MANILA, Philippines — Oil company Petron Corp. has started the development of its coco-methyl ester (CME) plant, which will allow the company to produce its own CME once completed.
“It has started already. Capacity is 180,000 tons per year,” Petron president and CEO Ramon Ang said.
Ang said it would take about two years for the project to be completed.
He said the plant would be able to provide a more reliable CME supply for the country.
“It can handle up to five percent of the requirement of the future,” Ang said.
The government intends to raise the CME content of biodiesel from two percent to five percent.
The Department of Energy and the Philippine Coconut Authority, which is part of the National Biodiesel Board, the body tasked to study and implement the Biodiesel Law, were previously both looking at 2021 to start the shift to five percent.
The pandemic, however, adversely affected the target implementation due the absence of assurances on the sufficiency of biodiesel supply and logistical limitations.
As part of plans to construct and operate its own CME plant, Petron’s board of directors has approved the amendment of the company’s primary purpose under its articles of incorporation to include biofuels.
The amendment allows the company to construct and operate a coco-methyl ester plant and secure relevant permits.
Petron said the CME plant will eliminate dependence on third-party suppliers and provide higher margins for diesel.
Last month, the company announced plans to raise as much as P50 billion from the issuance of preferred shares as the company turns its focus on growing its operations with full recovery now within reach.
Petron in 2022 achieved a second straight year of growth despite navigating a still volatile industry environment.
Petron ended the year with a net income of P6.7 billion, up nine percent from P6.1 billion recorded in the previous year.