In compliance with a Circular set out by President Arroyo, at least 900 government vehicles have started using 1-percent of coco-methyl ester (CME) as a blend to their fuel use.

Somehow, this is seen as an advance step toward the country's aggressive push in its bid to develop alternative sources of fuel for the transportation sector, the Department of Energy said.

Aside from the DOE, those already in the roster of government agencies using CME-blended diesel are Department of Tourism, Department of Environment and Natural Resources, Employees Compensation Corporation, Local Water Utilities Administration, National Housing Authority, Natural Resource Development Corporation, Philippine Coconut Authority, Philippine Convention and Investors Corporation, Philippine Deposit Insurance Corporation, Philippine Export Zone Authority, Philippine Heart Center, Philippine International Trading Corporation, Philippine Lung Center, Philippine National Oil Company, Philippine Postal Corporation and the Supreme Court.

It would be noted that Malacanang's Memorandum Circular No. 55 has mandated the use of CME as a blend for diesel fuel being used by government vehicles.

CME is a substance derived from coconut oil. Based on technical tests, it is viable to be used as a diesel additive or blend.

DOE noted that further studies have shown that the use of CME as an additive or enhancer to diesel results in better combustion, less emission and more engine power to the vehicle.

"Four months in the implementation of the program when MC 55 took effect, we have seen strong compliance from the government agencies," Energy Secretary Vincent S. Perez enthused.

He noted this was in view of President Arroyo's follow-up Order to accelerate the program in light of continuous increase in world oil prices.

The energy chief pointed out that a nationwide mplementation of 1.0 to 5.0-percent CME would decrease imported fuel dependency by roughly 3.0 percent.

Just last week, Perez led in the unveiling of the PNOC-Energy Development Corp.'s (PNOC-EDC's) first small scale CME plant at its Energy Research and Development Center in Quezon City. The pilot plant can produce 200 liters of CME per day.

PNOC-EDC said the project was carried out to demonstrate the viability of fabricating a smaller scale CME plant which can be replicated in the rural areas to help the millions of coconut farmers.

The company added that the design plans and technology will be made available to the farmers and associations nationwide.

In line with this initiative, PNOC has expressed willingness to provide technical assistance to help farmers produce their own CME for commercial distribution.

As an alternative transport fuel, the use of CME is expected to generate savings to the motorists in terms of increase mileage, cleaner engine and lower maintenance cost.

The enhanced use of CME is also expected to yield savings to the government. Based on increased fuel efficiency of 32-percent, there will be an estimated R13.51 billion worth of displaced diesel, the energy department claimed.

If ever, this will translate to $239.82 million worth of equivalent savings in dollar reserves.

At the same time, the use of CME will also contribute to the reduction in greenhouse emissions.