Chemrez Technologies Inc., the leading producer of coco methyl ester (CME) in the country, has thrown its full support for the government’s decision to increase the biodiesel blend by one percent as a means to alleviate the impact of high fuel prices.
Manila Standard reported that Chemrez President, Dean Lao Jr., welcomed the decision and assured that there is ample capacity to accommodate the rise in the biodiesel blend from two percent (B2) to three percent (B3).
Lao also highlighted the ready availability of feedstock and the well-prepared production capacities for CME, all set to back the expanded mandate effectively.
Energy Secretary Raphael Lotilla has already received the President’s directive to increase the CME or coco-biodiesel blend from 2 percent to 3 percent.
The energy secretary further revealed that the total coconut production in the Philippines amounts to 15 billion nuts, and the additional one percent blend would require only 2.6 billion nuts.
He also emphasized that raising the blend could lead to a reduction in the cost of coco methyl ester due to the expansion of the CME market. Consequently, it is anticipated that the pure diesel landed price will align with that of coco methyl ester per liter.
Meanwhile, Lao highlighted the numerous benefits that consumers can anticipate with the B3 mandate, including improved mileage, reduced pollution, import substitution, and value addition to coconut oil. He emphasized that these advantages come at no practical cost to the government and would greatly benefit the country.
Additionally, the President has given the green light for the voluntary implementation of a 20-percent ethanol blend for gasoline. This new blend is slated for formal approval by the end of 2023. As of now, gasoline is mandated to contain a 10-percent blend of ethanol.
Energy Secretary Lotilla clarified that the proposed increase to 20% will be voluntary. This is essentially a price mitigation strategy, due to the fact that ethanol, particularly imported ethanol, is less expensive than gasoline.
Increasing the ethanol blend will result in reduced pump prices since a higher proportion of cheaper ethanol will be used. While local ethanol costs P79.49 per liter–higher than imported ethanol, which is priced at P41.84 per liter– local production can only support 48 percent of the 10-percent blend.
