Manila, March 24 -- Local coconut farmers are expected to benefit from D&L Industries' plan to build a new biodiesel factory for its wholly owned subsidiary Chemrez Technologies, Inc. (CTI).

D&L over the weekend announced that it is looking into investing in a second biodiesel plant for Chemrez, the country's largest biofuel manufacturer.

The demand for biofuel is expected to rise due to the mandated hike in coco methyl ester (CME) blend for all diesel fuel. From the current 3 percent (B3) mix, CME blend this year will increase to 4 percent (B4) starting Oct. 1.

"The implementation of a higher biodiesel blend provides a robust and value-added market for coconut oil domestically. By securing a stable domestic market, the industry can fo...