D&L’s Chemrez plans capacity boost for coco-biodiesel

CHEMREZ Technologies, Inc., a subsidiary of D&L Industries, is considering increasing its coco-biodiesel plant capacity by repurposing existing production lines as the higher blend implementation starts today, Oct. 1.

The move is being considered as the company’s coco-biodiesel plant in Quezon City is already operating at optimal capacity, Chemrez President Dean A. Lao, Jr. said during a media briefing at D&L’s plant in Tanauan, Batangas on Monday.

Chemrez could repurpose some lines for oleochemical products at the Quezon City plant to produce coco-biodiesel, Mr. Lao said, noting that oil companies have ramped up their orders to comply with the higher biodiesel blend mandate.

The Department of Energy (DoE) previously said that all diesel fuel sold in the country should have coco-biodiesel or coco methyl ester (CME) content of 3% starting Oct. 1, up from the current 2%.

The blend rises to 4% by Oct. 1, 2025, and to 5% by Oct. 1, 2026, aimed at providing price relief and support to the coconut industry.

According to Mr. Lao, Chemrez could also add more lines in the Batangas plant if the repurposed lines in Quezon City are not enough to meet the surging coco-biodiesel demand.

However, he said there is no plan yet.

“We also have to look into it to see if we can get a good return on investment,” Mr. Lao said.

He added that Chemrez is also ramping up the production lines of higher-margin coconut oil products such as medium chain triglycerides oil, which is gaining popularity in both domestic and export markets.

“We have to weigh carefully which will be more beneficial for us to expand,” Mr. Lao said.

Chemrez is the country’s largest biodiesel manufacturer with a capacity of 90 million liters per year.

“This directive from the DoE is a huge step towards progress and the development of the biodiesel and coconut industry in general,” Mr. Lao said.

“This should pave the way for greater energy self-sufficiency while collectively reducing our CO₂ footprint on the planet,” he added.

D&L Industries is engaged in product customization and specialization for the food, chemicals, plastics, and consumer products original design manufacturer industries.

The company’s principal business activities include manufacturing customized food ingredients, specialty raw materials for plastics, and oleochemicals for personal and home care use.

On Monday, D&L stocks dropped 3.43% or 23 centavos to P6.47 apiece. — Revin Mikhael D. Ochave