Source - Bangkok Post
October 5, 2006

Domestic ethanol supplies will be sufficient for achieving the Energy
Ministry's goal to produce eight million litres a day of gasohol in 2008,
energy researchers say.

Gasohol producers will require 800,000 litres of ethanol a day in 2008 to
meet the target and the volume is not beyond the capacity of local ethanol
producers, according to Rangsan Sarochawikasit, executive director of the
ministry's Bureau of Energy Research.

Gasohol is a 10:90 mixture of ethanol and gasoline. The government has set a
deadline of January for all local service stations to stop selling premium
(octane 95) gasoline and to offer gasohol 95 instead. Fuel companies have
expressed concern about the availability of sufficient gasohol supplies.

Currently, Thailand has six ethanol plants with a combined production
capacity of 460,000 litres a day. Four more plants are due to start
operating next year, which would enhance local supply capability, Mr Rangsan
said at a seminar yesterday.

"In the worst-case scenario, the Energy Ministry would take some sugar from
the export quota for ethanol production if necessary," he said.

The ministry has licensed 40 companies to produce ethanol but Mr Rangsan
expects only 20 will go ahead.

To address concern about a possible shortage, the ministry in August
liberalised ethanol production and said newcomers would not need licences.

In addition, the ministry is working with the Agriculture Ministry to
improve cassava yields to five tonnes per rai from three tonnes, and
sugarcane yields to 15 tonnes per rai from 10. Both crops are main raw
materials for ethanol production.

The government is also encouraging ethanol plants to seek contract farming
arrangements with farmers to ensure steady raw material supplies.

In addition to promoting gasohol, the Energy Ministry has set a target of
8.5 million litres per day of biodiesel to be available by 2012.

The main raw material for biodiesel is palm oil. The ministry aims to
utilise four million rai in Thailand as well as one million rai in Burma,
Laos and Cambodia for the purpose by 2012, said Mr Rangsan.

About 420,000 rai of palm oil plantations have been opened in Thailand over
the past two years.

The Export-Import Bank of Thailand and the Japan Bank for International
Cooperation are supporting investment in oil crop plantations in the Greater
mekong Subregion for re-export to biodiesel and gasohol producers in
Thailand.

 

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