Chemrez Technologies Inc., the country’s largest biodiesel producer and a subsidiary of D&L Industries Inc., is planning a second biodiesel facility—but its construction hinges on the Philippine government lifting the suspension of the mandated 4 percent biodiesel blend (B4).
D&L president and CEO Alvin D. Lao confirmed the project remains in the planning phase and is contingent on regulatory developments. “It’s probably a matter of when, not if,” Lao said, noting that while the B4 mandate was postponed, it has not been canceled, maintaining a strong case for expanding production capacity.
The National Biofuels Board in July suspended the B4 and B5 (5 percent)mandates—originally set to roll out in October 2025 and 2026 respectively—citing high coconut oil prices and inflationary concerns. Chemrez uses coconut oil as its primary biodiesel feedstock.
With D&L’s Batangas manufacturing facility recently completed and no other large-scale capital projects in the pipeline, the company said it has the flexibility to invest in a new biodiesel plant, which would require significantly less capital.
Despite near-term risks, D&L believes the strategic importance of biodiesel and a supportive regulatory backdrop will sustain long-term demand. Chemrez previously led efforts to establish biodiesel viability in the Philippines, culminating in Asia’s first continuous-process coconut biodiesel plant in 2006.
