DOE mandates hike in coco methyl ester blend in diesel beginning October

The Department of Energy (DOE) has ordered an increase in the coco methyl ester (CME) blend in diesel fuel starting in October.

In its Department Circular No. 2024-05-0014, the DOE mandated downstream oil industry participants to increase the CME blend to 3%, from the current 2%, in diesel fuel sold nationwide, beginning October 1, 2024.

The CME percentage blend will then increase to 4% by October 1, 2025, and ultimately to 5% by October 1, 2026.

The Energy Department said the move aims to decrease dependence on imported fuels, reduce greenhouse gas emissions, and support the local biodiesel and bioethanol sectors.

“The increase in the CME blend is expected to create additional markets for coconut farmers, biodiesel producers, and other stakeholders in the coconut industry, with around 900 million additional nuts as feedstocks to produce around 100–120 million liters of additional CME requirements to satisfy a 1% mandatory increase in the CME blend,” the DOE said.

“Moreover, based on a 30,000-kilometer on-road test with a higher CME blend of 5%, an increase of around 10% in mileage corresponds to an estimated net savings of P4.17 per liter of diesel,” it said.

Moreover, the DOE said downstream oil industry participants may have the option to raise the ethanol blend in all gasoline fuel by 20% from the current 10% to reduce domestic pump prices.

Increasing the ethanol blend to 20% could bring about an estimated decrease of approximately P3.21 per liter in the gasoline pump price, it said.

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

The DOE said that to ensure a smooth and timely transition to higher biofuel blend percentages, the downstream oil industry must maintain sufficient storage capacity, blending facilities, transport systems, and dedicated storage tanks and dispensing pumps.

The Biofuels Act of 2006 mandates that all liquid fuels for motors and engines sold in the Philippines be blended with biofuels.

The current ethanol blend for gasoline has been at 10% since 2012, while the CME blend last increased to 2% in 2007. —VBL, GMA Integrated News