Department of Energy May Raise Biodiesel Blend to 3%
November 10, 2008 by Tsikot
The Department of Energy (DOE) may propose to increase the biodiesel blend to three percent in February 2009 to encourage more investors into biofuels development.
DOE director Mario Marasigan told reporters over the weekend that there are already 10 accredited biofuel manufacturers in the country.
Another two to three companies, he said, are awaiting an approval from the DOE. He identified the two new applicants as Lipitech and Unistar.
He said these 13 biodiesel manufacturers could produce up to 326 million liters which is enough to cover the three-percent blend.
“The DOE is studying that with this capacity in place, is it appropriate, rather than two percent mandated blend on February 2009, why don’t we increase it to three percent?,” he said.
He said some biodiesel manufacturers opt to sell their excess capacity abroad.
“We should maximize the use of our available biodiesel instead of importing it elsewhere,” he said.
The DOE, he said, will start consulting all concerned parties including biodiesel producers, coconut farmers, car manufacturers on this proposal within the year.
But Marasigan pointed out that this is just a study and will have to consult the stakeholders.
He said part of the study is to determine if it is appropriate to implement the three percent blend on the end of the second year of the implementation of the Biofuels Act which is Feb. 2009.
“Instead of waiting for four years for the mandated three percent, if we can do it sooner, why not?,” he said.
Initial talks with Philippine Coconut Authority and coconut farmers, he said, yielded positive response.
“They said there is not much demand for copra these days and the requirement to meet the three percent blend could be easily met. That is why they are inclined to the idea,” he said.
Increasing the blend, the DOE official said, would also open the door for the development of other feedstocks such as jatropha and malunggay.
“This will send a good signal for investors to pour in capital into biofuelds plantation and infrastructure,” he said.
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