Flying V plans 2% biodiesel blend

Flying V, one of the most aggressive small oil players in the country, is bent on taking the lead in implementing the two-percent blend on biodiesel two years ahead of its mandatory compliance, a company official said.

Flying V chief operating officer Paul Tanjutco told reporters during the Department of Energy’s spot visit to monitor the compliance of oil firms to the Biofuels Act that since his company had taken the lead in the implementation of the one percent biodiesel blend, the possibility of making a step ahead for the B2 or the two-percent biodiesel blend is part of their future endeavor.

"We are currently working on that direction, having been recognized as a pioneer in biodiesel," Tanjutco said. The current standards for biodiesel is only for a one-percent blend.

DOE director Zenaida Monsada, for her part, said a technical working committee is currently in the process of drawing up standards for higher biodiesel blends.

Monsada said even without the standards, there were already feelers from industry stakeholders, particularly car manufacturers, to prepare to introduce vehicles that could run on higher biofuels blend.

The DOE official noted that while the Biofuels Act only mandates for an eventual two percent CME (cocomethyl ester) blend on diesel products, international fuel charters already accept a five-percent biodiesel blend.

"We already foresee this.  We see it coming because some of the oil players might want to take a step ahead of the other players. As long as the standards are there, they can do that," she said.

Tanjutco, on the other hand, admitted that they are carefully reviewing the plan to implement ahead the B2. "We are very careful in introducing B2.  We want to make sure that this will not be a burden to the consumers," he said.

But Tanjutco pointed out that Flying V was able to offer B1 to consumers at no additional cost for two years.

Flying V’s alternative fuels department head Tanya Samillano, meanwhile, said they see prices of CME going down with the entry of more suppliers.

"We have enough supply of CME.  With a requirement of only 164,000 liters per day, there is already an existing one million liters supply in the market. We have oversupply," Samillano said.