D&L Industries Inc. said remains committed to expanding its biodiesel production capacity despite a government decision to delay the implementation of higher biodiesel blends, said its president and chief executive officer Alvin Lao.
“What we announced was that we are planning and studying that second plant,” Lao said.
Lao said the company has yet to provide a concrete timetable and capacity increase for the planned expansion.
The Department of Energy (DOE) in July deferred the scheduled implementation of a higher biodiesel blend mandate, originally expected to boost demand for coconut methyl ester (CME), the key ingredient in biodiesel.
The move postponed hiking the biodiesel blend from B2 (2 percent CME) to B5 (5 percent CME). The hikes were originally scheduled for October of this year and 2026.
Lao said the planned expansion project remains relevant and aligned with long-term demand trends.
“The fact that we made that announcement, it’s something we’re very serious about. We believe for many reasons, it makes sense for us to consider a second plant,” Lao said.
He said the implementation of the higher biodiesel blend was only postponed and not cancelled, which means it will still be implemented at a later date.
“So, in that sense, it would still make sense to proceed with more capacity for biodiesel,” he said.
The Biofuels Act of 2006 (Republic Act No. 9367) mandates blending biofuels in petroleum products such as CME for diesel and ethanol for gasoline. This will not only benefit coconut farmers but also offers environmental benefits.
Coconut oil prices in the international market have gone up to more than $3,000 per metric ton from $1,100 per metric ton due to external factors.
The DOE said that if the higher biodiesel blend were to be implemented, it could translate to higher pump prices for petroleum products.
D&L’s first plant in Batangas, which began commercial operations in 2023, includes a biodiesel facility alongside its manufacturing line for specialty chemicals and food ingredients.
