The Philippines mandates higher biodiesel blend beginning Oct. 1

Following the recommendations by the National Biofuels Board, the Philippines’ Department of Energy has released guidelines for adopting a higher biofuels blend.

This move aims to decrease dependence on imported fuels, reduce greenhouse-gas emissions and bolster the local biodiesel and bioethanol sectors.

Under the new guidelines outlined in Department Circular No. 2024-05-0014, downstream oil-industry participants are required to implement a 3 percent coco methyl ester (CME) blend in all diesel fuel sold nationwide, beginning Oct. 1.

This percentage will gradually increase to 4 percent by Oct. 1, 2025, and further to 5 percent by Oct. 1, 2026.

The increase in the CME blend is expected to create additional market for coconut farmers, biodiesel producers and other stakeholders in the coconut industry, with around 900 million additional nuts as feedstocks to produce between 100 million and 120 million liters (26.4 million to 31.7 million gallons) of additional CME requirements to satisfy a 1 percent mandatory increase in the CME blend.

Moreover, based on a 30,000-kilometer on-road test with a higher CME blend of 5 percent, an increase of around 10 percent in mileage corresponds to an estimated net savings of 4.17 Philippine pesos (7.2 cents U.S.) per liter of diesel.

Meanwhile, downstream oil-industry participants may have the option to raise the ethanol blend in all gasoline fuel from the current 10 percent to 20 percent, to reduce domestic pump prices.

Increasing the ethanol blend to 20 percent could bring about an estimated decrease of approximately 3.21 Philippine pesos (5.5 cents U.S.) per liter in the gasoline pump price.

“Implementing the higher biofuels blend is a win-win solution as we promote economic growth, uphold environmental stewardship and strive for cleaner energy utilization,” said Raphael P.M. Lotilla, energy secretary for the Philippines. “It is also about investing in a future where sustainability drives progress.”

To ensure a smooth and timely transition to higher biofuel-blend percentages, the downstream oil industry must maintain sufficient storage capacity, blending facilities, transport systems and dedicated storage tanks and dispensing pumps.

The Biofuels Act of 2006 mandates that all liquid fuels for motors and engines sold in the Philippines be blended with biofuels.

The current ethanol blend for gasoline has remained at 10 percent since 2012, while the CME blending last increased to 2 percent in 2007.