Chemrez backs hike in biodiesel blend

MANILA, Philippines - Chemrez Technologies is supporting the recommendation of the National Biofuels Board (NBB) to increase the mandated biodiesel blend to five percent from two percent as required by the Biofuels Acts of 2006.

Agriculture Secretary Proceso Alcala announced over the weekend that the NBB, the inter-agency group tasked to implement the biofuels law, has approved the increase in the mandated biodiesel blend.

Chemrez managing director Dean Lao Jr. said the NBB’s move is a significant step in accomplishing the company’s goal to develop and market sustainable products that will benefit the Philippines and the environment.

“We hope that with commitment and urgency, the increase to B5 will be immediately implemented. We at Chemrez will not only fully support NBB, but as an active product innovator and advocate of green chemistry, we will constantly work on innovations that will help us continue to take steps towards cleaner energy, at the same time, uplift the lives of our fellow Filipinos,” Lao said.

Lao said the blending of coco biodiesel into diesel would reduce the country’s dependence on imported oil, in accordance with the Philippine Energy Plan that aims to achieve energy independence within the next decade.

Furthermore, Lao said simply blending five-percent coco biodiesel into diesel can save the Philippines an estimated P13 billion worth of imported crude oil every year.

The NBB is set to conduct public consultations for the proposed five-percent biodiesel blend.

Once approved, given existing capacity in the industry, local production can adequately meet the demand of the B5 mandate, Chemrez said, adding that at present, the company has the largest biodiesel capacity in the market.

Under the law, the amount of coconut oil for fuel to be blended with diesel may be increased taking into account considerations such as domestic supply and availability of locally sourced biodiesel.

However, since 2009, biodiesel has been blended at two percent with diesel fuel.

The NBB is chaired by the Secretary of the Department of Energy and comprised by the heads of the Department of Trade and Industry, Department of Science and Technology, Department of Agriculture, Department of Finance, Department of Labor and Employment, Philippine Coconut Authority and the Sugar Regulatory Administration.

The NBB aims to help the local coconut industry, which is currently facing challenges from cheaper palm oil competition.