Thailand : Ethanol output cranked up to meet E20 demand
Ethanol producers in Thailand are ramping up output to meet rising demand for E20 gasohol as the government promotes biofuels to cut oil imports amid disruptions linked to the Strait of Hormuz. Officials expect ethanol demand to exceed 6 million litres per day as E20 adoption expands.
Ethanol manufacturers are increasing production to serve growing demand for gasohol E20, aligning with the government’s efforts to reduce Thailand’s reliance on oil imports.
Gasohol E20, a mix of gasoline and 20% ethanol, is being promoted by the government as a primary fuel to deal with a surge in global oil prices and shipping constraints via the Strait of Hormuz during the Israeli-US war on Iran.
“In a period of high global crude oil volatility, E20 will help balance retail prices at service stations,” said Kittisak Wattanavekin, honorary president of the Thai Ethanol Manufacturing Association.
Energy officials aim to encourage wider use of E20 by keeping its price lower than gasohol 91 and 95, which contain only 10% ethanol.
Caretaker energy minister Auttapol Rerkpiboon said the government wants to widen the price gap to around 5 baht per litre to accelerate adoption.
E20 is cheaper than both gasohol 91 and 95, but officials believe a larger difference will make it more attractive to motorists.
Ethanol consumption in Thailand is roughly 3.5 million litres per day, while total gasoline consumption exceeds 30 million litres per day, according to the association.
If E20 is actively promoted as the primary fuel, ethanol demand is expected to rise to more than 6 million litres per day, significantly reducing oil imports, noted the group.
Ethanol is made from sugar cane-derived molasses and cassava.
Thailand has more than 11 million rai of sugar cane plantations, producing roughly 90 million tonnes of cane and 10 million tonnes of sugar annually. This reflects the industry’s ability to expand into biofuels, said Mr Kittisak.
Sureeyot Khowsurat, chairwoman of the Tapioca Ethanol Association, said ethanol manufacturers are fully prepared to support the E20 policy.
Thailand has an ethanol production capacity of 7.2 million litres per day from 28 plants nationwide, with a surplus capacity of 50-60%, she said.
E20 promotion would increase cassava demand for ethanol to about 6 million tonnes annually. Some 90% of cassava production goes towards starch and chips, with only 10% (about 2-3 million tonnes) entering the ethanol industry.
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Source : Bangkok Post
