Local agricultural stakeholders said the government’s thrust to increase existing biofuel blends will benefit farmers as it will create additional market and income.
Stakeholders expressed their optimism after the Department of Energy (DOE) said an increase in local biofuels blend will soon be implemented as part of government efforts to mitigate high fuel prices.
DOE Secretary Raphael Lotilla announced on Tuesday that the current 10 percent ethanol blend (E10) on gasoline will be voluntarily increased to 20 percent (E20) while the current 2 percent (B2) coco methyl ester (CME) blend on diesel will be mandatorily adjusted to 3 percent (B3).
Dean Lao Jr., United Coconut Association of the Philippines chairman, said the move has long been championed by the industry especially with its benefits to consumers.
“The feedstock is available and the capacities for making CME are ready to support the increase in mandate. We expect many benefits to come with a B3 mandate: mileage improvement; lower pollution; import substitution and value adding of coconut oil. These benefits will come with no practical cost to the government, yet have extensive benefits to the country,” Lao said in a statement.
Lao also serves as president of Chemrez Technologies Inc., the country’s biggest producer of premium CME.
Meanwhile, Bernie Cruz, Philippine Coconut Administration head, said the local coconut industry supports the shift to B3 but noted that the country will benefit further with B5.
Cruz said in a meeting last Tuesday, stakeholders agreed that local coconut production is capable of meeting a biodiesel blend up to B5.
“If they can prove that B3 is achievable… we will go to B5 eventually. It will greatly help coco farmers especially that its utilization will increase. This will be supported by massive replanting, which will help farmers earn more,” Cruz said.
