D&L Industries Considering Buildng Second Biodiesel Plant

D&L Industries, Inc., a listed specialty food ingredient and oleochemicals manufacturer in the Philippines, is considering erecting a second biodiesel plant to meet rising demand following the government’s biodiesel blend expansion, the BusinessWorld reported on March 24.  D&L subsidiary, Chemrez Technologies, Inc., the largest biodiesel manufacturer in the Philippines, operates a biodiesel plant in Quezon City, with an annual capacity of 90 million liters.

“D&L is currently in the final stages of evaluating the risks and returns of building a new biodiesel plant, with the decision largely contingent on how well it aligns with the company’s strategic growth objectives and the goal of maximizing long-term shareholder value,” the company said in an e-mail statement over the weekend. 

“The positive regulatory developments, coupled with a greater recognition of the economic and environmental benefits of a higher biodiesel blend, present an opportune time to invest and capitalize on the industry’s potential. D&L sees this as a critical juncture in reinforcing and expanding its leadership in the industry,” the company said, adding it maintains a positive long-term outlook on the local biodiesel sector, recognizing the significant benefits that an increased biodiesel blend can offer to the economy, environment, and consumers. 

“The implementation of a higher biodiesel blend provides a robust and value-added market for coconut oil domestically. By securing a stable domestic market, the industry can foster growth with a high level of predictability and the necessary resilience to weather any swings in the export market,” Chemrez president Dean Lao Jr. told the Philippine News Agency Monday.

Since October 1 last year, all diesel fuel sold in the country has been required to contain 3% biodiesel or coco methyl ester (B3), following a government mandate to boost the coconut industry. The blend will increase to 4% (B4) by October 1 this year and to 5% (B5) by October 1 next year.