Local coconut farmers are set to benefit from D&L Industries’ plan to build a new biodiesel factory under its wholly owned subsidiary, Chemrez Technologies, Inc. (CTI), the country’s largest biofuel manufacturer. This expansion is driven by the government’s mandate to increase the coco methyl ester (CME) blend in diesel fuel from 3% (B3) to 4% (B4) starting October 1.
According to Chemrez President Dean Lao Jr., the implementation of a higher biodiesel blend will provide a stable and value-added market for coconut oil domestically. By securing a predictable local demand, the industry can better withstand fluctuations in the global export market. He emphasized that increasing biodiesel usage creates a positive investment climate, encouraging growth in both the agriculture and manufacturing sectors.
With the completion of D&L’s Batangas plant, the company now has the financial flexibility to invest in a new biodiesel facility, which will require a smaller capital investment than its previous projects. This move aligns with D&L’s long-term strategy to strengthen biofuel production and support government initiatives on renewable energy and sustainability.
D&L highlighted that a stronger biodiesel sector will bring multiple economic benefits, particularly for the millions of Filipinos whose livelihoods depend on the coconut industry. The company also stressed the environmental advantages of biofuels, such as reducing carbon emissions and promoting sustainable energy sources. Additionally, boosting local biofuel production can help reduce the country’s reliance on imported fossil fuels, stabilizing the foreign exchange reserves and providing a more predictable economic environment.
By developing the biodiesel industry, D&L Industries is positioning itself as a key player in sustainable energy while ensuring economic opportunities for local farmers and businesses.
