An initial 10,000 liters of coconut methyl ester (CME) will be used to test run the project, according to Sarmiento, who has been appointed as agency overseer by President Arroyo.
The CME will be used as five-percent fuel additive for standard diesel-powered vehicles. At this ratio, the CME additive can greatly reduce their carbon emission without harming the engines, thus enabling their owners to comply with the Clean Air Act now being implemented in Metro Manila.
"The use of CME as fuel additive can generate an equivalent demand of 500,000 metric tons of coconut oil annually," Sarmiento said.
He also cited another program that will target high-end industrial users of coconut products. These include the olio-chemical and pharmaceutical industries where the coconut enjoys an inherent advantage over other types of vegetable oils.
"We can generate higher revenue for our farmers if our coconut products shall be used as raw materials for industrial use outside of the cooking oil requirements," Sarmiento said of the planned diversification of coconut use aimed at protecting farmers from dwindling prices.
"Nonetheless, we shall continue to protect our present cooking oil market," he added.