THE Federation of Philippine Industries Inc. (FPI) wants the government to approve the use of palm oil as a biodiesel additive, citing cost considerations.
“We now working with the Department of Energy to include palm oil as high as 5 percent in the specification of biodiesel since it is cheaper,” FPI President Jess Arranza told reporters, adding that current specifications only cover coconut oil.
The Philippines is currently capable of producing 450 kilos of coco oil per hectare but yields of 5,000 tons can be had from palm oil, Arranza said.
“So if the prices of diesel is down, there’s enough supply for palm oil in the world market,” he said.
The Biofuels Act of 2006 aims to reduce the country’s dependence on imported fuels with due regard to the protection of public health, the environment, and natural ecosystems consistent with sustainable economic growth.
The law also provides for incentives to encourage investments in the production, distribution and use of locally produced biofuels.