Chemrez Sees Increased Orders Amid Higher Coconut Blend in Diesel

Chemrez Technologies Inc., a subsidiary of D&L Industries, is ramping up operations at its coco-diesel plant in Batangas following a surge in orders linked to the government’s mandate to increase the coco methyl ester (CME) blend in diesel fuel to 3% starting October 1, 2024. Chemrez’s recently completed P10.5-billion plant is now running at optimal capacity to meet this increased demand.

In May, the Department of Energy (DOE) issued a circular mandating the nationwide increase in CME blend from 2% to 3% in diesel fuels, with further increases planned for 2025 and 2026, when the blend will reach 4% and 5%, respectively.

Chemrez President Dean Lao Jr. noted that the company’s production of higher-margin coconut oil products is also increasing. He emphasized that the growth in biodiesel demand could lead to better profitability for the industry, with a 50% increase in biodiesel volumes expected from the CME blend increase.

Lao called the DOE directive a significant step toward energy self-sufficiency and reducing the country’s CO2 emissions.

The Biofuels Act of 2006 mandates that all motor fuels sold in the Philippines must be blended with biofuels, supporting both the biodiesel sector and coconut industry.