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Philippines: Higher biodiesel blend to start in October

Philippines: The Department of Energy (DOE) announced on Monday that downstream oil industry players will increase their biodiesel mix by October this year.

According to Department Circular 2024-05-0014, the required coco methyl ester (CME) blend for all diesel fuel sold across the country will be set at 3 percent starting October 1. This blend will gradually increase to 4 percent by October 1, 2025, and to 5 percent by October 1, 2026.

“Implementing the higher biofuels blend is a win-win solution as we promote economic growth, uphold environmental stewardship, and strive for cleaner energy utilization. It is also about investing in a future where sustainability drives progress,” DOE Secretary Raphael Lotilla stated.

The DOE highlighted that the higher CME blend will create additional market opportunities for local coconut farmers, biodiesel producers, and other stakeholders in the coconut industry.

The department noted that the mandatory 1-percent increase in CME blend will require an additional 900 million nuts as feedstock to produce between 100 million and 120 million liters of biodiesel.

“Based on a 30,000-kilometer on-road test with a higher CME blend of 5 percent, there is an approximate 10 percent increase in mileage, translating to an estimated net savings of PHP4.17 per liter of diesel,” the DOE reported.

Additionally, the downstream oil industry players have the option to increase the ethanol blend in all gasoline fuel to 20 percent from the current 10 percent, potentially reducing domestic pump prices by around PHP3.21 per liter.



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