Coconut stakeholders seek hike in biodiesel blend to 5%

MANILA, Philippines — The United Coconut Associations of the Philippines (UCAP) said the time is ripe for government to raise coco methyl ester (CME) content of biodiesel from two percent (B2) to five percent (B5) especially amid rising diesel prices.

“Now is the time to implement the long-delayed increase in biodiesel blend after eight straight weeks of diesel price hikes,” UCAP chairman Dean Lao said during the third World Coconut Congress.

“The National Biofuel Board (NBB) has to decide…Today biodiesel is cheaper than diesel. Diesel is around P60 to P70 per liter. Biodiesel is less than P60 per liter, probably between P55 to P60,” he said.

The NBB is the body tasked to study and implement Republic Act 9367 or the Biofuels Act of 2006 which mandates that all liquid fuels for motors and engines sold in the Philippines shall be blended with biofuels.

The board is chaired by the Department of Energy (DOE) Secretary and is supported by the administrator of the Sugar Regulatory Administration (SRA) as vice chair on bioethanol concerns, and the administrator of the Philippine Coconut Authority (PCA) as vice chair for biodiesel concerns, with representatives from the Departments of Agriculture, Trade and Industry, Science and Technology, Finance, and Labor and Employment.

Latest DOE data showed diesel prices range between P58.95 to P72.20 per liter while diesel plus prices are around P64.45 to P82.30 per liter.

Raising the biodiesel blend from B2 to B5 was supposed to take place in 2020 but was delayed due to the absence of assurances on the sufficiency of biodiesel supply and logistical limitations brought about by the COVID-19 pandemic.

On the sufficiency of supply, Lao said the country’s coconut oil output is enough even for higher blends at 12 and 15 percent.

“UCAP has been urging government to increase the blend…In fact, in the last four years, the DOE has been asking if there is enough coconut oil. Our answer is, in fact, we [can push] for B12 or B15 if we want [because] we have that much coconut oil,” he said.

Moreover, a higher blend would mean less importation of diesel and stir more demand for local coconut oil, thereby supporting the country’s coconut industry.

“From B2 to B5, that is around 280 million liters of biodiesel. It can make a huge amount of difference to the coconut industry, that becomes value added market over time. A mandate creates an instant demand out of nothing,” Lao said.

Meanwhile, UCAP vice chairman Marco Reyes raising the biodiesel blend will generate savings, improve mileage, and reduce pollution.

“Can you imagine just by increasing the blend to five percent that particulate matter in air pollution goes down by 83 percent. And this is equivalent to P1.5 trillion in savings just by increasing it to five percent,” he said.