Philippines: 3% biodiesel blend mandated, what it means

Manila: The Philippine Department of Energy (DOE) has announced that starting October, the "downstream" oil industry players — those that provide the closest link to everyday users — will increase their "biodiesel blend".

According to Department Circular 2024-05-0014, the required coconut methyl ester (CME) blend for all diesel fuel sold across the country will be set at 3 percent starting October 1, 2024.

This blend will gradually increase to 4 percent by October 1, 2025, and to 5 percent by October 1, 2026.

Biodiesel is a renewable, biodegradable fuel made from vegetable oils, animal fats, or recycled cooking oil.

Win-win solution

A biodiesel blend is a mixture of biodiesel and conventional diesel fuel.

When mixed with traditional petroleum diesel, the resulting blend can be used in diesel engines with little or no modifications.

“Implementing the higher biofuels blend is a win-win solution as we promote economic growth, uphold environmental stewardship, and strive for cleaner energy utilisation. It is also about investing in a future where sustainability drives progress,” said DOE Secretary Raphael Lotilla.

Coco-diesel

The DOE highlighted that the higher CME blend will create additional markets for local coconut farmers, biodiesel producers, and other stakeholders in the coconut industry.

The mandatory 1-percent increase in CME blend will require 900 million additional nuts as feedstocks to produce 100 million to 120 million litres of biodiesel.

Besides coconut oil, there is an increased focus on using sustainable and non-food feedstocks, such as algae, waste oils, and agricultural residues, to reduce competition with food crops and enhance environmental benefits.

Savings

“Based on a 30,000-kilometer on-road test with a higher CME blend of 5 percent, an increase of around 10 percent in mileage corresponds to an estimated net savings of 4.17 pesos per liter of diesel,” the DOE stated.

Additionally, downstream oil industry players have the option to increase the ethanol blend in all gasoline fuel to 20 percent from the current 10 percent – potentially reducing domestic pump prices by around 3.21 pesos per liter.

What is biodiesel blend?

Biodiesel blends are often denoted by a "B" followed by a number that indicates the percentage of biodiesel in the mixture:

These blends offer both environmental and economic benefits: Biodiesel blends produce fewer emissions of pollutants such as carbon monoxide, particulate matter, and unburned hydrocarbons compared to pure petroleum diesel.

They also reduce greenhouse gas emissions. Using biodiesel blends can reduce dependence on imported oil and support local agriculture and energy production.

What is the optimal blend?

The optimal blend level can depend on various factors including climate, engine type, and manufacturer recommendations.

Advances in production technologies, including catalytic processes and enzymatic transesterification, has made dramatic improvements in efficiency, yield, and production cost savings.

The DOE has strengthened government policies, through mandates and incentives, as part of the broader renewable fuel standards to drive the adoption and production of biodiesel.

Blending mandates

There's been an increased blending mandate worldwide, requiring higher percentages of biodiesel in conventional diesel to reduce greenhouse gas emissions and dependence on fossil fuels.

It forms part of the growing emphasis on achieving carbon neutrality and reducing greenhouse gas emissions, positioning biodiesel as a key player in meeting these environmental goals.

Rural development

Expansion of biodiesel production contributing to rural economic development by creating jobs and providing new markets for agricultural products and waste materials.

Advances in engine technology and vehicle compatibility, ensuring that biodiesel blends perform efficiently and reliably in modern diesel engines.

Sustainability

There's been an increased use of lifecycle analysis and sustainability metrics to assess and communicate the environmental benefits of biodiesel compared to conventional fuels.

Meanwhile, there's been a growing international trade and collaboration among countries to standardise biodiesel quality, share technology, and meet global demand.

There's been an increased public awareness and acceptance of biodiesel as a viable, environmentally friendly alternative to traditional diesel, driven by education campaigns and demonstrated benefits.