Increased biodiesel use a win for industry and environment, says D&L
MANILA, Philippines —The Lao family-led D&L Industries Inc., the country’s biggest biggest biodiesel producer, welcomed the government’s plan to significantly increase the mandated biodiesel blend after a nearly decade-long delay, calling its implementation a “win” for the industry and environment.
D&L, through wholly-owned subsidiary Chemrez Technologies Inc., is a regional pioneer in biodiesel when it built its Coco Methyl Ester plant in 2006.
Shares of D&L rose 2.34 percent to P6.55 each—a nearly three-month high on bets the new government mandate will boost sales.
“This directive from the [Department of Energy] is a huge step towards progress and the development of the biodiesel and coconut industry in general,” Chemrez president and CEO Dean Lao Jr. said on Friday.
READ: Coconut industry wants bigger biodiesel share
“This should pave the way for a greater energy self-sufficiency while collectively reducing our CO2 footprint on the planet,” he added.
D&L said the DOE circular mandates an increase in biodiesel blend from 2 percent to 3 percent effective July 1, 2024. This will further rise to 4 percent effective July 01, 2025 and 5 percent by July 2026.
“A higher biodiesel blend means displacing imported petrochemical fuel with locally produced, environmentally-friendly, and sustainable fuel,” the company said.
READ: PH expected to hit biofuel blend goal with new policy tweaks
It added that consumers will also benefit since offsetting imported petrochemical fuel could lower pump prices.
“For over a decade already, the biodiesel industry has been operating in an oversupply situation with industry utilization just around 40 percent This has resulted in a highly competitive landscape and depressed margins for the industry players,” D&L said.
“With the proposed increase in blend, the industry expects a better utilization and overall profitability which is expected to trickle down to the various segments of the local economy,” it added.
