DOE may delay increase in biodiesel blend

MANILA, Philippines - The Department of Energy (DOE) may delay the implementation to 2016 of the higher blended biodiesel oil to five percent (B5) from two percent, its top official said.

DOE OIC Secretary Zenaida Monsada said the decision to implement the higher blended diesel oil this year may still be made, but enforcement may come next year.

This is because the agency is awaiting the results of an impact study started earlier this year.

“We’re still waiting for the results of the study. So far, we haven’t received reports,” Monsada noted.

In 2013, the DOE had asked the National Economic and Development Authority (NEDA) to conduct an “impact study” for the implementation of the higher biodiesel blend of five percent from the current two percent.

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

Meanwhile, the National Biofuels Board (NBB) had commissioned last February the University of the Philippines Los Baños (UPLB) to do further study on the impact of the higher blended biodiesel on the coconut industry, to ensure farmers would benefit from the B5 implementation.

The NBB is composed of representatives of the Energy, Agriculture, Agrarian Reform, Science, Labor and Environment departments, the Philippine Coconut Authority and the Sugar Regulatory Administration.

The Biofuels Act of 2006 mandates the amount of coconut oil for fuel to be blended with diesel may be increased taking into account such considerations as domestic supply and availability of locally sourced biodiesel.

Currently, the Philippines uses coconut as feedstock for biodiesel. 

But since 2009, the biodiesel blend has been pegged at two percent.

By 2015, the biodiesel blend should be at five percent, and would be raised to 10 percent and 20 percent by 2020 and 2030, respectively.

With the projected increase in biodiesel blend rate in the coming years, Economic Research Institute for Asean and East Asia (ERIA) said the Philippines should find alternative crops, such as oil palm.