Coconut Industry Wants Increase in Coco Biodiesel Blend

United Coconut Associations of the Philippine (UCAP) chairman Dean Lao, Jr. said now is the right time to implement the long-delayed increase of the biodiesel component in diesel fuel mix as mandated by law.  Mr. Lao said the current 2% biodiesel blend (B2) sells for less than P60 per liter, against regular diesel, whose price has already breached P60.

Speaking at the 3rd World Coconut Congress briefing on Wednesday, August 30, he said even an increase to a 5% blend could lead to the production of about 280 million liters of biodiesel a year, which can easily be supported by the available coconut oil supply.  “The coconut industry needs a value-added market that is sizable, that is dependable, and that is not subject to the influence of foreign markets,” he said. “It can make a huge amount of difference to the coconut industry (to develop) a value-added market over time,” he added.

Additionally, UCAP Vice-Chairman Marco Reyes cited the pollution-reduction benefits of a biofuel shift.  “Just by increasing the blend to 5%, the particulate matter in the air goes down by 83%.  This will also result in P1.5 trillion in savings from foregone imports of diesel, fuels saved from increased mileage, life cycle CO2 reduction, reduction in cost of air pollution, among others,” Mr. Reyes added.  “We need to rediscover our coconuts.  We cannot just be importers of crude oil. We need to wean ourselves from dependence on crude oil,” he said.