Higher biodiesel blend to start in October: DOE

By Kris Crismundo

May 20, 2024, 7:51 pm

MANILA – The Department of Energy (DOE) announced Monday the downstream oil industry players will increase their biodiesel mix by October this year.

Under Department Circular 2024-05-0014, the required coco methyl ester (CME) blend by Oct. 1 for all diesel fuel sold across the country will be at 3 percent.

This will be gradually increased to 4 percent by Oct. 1, 2025, and to 5 percent by Oct. 1, 2026.

"Implementing the higher biofuels blend is a win-win solution as we promote economic growth, uphold environmental stewardship, and strive for cleaner energy utilization. It is also about investing in a future where sustainability drives progress,” DOE Secretary Raphael Lotilla said in a statement.

The DOE said the higher CME blend will create additional market for local coconut farmers, biodiesel producers, and other stakeholders in the coconut industry.

It added the mandatory 1-percent increase in CME blend will require 900 million additional nuts as feedstocks to produce 100 million to 120 million liters.

“Based on a 30,000-kilometer on-road test with a higher CME blend of 5 percent, an increase of around 10 percent in mileage corresponds to an estimated net savings of PHP4.17 per liter of diesel,” DOE said.

Moreover, the downstream oil industry players have the option to increase the ethanol blend in all gasoline fuel to 20 percent from the current 10 percent to reduce the domestic pump prices of around PHP3.21 per liter. (PNA)