According to Presidential Adviser for Agri-Modernization Angelito Sarmiento, recently appointed agency overseer by President Arroyo, an initial 10,000 liters of coconut mythel ester (CME) will be made available to test-run the project.
The CME will be used as five percent fuel additive with standard diesel fuel.
It was disclosed that the use of five percent CME additive will greatly reduce the carbon emission of diesel-powered vehicles without harmful effects on the engine.
This will also enable diesel-fueled vehicle owners to comply with the requirements of the Clean Air Act which is 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, thus creating a new market of higher value for coconut products," Sarmiento said.
Sarmiento said a program will be put in place for coconut products to target other high-end users such as the olio-chemical and pharmaceutical companies where there is an inherent advantage of coconut over other types of vegetable oils.
"We can generate higher revenue for our farmers if our coconut products will be used as raw materials for industrial use outside of the cooking oil requirements. However, we shall continue to protect our present cooking oil market" he added.