D&L Industries, Inc., through its wholly owned subsidiary Chemrez Technologies, Inc. (CTI), is firming up plans to build a second biodiesel plant to prepare for an expected spike in demand once the government lifts the four percent blend suspension.

“We announced that we are planning and studying that second plant. We’re still there. It's still in the planning stages,” D&L President and CEO Alvin D. Lao said at a recent media briefing.

“I would say it's probably a matter of when, not if. Meaning, there's a high probability we will make a second plant. But, in terms of when, how big, and how much we'll spend, we still do not have that information since we are still in the planning stage,” he added.

Lao emphasized that D&L is serious about building a second biodiesel plant, noting that while the mandated blend increase has only been postponed and not cancelled, it will eventually take effect—making additional capacity a logical move for the company.

CTI, the country’s largest biodiesel manufacturer, has financial flexibility to build a second plant with lower capital requirements following the completion of its Batangas facility.

The company acknowledged risks but maintained that biodiesel’s essential role and a supportive regulatory environment ensure steady demand.

The National Biofuels Board earlier suspended the implementation of the four percent and five percent biodiesel blend mandates, originally scheduled to take effect in October and October 2026, as coconut oil prices remain high due to supply challenges.

The coconut industry supports about 20 percent of Filipinos, while higher biodiesel use is expected to generate more jobs and investments.

Coco-biodiesel also cuts carbon emissions by 78 percent compared with petroleum diesel and could improve mileage by 10 percent, leading to consumer savings.