Chemrez Technologies, Inc., a subsidiary of D&L Industries, is preparing for a significant increase in demand as oil companies ramp up their orders for coco-biodiesel.

During a media tour of D&L’s new P10.5-billion plant in Batangas on Monday, Chemrez president Dean A. Lao Jr. said the company’s facilities are ready to meet the newly implemented 3 percent coco-biodiesel blend (B3) requirement.

Lao noted that the company might consider repurposing some production lines for other oleochemical products to boost biodiesel output, especially as the government plans to raise the blend to 4 percent (B4) next year and 5 percent (B5) by 2026.

“If repurposing our Quezon City facilities isn’t sufficient to meet the growing demand, we may consider adding new lines in Batangas,” Lao explained. 

However, he acknowledged that new lines would take more time to establish compared to repurposing. 

Lao added that Chemrez is also scaling up production of higher-margin coconut oil products, such as Laurin MCT, which is gaining popularity in both local and international markets. 

3% blend equals 50% jump

“We have to weigh carefully which will be more beneficial for us to expand,” Lao said.

As the country’s largest biodiesel manufacturer, Chemrez expects that the shift to a 3 percent blend will result in a 50 percent increase in biodiesel volume, potentially boosting both margins and profitability for the industry.

Currently, there are about 14 biodiesel manufacturers in the Philippines.