PCA Wants to Raise Biodiesel Blend by August this Year

The Philippine Coconut Authority (PCA) wants the National Biofuels Board (NBB) to finally raise the Coco Methyl Ester (CME) content of biodiesel blend currently sold in the domestic market starting August, a move that has been stalled for several years. The objective is to help coconut farmers currently suffering from low copra prices.  “The higher CME content in our biodiesel blend could significantly increase the demand for copra and coconut oil, making their prices more buoyant,” PCA Administrator Romulo dela Rosa said.

Under the Philippine Energy Plan 2012 to 2030, the biodiesel blend should by now be at 5 percent; currently it is still at 2 percent. The blend should increase to 10 percent in 2020 and to 20 percent in 2030.  The PCA Administrator is urging NBB to “act fast” before copra and coconut oil prices further plummet to crisis level, suggesting a staggered basis increase starting August. “The first increase can be from 2 percent to 3 percent starting August 1 this year,” he said, adding NBB should decide before end of this year whether to further increase the blend to 5 percent CME content or maintain the 3 percent until 2020. 

It will be recalled that in 2012 the Department of Energy (DOE) said it was looking to review the impact of a possible increase in the biodiesel blend to five percent (B5) requested by the Department of Agriculture (DA).  In 2015, NBB tapped an institution within the University of the Philippines Los Baños (UPLB) to study the impact of B5 implementation.  DBB is composed of representatives from the DOE, DA, PCA, Department of Agrarian Reform, Department of Science and Technology, Department of Environment and Natural Resources, and Sugar Regulatory Administration