American Biodiesel news

The Energy Ministry yesterday announced it would accelerate plans to introduce biodiesel nationwide to follow His Majesty the King's call for more promotion of alternative fuels. Energy Minister Viset Choopiban said the plan was in line with a cabinet decision in May to support biodiesel.


The plan calls for the use of 8.5 million litres of biodiesel per day by 2010. The focus initially will be on a mixture of 5% refined palm oil and 95% diesel in a blend known as B5D.


The use of palm oil, a major crop in Thailand, will be increased to 10% under a B10 blend in 2012.


Several plants have already begun biodiesel production. Golden Biodiesel Co has a daily capacity of 200,000 litres and plans to increase its production to 500,000 litres per day, while Raja Biodiesel Co currently produces 20,000 litres per day, with another 6,000 litres available from the Alternative Energy Development and Efficiency Department.


Bangchak Petroleum, meanwhile, is planning to produce another 300,000 litres per day, with Thai Olefins aiming for another 200,000.


Mr Viset said around 500,000 litres of palm oil per day were currently available after domestic use and export, which is insufficient to meet future biodiesel requirements.


Ministers on Tuesday agreed to expand palm plantation areas to help boost market supplies.


The Agriculture Ministry said at least five million rai of land would be needed to cultivate oil palm, to support the higher biodiesel target in five years.


It will take more than four years to harvest the crop and three to five years to produce biodiesel for commercial use, according to the ministry.


Mr Viset said he was considering a plan to waive some taxes on biodiesel production to help lower the cost to attract consumers.


At present, Bangchak Petroleum Plc is the only distributor of B5 fuel, which is available at 14 petrol stations.