D&L Industries Inc. is considering building a second biodiesel production facility to meet the government’s mandated increase in biodiesel blends for oil companies.
The Department of Energy plans to raise the biodiesel blend from 3 percent (B3) to 4 percent (B4) by Oct. 1, 2025, and to 5 percent (B5) by Oct. 1, 2026.
D&L, through its subsidiary Chemrez Technologies Inc. (CTI), is the country’s largest biodiesel producer, operating a 90 million liter-per-year plant in Quezon City.
D&L said it maintains a positive long-term outlook on the local biodiesel sector, given the significant benefits that an increased biodiesel blend could offer to the economy, environment and consumers.
“By developing the industry, several facets of the economy are set to benefit. With at least 20 percent of the Philippine population directly or indirectly benefiting from the coconut industry, the potential for economic value creation in the form of additional investments and jobs in both the agriculture and the manufacturing sectors are significant,” D&L said.
The company said the push towards biodiesel translates into greater use of indigenous fuel, which reduces the country’s dependence on imported fossil fuels, supporting energy self-sufficiency.
“With less reliance on imported fuels, the fluctuations in global oil prices would have a lesser impact on the country’s foreign exchange reserves. This stabilization can lead to a more predictable economic environment for currency management,” the company said.
The company said CTI is now in the final stages of evaluating the risks and returns of building a new biodiesel plan.
The final decision will depend on how well it aligns with the company’s strategic growth objectives and the goal of maximizing long-term shareholder value.
The planned expansion, which will need substantial capital expenditure, is subject to shareholders approval.
D&L recently completed the construction of a P10-billion manufacturing plant is Batangas province.