Philippines: Biodiesel producer Chemrez Technologies set to repurpose its factory to increase production

Biodiesel producer Chemrez Technologies plans to repurpose its factory to boost production following the Philippines’ new mandate to increase the coco methyl ester (CME) blend in diesel fuel, the government’s official newswire, the Philippines News Agency (PNA), reported.

Effective 1 October, the new policy raises the CME blend from 2% (B2) to at least 3% (B3), driving an increase in biodiesel demand by 450 million litres per year. The blending mandate is scheduled to increase further to 4% (B4) by 1 October 2025, and 5% (B5) by 1 October 2026, according to PNA.

In response to the higher demand, Chemrez, part of D&L Industries, plans to repurpose its Quezon City facility, which currently produces 90 million litres of biodiesel annually, to expand capacity. Chemrez president Dean Lao Jr. described the new directive as a significant step for the biodiesel and coconut industries.

Lao added that the company is also exploring the possibility of building a new facility to meet the rising demand for biodiesel.

The Department of Environment (DOE) welcomed the new mandate, stating that the higher CME blend would support local coconut farmers, biodiesel producers, and other stakeholders in the coconut industry. The DOE also noted that an additional 900 million coconuts per year would be required to meet the 1% biofuel blend.