Thailand Biofuels Activities
Here you'll find information about Thailand's work in biofuels. Learn more about its:
Background
Thailand has set up serious efforts to reduce oil imports and carbon emissions by replacing at least 20% of its vehicle fuel consumption with renewable energy sources such as ethanol and biodiesel within the next five years. Biofuels are also seen by the government as an opportunity for rural development and trade.
Production
Ethanol production in Thailand was 192.8 million liters in 2007. There are nine operating plants with a total capacity of 435 million liters per year, and nine plants are under construction (440 ML per year).
Biodiesel production in Thailand was 58 million liters in 2007. Currently, there are nine biodiesel plants with a total production capacity of 655 million liters annually.
Ethanol Production Plants in Thailand
Source: DEDE
Feedstock
Almost 90% of ethanol produced in Thailand is from cane molasses. The remaining 10% is from cassava. The proportion is expected to shift over time in favor of cassava. Molasses supplies are expected to increase to 3 million tonnes, half of which will be used in food industries (mostly for liquor production), and the balance will be for exports and fuel ethanol production (USDA 2007). Cassava production was 22.5 million tonnes in 2006, and it is expected to grow as the planned cassava-based ethanol production plants start operating.
The main raw material for biodiesel in Thailand is palm oil. The economy ranks third in the world after Indonesia and Malaysia. Total crude palm oil output is 1.3 million tonnes a year, with about 800,000 tonnes going to the food sector. Of the 500,000 tonnes used in non-food businesses, 420,000 tonnes are now needed to make B2 (2% biodiesel with 98% petroleum diesel). At least 600,000 tonnes would be required to make B5 (5% biodiesel with 95% petroleum diesel). The government plans to expand palm oil cultivation area by 2.5 million Rai (1 hectare = 6.25 Rai) during the next five years. Few biodiesel plants are using cooking oil as feedstock. Jatropha is seen as an alternative feedstock for biodiesel production in Thailand, and one plant intends to use this feedstock.
Economics
The following charts show specific economic statistics for the member economy.
| Ethanol | US$/liter |
|---|---|
| From cassava | 0.54 |
| From cane molasses | 0.46 |
Source: DEDE, 2007; 34.5 Baht/US $
| Biodiesel | US$/liter |
|---|---|
| From palm oil | 0.86 |
| From used cooking oil | 0.68 |
Source: DEDE 2007; 34.5 Baht/US $
Biofuels in Use
Thailand currently sells gasohol (E10), which accounts for about 20% of total petroleum sales, through its service stations. The state-owned companies PTT and Bangchak started supplying E20 in January 2008. Bangchak plans to introduce E85 at its stations in the near future.
B2 is available nationwide; PTT and Bangchak started selling B5 in 2007.
Infrastructure and Vehicles
There were 3,822 gasohol service stations in Thailand as of December 2007. Currently, 40 stations in Greater Bangkok sell E20 (February 2008). B2 is available at all stations throughout Thailand; 976 stations offer B5 in Greater Bangkok.
E20 compatible vehicles are available in Thailand from Ford, Toyota, Honda, and Nissan.
Trade
Most ethanol producers plan to supply ethanol domestically (particularly those who do not have sugar mill businesses), due to concerns regarding sourcing of raw materials (USDA 2007). However, fuel ethanol export is expected to grow as the production increases in Thailand. About 14.4 million liters of fuel ethanol was exported in 2007 to Singapore, the Philippines, Chinese Taipei, Australia, and Europe.
Policy
Policymakers in Thailand have taken measures to increase investments in the production and use of ethanol, including a Board of Investment (BOI) privilege for a fuel ethanol plant, a waiver on the excise tax for the ethanol blended in gasohol, a low rate of oil fund levy, and expansion of cassava production. Also, the government set gasohol prices around 2.0 - 2.50 baht/liters cheaper than regular and premium gasoline. The government requires all its fleets to be fueled with gasohol.
Thailand's Cabinet approved an excise tax reduction for cars using gasoline containing at least 20% of fuel ethanol, proposed by the Excise Department and effective January 1, 2008. The excise tax cut is expected to lower the price of cars by at least THB10,000 ($1=THB0.03204). A car with a cylinder capacity of no more than 2,000 cm³ and an engine performance of no more than 220 hp will be taxed at 25%, down from a previous 30%. Cars with a cylinder capacity of no more than 2,500 cm³ and no more than 220 hp will be charged at 30%, down from 35%. Finally, cars with a cylinder capacity between 2,500 and 3,000 cm³ and no more than 220 hp will be taxed at 35%, down from a previous 40%. The rates apply to passenger cars and vans with fewer than 10 seats. The Excise Department estimates that about 30,000 new vehicles powered by E20 or higher will be in the market in 2008 (DEDE 2008).
The Thai government announced the Strategic Plan on Biodiesel Promotion and Development in January 2005. The plan targets replacing 10% of diesel consumption in 2012 by increasing palm oil cultivation, and promoting community-based and commercial biodiesel production. The Thai government introduced a B2 mandate in February 2008, which would require the production of approximately 420,000 tonnes of biodiesel per year. The government is making available 3 billion Baht in soft loans to farmers growing palm crops. It also supports R&D of other crops such as jatropha. A B5 mandate is planned to be introduced in 2011, and B10 in 2012.
Sources
- Department of Alternative Energy Development and Efficiency (DEDE)
- U.S. Department of Agriculture, GAIN Report, 2007 (PDF 65 KB) Download Adobe Reader.
- Energy Current, March 2008
- Bangkok Post (Thailand), March 8, 2008