Local coconut farmers are expected to benefit from D&L Industries’ plan to build a new biodiesel factory for its wholly owned subsidiary Chemrez Technologies, Inc. (CTI).
D&L over the weekend announced that it is looking into investing in a second biodiesel plant for Chemrez, the country’s largest biofuel manufacturer.
The demand for biofuel is expected to rise due to the mandated hike in coco methyl ester (CME) blend for all diesel fuel. From the current 3 percent (B3) mix, CME blend this year will increase to 4 percent (B4) starting Oct. 1.
“The implementation of a higher biodiesel blend provides a robust and value-added market for coconut oil domestically. 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,” Chemrez president Dean Lao Jr. told the Philippine News Agency Monday.
Lao added that a diverse range of demand drivers makes the industry more appealing to investors, which is “creating a positive loop and condition with which it can continue to grow at a more sustainable pace.”
D&L said with the completion of its Batangas plant and no significant capital expenditures on the horizon, it now has the financial flexibility to consider building a new biodiesel facility, which would require a smaller investment than the Batangas factory.
Chemrez’s parent company also has a rosy outlook on the local biodiesel sector in the long term, as higher biofuel blend has significant impact on the economy, environment and consumers.
“By developing the industry, several facets of the economy are set to benefit. With at least 20 percent of the Philippine population directly or indirectly benefiting from the coconut industry, the potential for economic value creation in the form of additional investments and jobs in both the agriculture and the manufacturing sectors are significant,” D&L said.
Likewise, D&L emphasized the need to strengthen the use of indigenous fuel to reduce the country’s dependence on imported fossil fuels.
“With less reliance on imported fuels, the fluctuations in global oil prices would have a lesser impact on the country’s foreign exchange reserves. This stabilization can lead to a more predictable economic environment for currency management,” it said. (PNA)
