The Philippine Biodiesel Association (TPBA) said the government should pursue the planned increase of coco-biodiesel blend in automotive diesel to 5 percent (B5) from the current 2 percent blend (B2).
The group said this will help ensure stable supply of coconuts and provide livelihood to farmers.
The group said the current combined capacity of coco methyl ester (CME) is around 850 million liters , more than enough to treat 17 billion liters of automotive diesel per year.
“There is overcapacity among CME producers in serving the current B2 blend, the capacities were built in anticipation of the shift to B5 as guided by the Energy Department’s Philippine Energy plan,” said Jun Lao, TPBA spokesperson.
The group cited the Department of Energy’s (DOE) data that showed diesel demand for this year would likely reach 13.88 billion liters which would require 694 million liters of CME if B5 is implemented.
TBPA also said local supply of coconut oil is more than enough at 1.864 million kilograms. A kilogram of coconut oil is needed to produce a liter of CME.