Chemrez welcomes DOE decision on biodiesel blend

MANILA, Philippines — Biodiesel producer Chemrez Technologies Inc., a wholly owned subsidiary of D&L Industries, welcomed the move of the Department of Energy (DOE) to soon implement higher coco methyl ester (CME) or biodiesel blend in gasoline.

The move would pave the way for better energy self-sufficiency for the Philippines, said Chemrez president and CEO Dean Lao Jr.

“This directive from the DOE is a huge step toward progress and the development of the biodiesel and coconut industry in general,” Lao said.

The DOE has issued a draft circular which lays down the guidelines on the biofuel blend implementation.

The circular mandates an increase in biodiesel blend to three percent (B3) from two percent (B2) effective July 01, 2024, to four percent (B4) effective July 01, 2025, and to five percent (B5) effective July 01, 2026.

With the DOE’s circular, the higher blend is likely to happen this year after more than a decade of delayed implementation.

Chemrez is the country’s largest biodiesel manufacturer and is the country’s earliest advocate of harnessing the power of coconut oil to make higher value added and sustainable chemicals, collectively called oleochemicals.

In 2006, Chemrez constructed the first purpose-built and continuous-process CME plant in Asia.

It is estimated that the implementation of B5 would result in about 1.1 million metric tons reduction in carbon dioxide equivalent (CO2e) annually, which is a massive reduction equivalent to 13 times the annual GHG emissions of D&L as a whole, Chemrez said.

Tests done by the DOE also showed that a hike to B5 from B2 would result in a mileage improvement of around 10 percent which will further add up to the previously mentioned CO2e reduction.

In terms of prices, Chemrez said that the price effect of the higher CME blend would depend on the prevailing prices prior to the effectiveness of B3.

“If the price of CME is lower than diesel, the higher blend will make the pump price lower. Conversely, if the price of CME is higher than diesel, the higher blend will make the pump price higher. However, in either event, the attainable mileage improvement will far offset the cost of fuel on a net basis,” Chemrez also said.