Thursday, May 18, 2006
Coco-biodiesel producer sets sights on overseas markets
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Chemrez Incorp., one of the two certified distributors of coco-methyl ester(CME) or coco-biodiesel products in the country, is planning to export its output to Japan, Korea and Taiwan.
Chemrez Operations Manager Dean Lao Jr. said that once their multi-billion peso coco-diesel plant went full stream, the company would need a market for its output.
Lao said there is a need for the lawmakers to pass the Biofuels Law that would mandate the use of one percent coco-biodiesel blend in the transport sector.
“Initially, our preference is to sell CME domestically. God knows we need it more than Japan. But if we remain slow in adopting it (law), when the plant is up and we will have to keep it running – then we will have to export it first,” he said.
According to Lao, it is high time for the Philippines to pass a law to develop such environment-friendly and cost-affective alternative fuels in the light of the continued rise in global oil prices.
“Japan, Korea, Taiwan. But, a lot of these countries are starting their biofuel law. Just like Malaysia they just passed a law mandating the use of bio-diesel by five percent to take effect by 2007. We hope we could be ahead of them in terms of implementation. There are markets that will be served by competing countries, as everything will now depend on the price of vegetable oil – coconut oil is not the cheapest oil. The cheapest oil is palm oil – so the palm oil producing countries like Malaysia and Indonesia will have an advantage on price,” Lao explained.
But Lao said the country should take the advantage of having an abundant supply of coconut.
“The Philippines, since we’re using coconut oil and though expensive, will have the advantage on the property of the bio-diesel. Its proven time and time again that coconut diesel is better,” he said.
Lao said the industry is looking forward to the commitment of Congress to pass the law within the year.
Lao said there is a sufficient supply of CME in the country. “The export volume is actually big and could take the entire production of the country and will still be insufficient. We want to set aside 70 million liters for the country a year and just export supply surplus,” he added.
Chemrez is putting up the country’s first biodiesel-dedicated manufacturing plant in Asia worth P2.2 billion.
The company is currently constructing Phase I of the in Eastwood, Quezon City and they would spend about P650 million. Target completion is on March 2006.
Phase 2 which would be three times bigger than initial phase, would involve another P1.5 billion capital which will be undertaken by the company within the next two to three years.
October 17, 2005, Donnabelle L. Gatdula, Philippine Star
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Chemrez Operations Manager Dean Lao Jr. said that once their multi-billion peso coco-diesel plant went full stream, the company would need a market for its output.
Lao said there is a need for the lawmakers to pass the Biofuels Law that would mandate the use of one percent coco-biodiesel blend in the transport sector.
“Initially, our preference is to sell CME domestically. God knows we need it more than Japan. But if we remain slow in adopting it (law), when the plant is up and we will have to keep it running – then we will have to export it first,” he said.
According to Lao, it is high time for the Philippines to pass a law to develop such environment-friendly and cost-affective alternative fuels in the light of the continued rise in global oil prices.
“Japan, Korea, Taiwan. But, a lot of these countries are starting their biofuel law. Just like Malaysia they just passed a law mandating the use of bio-diesel by five percent to take effect by 2007. We hope we could be ahead of them in terms of implementation. There are markets that will be served by competing countries, as everything will now depend on the price of vegetable oil – coconut oil is not the cheapest oil. The cheapest oil is palm oil – so the palm oil producing countries like Malaysia and Indonesia will have an advantage on price,” Lao explained.
But Lao said the country should take the advantage of having an abundant supply of coconut.
“The Philippines, since we’re using coconut oil and though expensive, will have the advantage on the property of the bio-diesel. Its proven time and time again that coconut diesel is better,” he said.
Lao said the industry is looking forward to the commitment of Congress to pass the law within the year.
Lao said there is a sufficient supply of CME in the country. “The export volume is actually big and could take the entire production of the country and will still be insufficient. We want to set aside 70 million liters for the country a year and just export supply surplus,” he added.
Chemrez is putting up the country’s first biodiesel-dedicated manufacturing plant in Asia worth P2.2 billion.
The company is currently constructing Phase I of the in Eastwood, Quezon City and they would spend about P650 million. Target completion is on March 2006.
Phase 2 which would be three times bigger than initial phase, would involve another P1.5 billion capital which will be undertaken by the company within the next two to three years.
October 17, 2005, Donnabelle L. Gatdula, Philippine Star
Proceed to Best of Pinoys News List
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