Survey Thailand Biofuels
Datum: 04-01-2010
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The Biofuels Market in Thailand

Facts and figures

Thailand has developed the National Energy Strategy to reduce its reliance on oil imports. The strategy encourages the production and sale of alternative fuels, including gasohol (a blend of gasoline and ethanol) and biodiesel.Current ethanol consumption is 1.24 million litres per day while daily consumption of biodiesel is 1.56 million litres. The country’s 15-year alternative energy plan (2008-2022) stipulates daily consumption to grow on average by 15.2 percent for ethanol and 7.9 percent for biodiesel to reach 9 million litres of ethanol and 4.5 million litres of biodiesel by 2022.During 2009-2011, Thailand’s projected investments on biofuels are projected to reach $725 million. A declining trend in investments is expected over the next 10 years, forecast at $657 million in 2012-2016 and $513 million in 2017-2022.

Key players in the government sector

• The Energy Policy and Planning Office makes recommendations on national energy policies, energy management and development plans.
• The Department of Alternative Energy Development and Efficiency promotes energy efficiency, formulation of energy conservation regulations, development of alternative energy uses and dissemination of energy technology.
• The Department of Energy Business handles issuance and renewal of licenses and registration certificates of oil traders, oil transporters and operators of other oil-related businesses.
• The Board of Investment (BOI) offers incentives to prospective foreign investors in the alternative energy industry, including majority shareholdings in the Thai company (of up to 100%), exemption or reduction of import duties on machinery, corporate tax exemption, permission to take or remit foreign currencies abroad, ownership of land and facilitation in the issuance of work permits for foreign employees. In 2007, the BOI approved 40 biofuel projects with a combined value of $1.48 billion.

Key players in the private sector

• PTT Plc, the national oil and gas flagship, is spending $32.3 million on R&D for alternative fuels and products related to oil and chemicals in 2009. The company will develop the products through cooperation with car assemblies and universities. PTT also plans to soon build a pilot biodiesel production plant using bio-hydrogenation technology.
• The Bangchak Petroleum Plc is building a $30 million pure biodiesel plant with a daily production capacity of 300,000 litres which will be completed by end of 2009.
• Thai Agro Energy Co., Ltd. is the pioneer in the manufacture of fuel ethanol in Thailand.
• Petro Green Co., Ltd. operates two ethanol plants with combined production capacities of 400,000 litres of anhydrous ethanol per day, providing approximately 30 percent of Thailand’s total gasohol supply.

Market Opportunities

Production of biodiesel and gasohol.The country needs second generation technology for biofuel production such as biohydrogenation diesel (BHD) and biomass to liquid (BTL). Compatible equipment and machinery used for such production technology will also be required in the future.R&D and production of technology to help improve energy efficiency and reduce polluting emissions. The inadequate development of local competence in R&D capabilities, operation and maintenance of renewable energy systems offers huge opportunities for foreign companies. All ethanol and biodiesel plants in the country are potential targets for joint R&D collaboration. 

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Laatste wijziging: 12-04-2011 at 15:00