The Philippine government is set to raise the country’s biodiesel blending rate to 5% by October 2026.
Guidelines for raising the rate were announced by the country’s Department of Energy (DoE) on 20 May following recommendations by the National Biofuels Board (NBB).
In a statement on the government’s website, the DoE said the aim of the move was to reduce dependence on imported fuels, reduce greenhouse gas emissions and boost the local biodiesel and bio-ethanol sectors.
Under the new guidelines, downstream oil industry participants would be required to implement a 3% coconut methyl ester (CME) blend in all diesel fuel sold nationwide from 1 October [2024]. This percentage would gradually increase to 4% by October 2025 and to 5% by October 2026.
The DoE said the increase in the CME blend was expected to increase market opportunities for coconut farmers, biodiesel producers and other stakeholders in the coconut industry, with a 1% mandatory increase in CME blend requiring around 900M additional nuts as feedstock to produce around 100M-120M litres of additional CME requirements.
“Implementing the higher biofuels blend is a win-win solution as we promote economic growth, uphold environmental stewardship and strive for cleaner energy utilisation. It is also about investing in a future where sustainability drives progress,” Energy Secretary Raphael PM Lotilla said.
To ensure a smooth transition to higher biofuel blend percentages, the downstream oil industry would have to maintain sufficient storage capacity, blending facilities, transport systems and dedicated storage tanks and dispensing pumps, the DoE said.
The Biofuels Act of 2006 made it mandatory for all liquid fuels for motors and engines sold in the Philippines to be blended with biofuels. The current ethanol blend for gasoline has remained at 10% since 2012, while the CME blending last increased to 2% in 2007.
