Chemrez Technologies Inc., a subsidiary of D&L Industries, is running its coco-biodiesel plant at full capacity on rising orders from oil companies after the government set a 3-percent blend (B3) starting October 2024.
D&L president Dean Lao Jr. said in a news briefing the new P10.5-billion plant in Batangas might repurpose some production lines in newly-opened Batangas plant for other products if the blend increases to 4 percent (B4) next year and 5 percent (B5) by 2026.
Lao said its existing plant in Libis, Quezon City produces 90 million liters annually versus industry requirement of 250 million liters annually.
Aside from repurposing some of its production lines, Lao said the company may also build a new biodiesel factory, but it needs to calculate the return on investment for the planned expansion.
“We have to weigh carefully which will be more beneficial for us to expand,” said Lao.
As the largest biodiesel manufacturer in the Philippines, Chemrez expects the 3-percent blend to boost biodiesel volumes by 50 percent, which could improve profits for the industry.
Lao said the government’s directive is a key step forward for both the biodiesel and coconut industries.
“This directive from the DOE is a huge step towards progress and the development of the biodiesel and coconut industry in general,” said Lao.
A higher biodiesel blend means using more local, sustainable fuel instead of imported oil. With annual diesel use at about 15 billion liters, moving to B5 from B2 could displace around 450 million liters of diesel each year.
As cars are major contributors to global warming, increased use of biodiesel could significantly cut greenhouse gas emissions in the Philippines. Tests also show that switching to B5 may improve mileage by about 10 percent, further reducing CO2 emissions.
