D&L Industries, through its subsidiary Chemrez Technologies, Inc. (CTI), is moving forward with plans to build a second biodiesel plant as it anticipates stronger demand once the government lifts the suspension on higher biodiesel blend mandates, reports Manila Bulletin.
“What we announced was that we are planning and studying that second plant. We’re still there. It’s still in the planning stages,” said D&L President and CEO Alvin D. Lao. “It’s probably a matter of when, not if. But in terms of when, how big, and how much we’ll spend, we still do not have that information.”
Lao stressed that the company remains committed despite the government’s decision to delay the shift to a four percent (B4) biodiesel blend at fuel stations. “The increase has been postponed, not cancelled. It will still push through at a later date, so it makes sense to proceed with additional capacity,” he said.
On July 17, 2025, the National Biofuels Board suspended the rollout of the B4 and B5 blends, originally scheduled for October 2025 and October 2026, citing concerns over higher pump prices and inflationary pressures due to elevated coconut oil costs.
Even so, D&L said it sees the long-term prospects of the industry as promising. “The positive regulatory developments, coupled with the economic and environmental benefits of a higher biodiesel blend, present an opportune time to invest,” the company said in a statement.
Chemrez is currently the largest biodiesel producer in the country. With D&L’s Batangas plant completed and no other major capital spending in the pipeline, the company said it has the financial flexibility to consider another facility, which would require far less investment than the Batangas project.
D&L emphasized that biodiesel remains an essential product, and a favorable regulatory environment ensures consistent demand. The company also underscored the broader economic benefits, noting that at least 20 percent of the Philippine population depends on the coconut industry. Expanding biodiesel capacity, it said, could drive investments and create jobs in both agriculture and manufacturing.
From a sustainability standpoint, coco-biodiesel offers significant advantages. Research by the University of the Philippines Los Baños shows that it emits 78 percent less carbon than petroleum diesel. Raising the blend from B2 to B5 could also boost mileage by an estimated 10 percent, translating into direct consumer savings.
Chemrez has been at the forefront of the local biodiesel industry since 2002, when it funded technical studies on coco-biodiesel. In 2006, it built Asia’s first continuous coconut biodiesel plant, paving the way for the Philippines to establish its own biodiesel sector.
