DOE eyes early hike in biodiesel blend

MANILA, Philippines - The Department of Energy (DOE) wants to implement the higher biodiesel blend of five percent next year instead of the original 2015 target even as local petroleum firms say they are not ready.

In the third and last public consultation yesterday conducted by the National Biofuels Board (NBB) and the DOE officials said the government is looking at implementing the higher blend next year because there is sufficient supply in the country.

The Biofuels Acts of 2006 requires the increase in biodiesel blend to five percent from the current two percent.

“We’re looking at next year. We have more than enough supply that is why we want to accelerate it to next year instead of 2015,” said Oil and Industry Management Bureau director, Zenaida Monsada.

However, Philippine Institute of Petroleum executive director Sally Monteiro said the industry players were hoping for more time to implement the higher biodiesel blend instead of next year.

 â€œWe are hoping for a more extensive consultation. We just want to make sure about the timing. There are still a lot of players that are non-compliant with the B2 (two percent biodiesel blend). We hope there should be more extensive monitoring,” she said.

But Monsada said nothing is final yet and that the 2014 target is an aspirational goal. In the end, she said, it would depend on the readiness of local players

Industry players such as Chemrez Technologies 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.