Coconut farmers in the Philippines are poised to benefit from D&L Industries’ plans to construct a new biodiesel factory through its subsidiary, Chemrez Technologies, Inc. (CTI), the country’s leading biofuel producer, reports Philippine News Agency.
D&L Industries announced its intention to invest in a second biodiesel plant due to the anticipated increase in demand driven by the government’s mandated rise in the coco methyl ester (CME) blend for diesel fuel. The CME blend will increase from the current 3 percent (B3) to 4 percent (B4) starting October 1st.
“The implementation of a higher biodiesel blend provides a robust and value-added market for coconut oil domestically,” stated Chemrez president Dean Lao Jr. “By securing a stable domestic market, the industry can foster growth with a high level of predictability and the necessary resilience to weather any swings in the export market.”
Lao emphasized that the diverse range of demand drivers makes the biodiesel industry more attractive to investors, creating a sustainable growth cycle.
D&L Industries, having completed its Batangas plant and with no major capital expenditures planned, now possesses the financial flexibility to consider building a new, less costly biodiesel facility. The company remains optimistic about the long-term prospects of the local biodiesel sector, citing the positive impact of higher biofuel blends on the economy, environment, and consumers.
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