A circular passed earlier this year by the Department of Energy (DOE), which mandated the 2% biodiesel requirement hike in local fuel mixture is what Chemrez expects to be the driving force in their sales and production increase this year. However they are expecting competition to be stiff as more companies have already signed up at the DOE to be registered biofuel producers
Under the 2006 biofuel law, the government may review to increase the mixture of biofuels in the local fuel mixture. Market factors will be the deciding factors when reaching this decision. Primarily the availability of local feedstock supply. However in cases where feedstock cannot meet the demand, local fuel retailers can be allowed to import the biofuel fuel. That however is just a stop gap measure till local supply can meet the demand.
11 companies have already been registered as accredited biodiesel producers bringing the total capacity to 300 million liters per year. However the main limiter will still be the availability of feedstock, so it remains to be seen whether they can expect to produce 300 million liters a year.
Publicly listed Chemrez is one of the pioneer commercial biodiesel producers in the country. They use coconut as their feedstock during the production of biodiesel.
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Category: Biodiesel, Law
