D&L Industries plans second biodiesel plant, leveraging regulatory shifts, rising demand, and coco-biodiesel’s economic, environmental, and consumer benefits.
D&L Industries, through its wholly owned subsidiary Chemrez Technologies, Inc. (CTI), has reaffirmed its intention to pursue the establishment of a second biodiesel production facility in the Philippines. The move comes as demand for biodiesel is expected to rise once the government lifts the temporary suspension of the mandated increase in biodiesel blends at retail fuel stations.
Alvin D. Lao, President and CEO of D&L, explained that while the project remains at the planning stage, management views the new plant as inevitable. “It’s more a matter of when, not if,” Lao stated. “We still have to determine the timing, scale, and investment needed. But the seriousness of our announcement reflects the strong likelihood of moving forward.”
The planned capacity expansion is closely tied to regulatory developments. In July 2025, the National Biofuels Board announced a suspension of the rollout of the 4% (B4) and 5% (B5) biodiesel blend mandates, originally set for October 2025 and October 2026. The suspension was prompted by concerns over rising pump prices and the inflationary effects of elevated coconut oil costs, which are linked to supply constraints among coconut farmers.
Despite this delay, Lao emphasized that the decision to suspend does not amount to cancellation. “It remains postponed, not abandoned. Eventually, the mandate will be enforced, and in that context, additional biodiesel capacity makes perfect sense,” he said.
D&L previously highlighted that regulatory tailwinds, combined with a growing awareness of biodiesel’s environmental and economic advantages, create an attractive backdrop for investment. The company noted that its recently completed Batangas facility, coupled with limited new capital commitments, leaves it with the financial flexibility to invest in a new, smaller-scale biodiesel plant.
Chemrez already holds the position of the largest biodiesel manufacturer in the Philippines. Since pioneering biodiesel research in the early 2000s and building Asia’s first continuous coconut biodiesel facility in 2006, the company has been instrumental in developing the local industry.
Looking ahead, D&L maintains a strong long-term outlook for biodiesel, citing its essential role in sustainable energy. A University of the Philippines Los Baños study found that coco-biodiesel reduces emissions by up to 78% compared to petroleum diesel. Additionally, increasing the biodiesel blend from 2% (B2) to 5% (B5) could deliver a 10% mileage boost, directly benefiting consumers through fuel savings.
Economically, the expansion of coco-biodiesel production has wide-reaching benefits. Roughly 20% of the Philippine population depends on the coconut industry, meaning greater biodiesel adoption could translate into job creation and new investments across agriculture and manufacturing. For D&L, the opportunity represents not just growth, but also a chance to strengthen its leadership in a strategically vital industry.
