D&L Industries, through its wholly owned subsidiary Chemrez Technologies, Inc. (CTI), is serious about plans to build a second biodiesel plant in light of higher demand once the government lifts the suspension of the implementation of a four percent biodiesel blend requirement at the pumps.

“What we announced was that we are planning and studying that second plant. We’re still there. It's still in the planning stages,” said D&L President and CEO Alvin D. Lao.

However, he added, “I would say it's probably a matter of when, not if. Meaning, there's a high probability we will make a second plant. But, in terms of when, how big, how much we'll spend, we still do not have that information since we are still in the planning stage.”

“But the fact that we made that announcement, it's something we're very serious about. We believe, for many reasons, it makes sense for us to consider a second plant even if the increase in the mandated blend has been postponed,” said Lao.

He pointed out that, “The increase has been postponed and not cancelled. So, this means it will still push through at a later date. So, in that sense, it would still make sense to proceed with more capacity for biodiesel.”

In an advisory dated July 17, 2025, the National Biofuels Board resolved to suspend the implementation of the four percent (B4) and five percent (B5) biodiesel blend mandates originally scheduled to take effect by Oct. 1, 2025 and Oct. 1, 2026, respectively.

This is “in view of the anticipated significant impact on pump prices and the potential inflationary effects on the national economy,” as coconut oil prices remain high due to supply challenges faced by coconut farmers.

D&L said earlier that, “The positive regulatory developments coupled with a greater recognition of the economic and environmental benefits of a higher biodiesel blend present an opportune time to invest and capitalize on the industry’s potential.”

It added that, “D&L sees this as a critical juncture in reinforcing and expanding its leadership in the industry.” Chemrez is currently the largest biodiesel manufacturer in the country.

With D&L’s Batangas plant now completed and no other major capital expenditures in the pipeline, the firm said it has the financial flexibility to potentially undertake the construction of a new biodiesel facility, which would require much smaller capex compared to the amount spent on the Batangas plant.

“While the company is cognizant of the risks, D&L believes that the essential nature of biodiesel alongside a favorable regulatory environment ensures consistent and growing demand, mitigating risks associated with economic fluctuations,” it noted.

D&L pioneered efforts in championing the local biodiesel industry. From 2002 to 2006, Chemrez funded many technical research studies on the fuel features of biodiesel from both local and foreign laboratories.

In 2006, CTI built Asia’s first continuous coconut biodiesel plant, boosting the feasibility of the Philippines developing its own local biodiesel industry.

D&L said it maintains a positive long-term outlook on the local biodiesel sector, recognizing the significant benefits that an increased biodiesel blend can offer to the economy, environment, and consumers.

By developing the industry, several facets of the economy are set to benefit. With at least 20 percent of the Philippine population directly or indirectly benefiting from the coconut industry, the potential for economic value creation in the form of additional investments and jobs in both the agriculture and the manufacturing sectors is significant.

From a sustainability perspective, coco-biodiesel offers a meaningful avenue to collectively cut carbon emissions. According to a study by the University of the Philippines Los Baños, coco-biodiesel emits a whopping 78 percent fewer emissions than petroleum diesel.

On top of that, an increase in biodiesel blend from B2 to B5 is estimated to yield an estimated 10 percent mileage increase, which directly translates to consumer savings.