DOE firms up plans for 5% biodiesel blend

MANILA, Philippines - The Department of Energy (DOE) is firming up plans to implement the higher biodiesel blend of five percent from the current two percent as required by the Biofuels Acts of 2006.

In an interview with reporters, Energy director for the Oil and Industry Management Bureau, Zenaida Monsada said the Energy department has asked the National Economic and Development Authority (NEDA) to conduct an “impact study” for the implementation of the higher blend.

The study aims to assess the demand and supply of coconut biodiesel, the logistics, as well as the impact on prices.

“We have asked the NEDA to conduct an impact study to know the effect on consumers,” Monsada said.

She said while the government is aiming to have the higher blend implemented within the year, it needs to thresh out the details.

There would also be nationwide public consultations starting next month and a test run on public utility jeepneys for five days to see if their engines would run smoothly using the higher blend, Monsada said.

Agriculture Secretary Proceso Alcala announced early this month that the National Biofuels Board, the interagency group tasked to implement the National Biofuels Law, has approved the increase in the mandated biodiesel blend to five percent from two percent.

Chemrez Technologies welcomed the development, saying that the NBB’s move is a significant step in accomplishing the goal the company set out to achieve a few years ago – to develop and market sustainable products that benefit the Philippines and the environment.

Industry players such as Chemrez said the blending of coco biodiesel into diesel would reduce the country’s dependence on imported oil, in accordance with the Philippine Energy Plan that aims to achieve energy independence within the next decade.

Furthermore, Chemrez said simply blending five percent coco biodiesel into diesel can save the Philippines an estimated P13 billion worth of imported crude oil every year. 

Under the law, the amount of coconut oil for fuel to be blended with diesel may be increased taking into account considerations such as domestic supply and availability of locally sourced biodiesel.

However, since 2009, biodiesel has been blended at two percent with diesel fuel.

The NBB is chaired by the Secretary of the Department of Energy and comprised by the heads of the Department of Trade and Industry, Department of Science and Technology, Department of Agriculture, Department of Finance, Department of Labor and Employment, Philippine Coconut Authority, and the Sugar Regulatory Administration.

The NBB aims to help the local coconut industry, which is currently facing challenges from cheaper palm oil competition.