Group welcomes DOE's plan to increase biodiesel blend by July 2024

Metro Manila (CNN Philippines, January 4) — A major industry player expects the government to finally hike the biodiesel blend this year as the Department of Energy (DOE) released a draft circular on its implementation.

Chemrez Technologies, the country's largest biodiesel manufacturer and a subsidiary of listed D&L Industries, on Thursday said this would be "a big win" for the sector, consumers, and the environment that has been delayed for more than a decade.

"This directive from the DOE is a huge step towards progress and the development of the biodiesel and coconut industry in general," Chemrez President and Chief Executive Officer Dean Lao Jr. said.

"This should pave the way for a greater energy self-sufficiency while collectively reducing our CO2 (carbon dioxide) footprint on the planet," Lao added.

Based on the draft circular posted on the agency's website, the biodiesel or coco methyl ester (CME) blend will be increased to 3% effective July 1, 2024.

The DOE targets to reach a 5% mix by July 2026.

Under Republic Act No. 9367, refiners are ordered to blend biofuels with regular gasoline and diesel to reduce dependence on fuel importation, while boosting Filipinos farmers income.

Late last year, Energy Secretary Raphael Lotilla said the government was looking into raising the coco biodiesel blend amid the high prices of oil products.

This plan, he said, can bank on the strong coconut production.

"A higher biodiesel blend means displacing imported petrochemical fuel with locally produced, environmentally friendly, and sustainable fuel. With an annual diesel consumption of the Philippines at around 15 billion liters, an eventual hike to B5 (5%) from B2 (2%) means a 3% reduction in diesel volume which translates to about 450 million liters of diesel displaced by biodiesel annually," Chemrez Technologies said.