Chemrez Technologies Inc., the country’s pioneer oleochemicals, biodiesel and resin manufacturer, will start exporting high-value fractionated coco-methyl ester (CME) with the completion of its manufacturing plant’s third module next month.
Chemrez chief operating officer Jun Lao said the third module will produce CME of higher value than coco-biodiesel.
Applications for fractionated CME include fatty alcohols or surfactants for detergents, environment-friendly lubricants and solvents, and even additives engine oils for aeronautical and aerospace applications.
The fractionation plant has a 60,000 metric ton per year capacity, matching Chemrez’s existing raw CME capacity, but will initially be producing up to 20,000 tons CME for the export market since 40,000 tons is reserved for biodiesel which has a big domestic market.
Lao said fractionated methyl esters sell for 30 to 100 percent more than coco-biodiesel overseas since these are very specialized products with only a few producers competing in the 400,000-ton market worth $620 million to $800 million a year.
Chemrez is the only Filipino oleochemical firm producing fractionated methyl esters from its new continuous process methyl ester plant which not only produces the highest quality coco-biodiesel. It likewise allows higher “cuts” of CME for the oleochemicals market.
Lao said there are only a few competitors overseas and all of them have to import coconut oil from the Philippines since coconut oil is the only feedstock that has the qualities needed to produce these products.
“This gives Chemrez a big advantage over foreign CME producers since the Philippines is the chief source of coconut oil in the world market,” Lao said.
He noted that the rising coconut oil price and the peso’s appreciation will affect all producers since most of the world’s coconut oil is sourced from the Philippines.