Chemrez President Dean Lao Jr. told reporters on Monday plans will depend on future increases in the blend requirement.
As the largest biodiesel producer in the country, the 3 percent mandate is expected to boost biodiesel volumes by 50 percent, improving margins across the industry.
With plans to raise the blend to 4 percent in 2025 and 5 percent by 2026, demand is projected to rise. If necessary, Chemrez may expand its P10.5-billion Batangas plant to meet growing demand, Lao said.
Management’s view
“We have to weigh carefully which will be more beneficial for us to expand,” said Lao.
Lao noted that food and other applications yield higher margins, making them more attractive for profitability while biodiesel, despite its lower margin, provides higher volume.
“This directive from the [Department of Energy] is a huge step towards progress and the development of the biodiesel and coconut industry in general,” said Lao.
He added that, “This should pave the way for a greater energy self-sufficiency while collectively reducing our [carbon] footprint on the planet.”
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
