The plan to build a second Chemrez coco-diesel plant remains on the table and will push through once the government lifts the suspension on the implementation of the 4 percent and 5 percent biodiesel blends.

Chemrez Technology Inc. (CTI), a subsidiary of D&L Industries Inc., currently has a biodiesel plant in Batangas. It is currently the largest manufacturer of biodiesel in the domestic market.

“I would say it's probably a matter of when, not if. Meaning, there's a high probability we will make a second plant. But, in terms of when, how big, how much we'll spend, we still do not have that information since we are still in the planning stage,” D&L Industries Inc. president and chief executive officer Alvin Lao said in a statement Thursday.

“We believe, for many reasons, it makes sense for us to consider a second plant even if the increase in the mandated blend has been postponed.”

The National Biofuels Board, in an advisory on July 17, announced the suspension of the implementation of the 4 percent (B4) and 5 percent (B5) biodiesel blends supposedly set for implementation by Oct. 1, 2025 and Oct. 1, 2026, respectively.

The decision, it said, was made “in view of the anticipated significant impact on pump prices and the potential inflationary effects on the national economy" as coconut oil prices remain high due to supply challenges faced by coconut farmers.

D&L earlier said it remains optimistic on the long-term outlook of the country’s biodiesel sector, due to its benefits to the economy, environment, and consumers. 

CHEMREZ PHOTO