Biodiesel producer Chemrez Technologies is set to repurpose its factory to increase production following the country's newly introduced higher coco methyl ester (CME) blending rate, according to an announcement by the government’s official newswire service the Philippines News Agency (PNA).
Effective from 1 October, the government’s new mandate increasing the coco methyl ester (CME) blend for all diesel fuel from 2% (B2) to at least 3% (B3) would increase biodiesel demand by 450M litres/year, PNA announced on 30 September.
The biodiesel blending mandate is set to increase to 4% (B4) on 1 October 2025 and to 5% (B5) on 1 October 2026.
In response to increased demand, Chemrez – part of D&L Industries – would be repurposing its 90M litres/year facility in Quezon City to increase production, PNA wrote.
“This directive … is a huge step towards progress and the development of the biodiesel and coconut industry in general,” Chemrez president Dean Lao Jr was quoted as saying.
Lao said the company was also considering building a new factory to cater for increased biodiesel demand.
In a statement on 30 September, the country’s Department of the Environment (DOE) said the higher CME blend would benefit local coconut farmers, biodiesel producers and other stakeholders in the coconut industry.
The DOE said an additional 900M/year of coconut nuts would be needed to meet the 1% biofuel blend.
