Department of Energy facade from DOE / FILE
The Department of Energy (DOE) may initiate talks with the National Power Corp. (NPC) on the possibility of increasing the biodiesel blend for fuel used in power generation.
According to DOE assistant secretary Mario Marasigan, the agency may use the facilities of NPC to test if the use of a 55 percent biofuel blend for power generation is feasible.
The NPC currently operates a total of 281 small power utilities group (SPUG) power plants across the country, particularly in areas not linked to the main transmission grid and sourced their power through diesel-fired generators.
READ: Increased biodiesel use a win for industry and environment, says D&L
“We are looking at all diesel facilities. Of course, we can possibly use NPC’s facilities in conducting tests, if necessary,” he told reporters in a message late on Tuesday.
Marasigan said that since this remains under study, “all possibilities” were on the table, including the potential involvement of diesel-fired plants of the private sector.
“Using 55 percent biofuel blend will correspond to converting a diesel engine into a biodiesel engine, similar to a biomass power plant,” he added.
Aside from reducing carbon emissions, the DOE official said hiking the blend may also soften the impact of expensive imported fuel prices.
READ: Marcos: Boost salt, biodiesel, coconut industries to create more jobs
In its circular issued in May, the DOE mandated downstream oil industry players to increase the coco methyl ester (CME) blend to 3 percent, from the current 2 percent, in diesel fuel sold nationwide, effective October 1, 2024. The mix would then be raised to 4 percent by next year, and 5 percent by 2026.
“The increase in the CME blend is expected to create additional markets for coconut farmers, biodiesel producers, and other stakeholders in the coconut industry, with around 900 million additional nuts as feedstocks to produce around 100–120 million liters of additional CME requirements to satisfy a 1 percent mandatory increase in the CME blend,” the DOE earlier said.
Fuel retailers may also opt to increase the ethanol blend in all gasoline fuel by 20 percent from the current 10 percent to slash local pump prices.