18.5% of the market share; on the other hand, the USA was the largest importer of essential oils, valued at $1.11B (Php55.5B) for the same year.

Furthermore, the band graph below demonstrates the 10-year data on the exports value of essential oils, which demonstrates the gradual increase of the essential oils market, doubling in value from $2.63B (Php131.5B) in 2009 to $6.31B (Php315.5B) in 2019.

Photo source: oec.world

(3)

Meanwhile, the Philippines exported products amounting to $1.89M (Php94.5M), equivalent to 0.3%, and importing $16.3M (Php815M), which 0.26% of the market.

In 2019, the major countries that imported essential oils from the Philippines include Singapore, Malaysia and USA while the countries that exported to the country includes India, USA and China.

III. On Gums and Resins

Excluding gum Arabic, the trade of natural gums, resins, gum-resins, and balsam is a smaller market than essential oils. In 2019, their world trade value amounted to $587M (Php29.4B), ranking 2572^nd most traded product, whereas essential oils ranked 444^th.

Afghanistan is the reported top exporter, with products valued at $129M (Php6.5B) in 2019, which is 22% of the market share. India, the top importer, has reportedly imported gums amounting to $163M (Php8.15B), at 27.8% of the worldwide traded products. Other players in gums and resins export includes Indonesia and Somalia.

The band graph below shows the 10-year growth of the gums market. The market almost doubled from $279M (Php14B) in 2009 to $587M (Php29.4B) in 2019.

Photo source: oec.world

Unfortunately, Philippine data is either too small or is non-existent to be recognized in the data visualizations in OEC. However, this lack of data could mean an opportunity for the country to grow in this sector.

Call objective   

The objective of this call is to develop innovative technologies to enhance quality and even create new market segments for the use of gums, oils and resins. This is to take advantage of the abundant resources of our country for the important group of non-wood forest products which can be various sources of GRO such as almaciga, elemi/pili, ferns, and many more. Furthermore, it can possibly support establishment of new industry players for extraction of GRO or provide new materials to industry end-users. Aligning our abundant natural resources with additive needs of the industries for GRO through progressive R&D, specifically for its extraction, refinement and purification technologies and even application studies to assess as potential substitution candidates for important additives, will be targeted in the program. For the oils, conventional technologies including steam diffusion, hydro- distillation, destructive distillation and cold expression may require time-consuming and

(4)

resource-intensive processes, therefore the call can include studies highlighting the need for better technologies that are eco-friendlier and more efficient. 

Call scope   

The R&D proposal may include the following potential study areas: 

1. Improvement technologies in all aspects of the industry such as processing, grading, and classification for increased yield and improved quality control 

2. Application and product development studies for utilization of natural gums and resins to broaden its usage and increase market position 

3. Enhanced extraction and preservation technologies of high value oils in the market such as supercritical fluid, microwave, etc. by improving yield, purity, and cost of production

4. Development of extraction and collection technologies for possible new GRO sources (such as ipil-ipil, bitaog, talisay, Philippine cinnamon, cashew, rubber seed, pili) with properties comparable to existing in-demand GRO, to be sourced from bark, seed, stem, husks, etc.

5. Formulation studies to enhance natural properties of exudates 6. Utilization of by-products generated from processing exudates

The proposals should demonstrate the following characteristics and should be well-written in the documents: 

1. Results of industry roadmaps (if available)

2. Intensive Review of Literature showing no duplication in proposal concept with local researches conducted

3. Technology Readiness Level between 2-6. It should encompass Technology Formulation, Validation of the Technology, Small Scale Prototype, Large Scale Prototype (if applicable). 

4. Sustainability of both the supply of raw materials and finished product. 

5. Has a potential for commercialization. Commitment letter/s from industry partner/s to support the marketability of the proposed product to demonstrate interest is required. Ideally, the industry partner will use the resulting technology in its formulation during the validation phase. 

PCIEERD will fund/endorse maximum of 5 projects not to exceed Php110M budget covering all projects. The maximum duration for each project is 3 years.

IV. Natural Dyes Color Stability Improvement Technologies for Food Applications (Direct Call)

Call Rationale   

According to the Dyes and Pigments Market Procurement Research Report (May 2021) of SpendEdge, the forecast incremental spend of dyes and pigments in  2021- 2025  is projected around $14.94B (Php746B) and with expected compound annual growth rate of 6.34%. In 2019, data from the Observatory of Economic Complexity (OEC) showed that the import market of synthetic dyes is $14.3B (Php71.4B). The Philippines shared 0.57%

of the market with a corresponding value of $82.2M (Php4.10B).  On the other hand, the export share of the country is $3.32M (Php165.8M). 

The key market trend for food colors is highly affected by the changing consumer behavior and market dynamics driving food manufactures to reinvent formulation of additives

(5)

in food products. The COVID-19 pandemic has significantly increased the consumer’s healthier food choices, generating continuous demand for natural food ingredients. Based on this market trend and importation data for use of dyes, there is a potential for shifting into use of natural dyes being a product of great interest both in the local and global trade. However, the high cost of natural color production remains a primary market constraint over synthetic dyes. 

The revolution for natural ingredients, including dyes and colorants, is continuously being driven by ethical consumerism. This is a potential enabler to direct R&D activities towards a cost-effective application of green technologies to natural dyes and colorants manufacturing to highlight and promote clean label in food products, cosmetics, textiles, and other industrial applications. 

The objective of the call is to develop extraction technologies for natural colorants, fit for food applications and compliant to international standards. The stability of the food colorants sourced naturally should be tested in different food systems to determine wide applicability of use.

Call scope   

The R&D initiatives may include the following potential study areas: 

1. Upscaling of Extraction, Characterization and Application of Natural Colorants in Food 2. Technologies for improvement/development:  

a. stability and sensory quality at all stages of the production chain (i.e., production, transportation and marketing) 

b. efficiency in extraction process and can be translated to large scale process (reduction of solvent used, reduction of extraction time, reduction in energy used) 

c. improved cost of production 

3. Characterization of food systems where natural colorant was used

1. Results of industry roadmaps (if available)

5. Has a potential for commercialization. Commitment letter/s from industry partner/s to support the marketability of the proposed product to demonstrate interest is required.

Ideally, the industry partner will use the resulting technology in its formulation during the validation phase. 

(6)

B. CHEMICAL AND BIOLOGICAL MANUFACTURING AND ALLIED INDUSTRIES PROGRAM

This program will be carried-out by supporting R&D initiatives on but not limited to, the chemicals and allied industry, and food products. The products cover basic and specialty chemicals, manufacturing products by predominantly chemical processes [2], chemical preparations [3], sensors, chemical and biological reference materials and standards, and related technologies.

The Call for Proposals for CY 2024-2026 will focus on the advancement of metrology capabilities of the country.

I. Strengthening the Philippine Physical, Chemical and Biological Metrology for Advancement of Industries (Direct Call)

Call rationale  

Metrology, the science of measurement, is vital for fair trade, consumer protection, health, safety, product quality, R&D, and environmental protection of a country. The importance of measurement can be seen practically everywhere, for example, when buying commodities by weight, getting blood pressure for diagnosis, measuring diameter for proper fit, time of day, duration of metered call, speed, and for R&D, among other things. For the Philippines, metrology is led by and practically centered at the National Metrology Laboratory (NML) of the Industrial Technology Development Institute.

With the NML granted ISO 17025:2005 accreditation by DAkkS in Braunschweig, Germany in 2012, it has been a great milestone for NML to be recognized worldwide for metrology. At present, NML of the Philippines has CMC in the field of mass.

The current program being implemented by NML is working towards achievement of additional CMCs in the future. The Calibration and Measurement Capabilities or CMCs have been vouched for competence by all the Regional Metrology Groups worldwide. Under a CMC, the measurement or calibration should be (a) performed according to a documented procedure and have an established uncertainty budget under the management system of the NMI or the calibration laboratory; (b) performed on a regular basis (including on demand or scheduled or convenience at specific times in the year); and (c) available to all clients.

Continuous R&D programs and provision of S&T services related to metrology will help in accomplishing the goal of global recognition in metrology through unceasing work towards maintenance and additional CMCs.

Call objective 

In the four (4) projects of the current program, one (1) focused on strengthening the physical metrology capabilities of the NML while the others are building on the enhancement of traceability for metrology in Chemistry and Biology. To sustain and further stabilize the Chemical and Biological metrology, the development of technologies for the next priority list of analytes/microorganisms should be done. This is to also support the industries heavily reliable on dependable testing results such as food, beverage, chemical and other related industries. Moreover, the programs will continuously upgrade the capability of the physical metrology laboratories to be at par with international standards and sustain traceability through its accreditation, continued competitiveness of its personnel and completeness of its facility.

(7)

Call scope 

The R&D proposal may include the following potential study areas: 

1. Development of Reference Materials for use of Testing and Quality Assurance Laboratories for analytes and matrices concerning contaminants or toxic substances or microorganisms in:

• food including herbal supplements

• water

• cosmetics

• toys

• environment

2. Conduct of Proficiency Tests for target analytes/microorganisms (identified above) among Testing Laboratories and Quality Assurance Laboratories

3. Development of Methods for Reference Value Assignments for target analytes/microorganisms (identified above)

4. Strengthen the measurement areas of physical metrology namely: Temperature, Pressure, Length, Mass, Humidity, Density, Volume, Hardness, Force, Flow, Electricity, Frequency, Torque, Photometry, Vibration and Acoustics, Gravity, Ultrasound Vibration, Viscosity, Radiometry, Magnetism, Gravity and Nanometrology

Specific Features Sought in this Call

1. Data demonstrating the importance of developing RMs/conducting PTs for the target analytes/microorganisms in the identified matrices, such as detention cases for exports, product recalls for detected health hazards, poisoning cases related to products, etc.

2. List of target participants for the provision of PT/use of RMs and letter/s indicating participation (if available, highly encouraged)

3. Sustainability plans and roadmap for metrology in chemistry and biology

4. Results of industry roadmaps identifying specific needs related to metrology (if available)

A. TEXTILE PROGRAM 

The Textile sub-sector covers products that develops and makes use of fibers, yarn intermediates, yarns, fabrics, and end-user products that retain all the strength, flexibility, and other typical properties of the original fiber or filaments. This is based from the Standard Terminology Relating to Textiles, ASTM D123 – 19. 

The Call for Proposals for CY 2024-2026 will focus on the identified call scope for Textiles.

I. Technical Support to the Philippine Textile and other Allied Industries  

Call rationale 

According to the Philippine Statistics Authority, the textile industry contributes 0.99% to the gross value added in the Philippine Manufacturing sector. The exports of textile industry have an average annual growth rate of 1.7% from 2016 to 2019. However, this industry has been

(8)

negatively affected by the pandemic with the exports dropping by 8% in 2020. It further decreased by 3.2% when comparing the exports in the first three quarters between 2020 and 2021. Meanwhile, for the domestic market, there is limited to no available data to assess the current industry situation for the textile sector. Government support through research and development is necessary to help the sector recover from the challenges posed by the pandemic.  

With the continuous support to the textile industry yearning for Philippine-sourced fibers and other materials to be used in the production of textiles for garments, and even extending to other textile feeder industries such as home decors, the provision of S&T support is essential to the industry’s revitalization and sustainability.    

The objective of this call is to support R&D programs that will improve and develop technologies to enhance textile production using natural fibers and other low-cost, sustainable and comparable sources and create new materials for textiles with improved properties. To contribute to the economic status of the Philippine Textile industry, the market value of the target products should be highlighted to esteem endorsement for R&D support.  

  Call scope   

The R&D initiatives may include the following potential study areas: 

1. Latest trends yet cost-effective technologies focusing on textile upcycling/recycling 

2. Development of cost-effective technologies using natural fibers resulting to highly acceptable wearability for consumers covering all aspects of production such as fiber treatment, spinning, finishing, etc. 

3. Improved body measuring technologies for textile and other related industry applications compatible with garments/textiles developed from natural fiber sources 

4. Ex ante evaluation of the Philippine Garments and Textile Industry

5. Compilation and showcasing of existing information on the local textile resources for stakeholders

1. Results of industry roadmaps (if available) 

5. Has a potential for commercialization. Commitment letter/s from industry partner/s to support the marketability of the proposed product/facility to demonstrate interest is required. Ideally, the industry partner will use the resulting technology in its formulation during the validation phase. 

(9)

B. AGRO-INDUSTRIAL PROGRAM

The Philippines is an agricultural country. However, despite this widely accepted fact, the country’s agriculture is on the decline. Philippine Star reported that as of 2017, only 25% of Filipinos are employed in the agricultural sector. The World Bank also reports that the agriculture sector is one of the poorest performers in 2016, when production declined by 1.3%.

In the Agricultural Indicators System (AIS) published by Philippine Statistics Authority (PSA) last November 2020, the total number of persons employed in agriculture continued to decline and in 2015-2019, about 9.70 million persons were recorded as employed in the sector.

Correspondingly, the agriculture sector's contribution to the country's total employment decreased to 22.9 percent. This shows that the rapid growth of the industrial and service sectors has caused a dwindling in the number of jobs in agriculture. This is where the program comes into the picture.

The Agro-industrial Program is the sub-sector of the economy where farming meets technology. The main focus of this sub-sector is to uplift the lives of the country’s farmers by introducing research and development to boost productivity, to improve existing products and create new ones, and to support or change existing policies with science. This program is geared towards the United Nations Sustainable Development Goals number 1: No Poverty.

This sub-sector complements ISPs of PCAARRD, where PCAARRD focuses on upstream industry, which covers genomics, plant cultivation, and up to harvest; while PCIEERD handles the R&D on the downstream processes - product development, by-products processing and/or conversion, and other post-harvest processing.

The Call for Proposals for CY 2024-2026 will focus on the identified call scope for Agro- Industrial Program.

I. Valorization of Agricultural Wastes from Coffee

Call rationale 

According to the market report by the International Coffee Organization in May 2021, total production for coffee year 2020/21 is estimated at 169.60 million bags, representing a 0.4%

increase on 168.94 million bags in coffee year 2019/20. Although world consumption is increasing, it remains 1.2% below world production. World coffee consumption is projected to increase by 1.9% to 167.58 million bags in 2020/21 compared to 164.43 million bags for coffee year 2019/20. Exports in April 2021 totalled 11.40 million bags, representing a 1% increase compared with 11.29 million bags in April 2020.

In the Philippines, the local consumption is at 132,000 MT in year 2014, as reported in the 2017-2022 Philippine Coffee Industry Roadmap which is jointly released by Department of Agriculture (DA) and Department of Trade and Industry (DTI). In the article of Ms. Tan for Manila Bulletin, the country’s coffee production has actually been steadily decreasing, from 68,800 MT in 2016 to 60,600 MT in 2020. This is despite the rising popularity of coffee as a beverage in the country. Factors that contributed to this decline include ageing farmers, farmers shifting to other crops, and the conversion of agricultural land to real estate. As of 2020, there are about 1,300 hectares planted to coffee, with the Department of Agriculture leading efforts to further increase production by planting new trees and rehabilitating old ones.

To support the difference in the supply and consumption, the revised industry roadmap to be released on the last quarter of 2021 aims for a production of 240,000 metric tons next year, or

(10)

1.8 to two kilos of coffee beans per tree per year, a one to 1.2 kilo increase from the current .8 kilos per tree per year (https://mb.com.ph/2021/10/05/revised-philippine-coffee-roadmap- hopes-to-revitalize-local-coffee-industry/).

With this government support for increase in production, DOST is augmenting the initiative with provision of R&D anticipating increase as well in the by-products associated with coffee processing.

Call objective

The objective of this call is to foster technological advancement fit for Philippine coffee industry by developing innovative technologies to provide diversified products from coffee tree and by- products from coffee processing. The products should have high-value and with defined target market to rationalize R&D funding provision.

Call scope

The R&D proposal may include the following potential study areas:

1. Processing technologies for deriving high-value products from other parts of the coffee tree (stems, leaves, etc.) to provide other sources of income to coffee processors 2. Utilization of by-products generated from processing coffee such as coffee husk, pulp,

etc. to produce high value products

3. Application and product development studies for new and innovative high-value products from coffee

The proposals should demonstrate the following characteristics and should be well-written in the documents:

1. Results of industry roadmaps (if available)

3. Technology Readiness Level between 2-6. It should encompass Technology Formulation, Validation of the Technology, Small Scale Prototype, Large Scale Prototype (if applicable).

4. Sustainability of both the supply of raw materials and finished product. The mode of collection of target raw materials should be demonstrated to support logistics viability.

5. Has a potential for commercialization. Commitment letter/s from industry partner/s to support the marketability of the proposed product to demonstrate interest is required.

Ideally, the industry partner will use the resulting technology in its formulation during the validation phase.