news/updates
Adequacy of biodiesel supply assuredMarch 24, 2007
There is no need to panic when it comes to the concern that coco methyl ester producers would not be able to meet the country’s biodiesel requirements should a 2 percent or B2 biodiesel blend be mandated, because there are enough producers to fill in the demand, Chemrez chief operating officer Dean A. Lao Jr. told Business Mirror today.
Lao said in an interview that there are already nine coco methyl ester producers in the country, and that existing plant capacities can supply even up to three-percent blend or B3.
“If all coconut supply is to be turned into biodiesel, the country can even obtain a B20 blend,” Lao said.
According to the Department of Energy (DoE), biodiesel diesel production as of January this year has already reached 111.30 million liters a year from just three producers such as Chemrez, Senbel Fine Chemicals Inc. and Romtron Philippines.
Ideally, according to Lao, a one-percent or B1 blend will require them to use 60,000 metric tons of coconut oil to produce around 70 million liters of coco methyl ester in a year. Coconut oil production is estimated to reach 1.1 million tons this year.
Consumption of B1 biodiesel blend, earlier projected to increase 70 million liters, is expected to increase to 70 million liters upon implementation of the 2006 Biofuels Act.
“A two-percent or B2 is seen to reach around 130 million liters a year, once implemented, and will require an annual coconut oil production of around 115,000 metric tons, “ Lao said.
