The Philippine government’s plan to increase the biodiesel blend in diesel fuel presents a significant opportunity for growth in the biodiesel market. Starting from October 1, the mandated blend will increase from 3% to 4%, with further increases to 5% by October 2026. To meet this rising demand, D&L Industries, through its subsidiary Chemrez Technologies Inc. (CTI), is considering building a second biodiesel plant.
D&L Industries confirmed that it is in the final stages of evaluating the risks and rewards of this expansion. The company has sufficient financial flexibility following the completion of its Batangas plant and expects the new plant’s capital expenditure to be lower. However, any large-scale investment would require shareholder approval. D&L believes that increasing biodiesel production will boost agricultural and manufacturing investment, create jobs, and improve environmental sustainability, while reducing the Philippines’ reliance on imported fossil fuels and enhancing energy security.
