D&L Industries plans second biodiesel plant in Philippines

D&L Industries Inc. is considering building a second biodiesel plant. This decision comes just months before a government requirement to increase the coco methyl ester blend in diesel fuel from 3% to 4%, effective October 2025. D&L stated that they are in the final stages of evaluating the risks and returns associated with this potential new plant. The planned facility would be managed under Chemrez Technologies Inc., a D&L subsidiary. The company is also looking for a suitable location for the new plant. The decision will align with D&L's strategic growth goals and aim to boost long-term shareholder value. Currently, D&L operates a biodiesel plant in Quezon City, which produces 90 million liters of biodiesel annually. The company now has more financial flexibility to invest in a second plant following the early profitability of its Batangas plant. This plant, which cost P10.5 billion to build, turned profitable sooner than expected. D&L said that the new biodiesel plant would require significantly lower capital expenditures compared to the Batangas facility. The Batangas plant also produces various coconut oil-based products like personal care and household cleaning items. D&L's net income rose to P2.34 billion, a 2% increase, driven by strong sales growth linked to the Batangas facility. The company aims for continued profitability as it looks toward future expansion.