D&L's Chemrez says higher biodiesel blend to benefit industry

Biodiesel player Chemrez Technologies Inc., a wholly owned unit of chemicals maker D&L Industries, said Thursday that the proposal to increase the mandated coco-biodiesel blend in petroleum products would benefit the whole industry.

In a statement, Chemrez said an increase in the coco-biodiesel blend is likely to happen this year after the Department of Energy issued a draft circular laying down the guidelines on the biofuel blend implementation.

Under the proposal, the government is looking to hike the biodiesel blend from 2% or B2 to 3% or B3 effective July 1, 2024; and to 4% or B4 effective July 1, 2025, finally to 5% or B5 effective July 1, 2026.

“This directive from the DOE is a huge step towards progress and the development of the biodiesel and coconut industries in general,” said Chemrez president and CEO Dean Lao Jr.

“This should pave the way for greater energy self-sufficiency while collectively reducing our CO2 footprint on the planet.''

Chemrez is the country’s largest biodiesel manufacturer.

The company said a higher biodiesel blend means displacing imported petrochemical fuel with locally produced, environmentally friendly, and sustainable fuel.

With the annual diesel consumption of the Philippines at around 15 billion liters, an eventual hike to B5 from B2 means a 3% reduction in diesel volume, which translates to about 450 million liters of diesel displaced by biodiesel annually.

With cars being one of the biggest contributors to global warming, the greater use of a more environmentally friendly biodiesel will result in a significant reduction in the Philippines’ greenhouse gas (GHG) emissions, according to Chemrez.

It said that the estimated implementation of B5 will result in a reduction of about 1.1 million metric tons of carbon dioxide equivalent (CO2e) annually.

Moreover, Chemrez said that the biodiesel industry has been operating in an oversupply situation with industry utilization just around 40%, which has resulted in a highly competitive landscape and depressed margins for the industry players.

The company added that with the proposed increase in blend, the industry expects better utilization and overall profitability, which is expected to trickle down to the various segments of the local economy. — VBL, GMA Integrated News