Philippine Biofuels Industry Justifies B5 in Diesel

The Philippine Biodiesel Association (TPBA) raised a proposal to increase the percentage of the biodiesel component blend in locally available diesel to 5 percent by 2021 from the current level of 2 percent.  The group, which is comprised of 11 companies, is pushing for gradual adjustment to 3 percent by end of 2019 to 4 percent by 2020, and 5 percent by 2021.
    
Blending coco-biodiesel or coconut methyl ester (CME) in local diesel started in 2007 upon the implementation of Republic Act No. 9367 or the Biofuels Act of 2006. On the first year of the law, diesel was blended with 1 percent CME.  It was increased to 2 percent in 2007 and has remained at that level since.  
 
At a press briefing held last week, Rafael Diaz, president of Asian Institute of Petroleum Studies, Inc., said coconut oil is far more superior as a biodiesel feedstock compared to other oils, which would make local biodiesel better in quallity.  “Coco-biodiesel makes diesel fuel burn easily and completely, leading to more power and mileage improvement”, Diaz explained. “If there is a 10% mileage improvement and diesel cost is at P40, you can effectively save P4 per liter”.  He also reminded that CME-blended diesel will burn more completely, helping maintain a cleaner exhaust. 

A proposed 5 percent blend of CME in automotive diesel from the current level of 2 percent will take almost a third of local coconut oil production.  This would help ensure a steady income for coconut farmers as we increase the inelastic demand for coconut oil locally. United Coconut Association of the Philippines Executive Director Yvonne V. Agustin said, “Local demand for coconut oil in the manufacturing industry is not that big.  Currently, our country’s coconut oil export is much bigger than local consumption.  Increasing local demand will help manage our present glut in coconut oil production.”
 
This and more issues and opportunities will be highlighted in the 2nd World Coconut Congress Conference and Exhibition to be held on August 27-29 at the SMX Convention Center Manila, in Pasay City, details at www.worldcoconutcongress.com.