EVEN if the government decides to increase the coco-methyl ester (CME) biodiesel blend to 5 percent from its current 2-percent levels, local biodiesel manufacturers are confident local supply is enough to meet the possible increase in demand.

This is what Dean Lao Jr., chief operating officer of Chemrez Technologies Inc., indicated to reporters, saying there is more than enough production capacity for a 5-percent biodiesel blend.

At the current 2-percent biodiesel blend, according to Lao, only 40 percent of local supply is being utilized.

Lao noted at least 300 million liters of production capacity is needed to meet the demand for a 5-percent biodiesel blend.

“However, to date, there should be around 365 million liters of biodiesel supply produced locally,” he added.

Energy Assistant Secretary Mario Marasigan earlier said oil companies were mandated to blend 2 percent of CME into their diesel products in February this year pursuant to the Biofuels Act of 2006.

Marasigan pointed out that biodiesel combined production has gone beyond 300 million liters from the accredited biodiesel manufacturers, namely, Chemrez Technologies, Senbel Fine Chemicals, Mt. Holy Coco and Pure Essence, among others.

Marasigan pointed out rising world oil prices due to geopolitical and external factors has prompted the government to boost its programs to meet its long-term goal of having 60-percent independence from imported fuels.

Since 2005, Marasigan added, the use of compressed natural gas and autoLPG—referring to liquefied petroleum gas (LPG) when used for transport—has been promoted as part of the government’s alternative-energy or energy-diversification program.

He pointed out that the enactment of the Biofuels Act of 2006 kick-started the development of the country’s renewable-energy resources program in 2007 with the use of biodiesel and ethanol being mandated.

“We started promoting the utilization of these fuels—which are deemed alternative as they is not common or the conventional fuels. With alternative fuels, we started with the introduction of compressed natural gas, autoLPG and biofuels,” Marasigan said.