TANAUAN CITY, Batangas — DandL Industries, Inc., through its subsidiary Chemrez Technologies Inc., is set to enhance its factory operations in Quezon City to meet rising biofuel demand prompted by a new Department of Energy (DOE) mandate effective October 1.
According to Philippines News Agency, Chemrez Technologies, known as the nation’s top biodiesel producer, is considering repurposing its existing lines to increase its production capacity. Currently, the company’s output stands at 90 million liters, which addresses only a fraction of national demand. The impending DOE Circular 2024-05-0014 stipulates that all diesel fuel must contain a minimum of 3 percent coco methyl ester (CME) blend, up from the current 2 percent. This adjustment is expected to elevate biofuel requirements by 450 million liters.
Dean Lao Jr., President of Chemrez, discussed these changes during a media tour of DandL’s new PHP 10.5 billion facility. He highlighted the DOE’s progressive policy, which not only aims to boost the biodiesel sector but also supports the broader coconut industry. Future increments in the biodiesel mix are planned, with a rise to 4 percent by October 2025 and 5 percent by October 2026.
The DOE has articulated that this policy shift will directly benefit local coconut farmers and biodiesel producers by necessitating an additional 900 million coconut nuts annually to meet the increased biofuel mix. Furthermore, the agency predicts enhanced fuel efficiency for consumers, citing a potential increase in diesel mileage from an average of 10 kilometers per liter to nearly 11 kilometers per liter, based on tests using a 5 percent CME blend. This improvement could translate into fuel cost savings of approximately PHP 0.50 per liter, potentially neutralizing any price hikes resulting from the higher biofuel content.
In addition to addressing immediate production needs, Lao also revealed plans for the new Batangas plant to phase out petrochemical and palm-based products in favor of more sustainable options, reflecting growing consumer demand for natural and environmentally friendly products. He anticipates that this transition could be completed within three years, emphasizing the clear preference of consumers for sustainability in their product choices.