Leon Lao, Chemrez president, said the biodiesel industry is still new but with the Senate approval of the biofuels bill, the use of biodiesel is expected to increase and help the country save money from the importation of crude oil.
Lao said the bill will now be placed under deliberation at the bicameral conference committee for final approval before it is signed into law by President Arroyo.
"We join the biofuels industry in welcoming the Senate’s approval of the biofuels bill. Our congratulations go to the senators for their sound judgment and political will in passing this milestone legislation. It is only a matter of time before it passes through the bicameral conference committee and is signed into law by the President of the Philippines," Lao said.
He assured the people that the use of biodiesel will help reduce air pollution with lesser smoke emission from vehicles using biofuels.
Chemrez is a Filipino-owned company based in Libis, Quezon City, with a current capacity to produce 60 million liters a year to cover local demand and even export to other countries.
Lao said the company had invested P650-million to construct a biodiesel plant in Quezon City and the firm has allocated P350 million for the acquisition of raw materials and operating expenses.
Chemrez expects to increase the production of biodiesel in the coming years to be able to export to France, Germany, The Netherlands and Italy.
Lao said Chemrez can manufacturer biodisel extracted from coconut which is cheaper compared to biofuels extracted from grape seeds or corn.
Chemrez is bound by the laws of the Board of Investment (BOI) to export at least 50 percent of its output to enjoy fiscal and nonfiscal incentives on a pioneer status such as a six-year income-tax holiday and exemption from import duties and wharfage fees.
The BOI, however, relaxed this policy and allowed Chemrez to initially export most of its output since the biofuels bill mandating the one-percent biodiesel blend local diesel is still pending Congress.