Industry capacity seen sufficient for up to 7% coco-diesel blend

BIODIESEL PRODUCERS said they are prepared should the Philippines intend to increase the coconut content of the biodiesel blend, noting it has the capacity to supply more after recent investments.

In a statement over the weekend, the Philippine Biodiesel Association (TPBA) said the industry’s current capacity is adequate to service up to a 7% (B7) blend if the government mandates it.

Currently, all diesel fuel sold in the Philippines contains 3% coco methyl ester (CME), a fuel derived from coconut oil.

TPBA said 14 biodiesel facilities use 100% domestically sourced coconut oil to produce CME.

Last week, Philippine pump prices adjusted by as much as P38.50 per liter with the Iran war continuing to disrupt the fuel supply.

Republic Act (RA) No. 9367 or Biofuels Act of 2006 requires all liquid fuels for motors and engines to contain a fixed percentage of biofuel such as bioethanol and biodiesel as a means of transitioning to cleaner energy, cutting dependence on imported oil, and supporting agriculture.

Senators are also weighing amendments which would allow the President to suspend or adjust the mandatory blend.

Rather than suspending the implementation, the group has urged legislators to strengthen it further instead.

“Given RA 9367’s multiplier benefits — from fortifying the coconut industry, to increasing mileage and proven emission reductions, we call for the continued implementation of the blending mandate and to maintain local sourcing of biofuels, which supports millions of coconut farmers who form this country’s backbone,” TPBA Executive Director Ramon Taniola said.

The TPBA said the law remains “the country’s most reliable defense against its inherent vulnerability with imported fuel.”

“Its continued implementation ensures the country not only directly supports agricultural communities but also helps shift the country’s position towards reducing import dependence,” the group said.

The coco-biodiesel blend was supposed to increase to 4% (B4) by Oct. 1, 2025, and further to 5% (B5) a year after. However, the National Biofuel Board recommended the suspension of B4 due to the high cost of coconut oil. — Sheldeen Joy Talavera