‘Biodiesel blend hike still in sight’

Despite suspension

MANILA, Philippines — Even with the impending pause, the Marcos administration remains committed to implementing higher biodiesel blends after a thorough review and once market conditions improve.

“It will be studied by the board on a regular basis because there are a lot of factors involved, not just the price of the feedstock but also its availability,” Energy Undersecretary Alessandro Sales said.

“There will be a periodic review, and the intent to increase the blend is still there,” he said.

This came after the National Biofuels Board (NBB) recommended the suspension of the scheduled hike in biodiesel blend this year amid rising costs of coconut oil.

Coconut oil is the primary feedstock for the production of coco methyl ester (CME), the biofuel component in the diesel sold in the country.

“At the beginning of 2024, the price of coconut oil in the international market was about $1,100 per metric ton. At the time of the decision of the NBB, the price was over $3,000 per metric ton,” Sales said.

Republic 9367 or the Biofuels Act of 2006 mandates that “all liquid fuels for motors and engines sold in the Philippines shall contain locally sourced biofuel components.”

The government mandated a three-percent (B3) CME blend last October. The blend was supposed to gradually increase to B4 by October this year and further to B5 by October 2026.

However, Energy Secretary Raphael Lotilla said the NBB had decided to suspend the implementation, with the resolution now being circulated for signature.

“We just promulgate or execute the decision of the NBB. Since this has already undergone consultations among the members of the board, this has practically already ended,” Lotilla said.

The NBB is an interagency body chaired by the energy chief, with members including the secretaries of agriculture, trade, finance, and labor and employment.

Given this development, Chemrez Technologies Inc., the country’s largest biofuel producer, is seeking a clear timeline on the resumption of the B4 rollout.

“The industry awaits a more definite date for the resumption of the B4 mandate from the NBB. It needs at least five months in advance to prepare for the implementation,” Chemrez president Dean Lao Jr. said.

“The progression toward B5 remains a sound and sustainable solution for the Philippines to attain its economic, environmental and health goals,” he said.