Sylvie Willis
Thailand's biofuel industry has been growing, with the country aiming to increase ethanol and biodiesel consumption over the next decade. In 2018, Thailand consumed almost 1.5 billion liters of ethanol, equal to a blend of 13.8% in gasoline. Thailand's ethanol program has been successful in stimulating demand, with the government promoting ethanol through subsidies and the increased availability of higher blends. The country's domestic ethanol industry has expanded, with a capacity of 1.5 billion liters using molasses and cassava. Thailand's ethanol program has been linked to a significant reduction in GHG emissions, and the country has ratified the 2015 Paris Agreement on Climate Change, pledging to reduce emissions by 20% by 2030.
| Characteristics | Values |
|---|---|
| Consumption of bioethanol fuel in 2018 | 1.5 billion liters |
| % of gasoline that was bioethanol fuel in 2018 | 13.8% |
| Number of bioethanol plants in Thailand | 21 |
| Capacity of bioethanol plants in 2017 | 1.8 billion liters |
| Feedstock used | Molasses and cassava |
| Target consumption for 2036 | 2.6 billion liters |
| Expected increase in biodiesel consumption in 2020 | 10% |
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What You'll Learn
- Thailand's biofuel consumption target was revised to 2.6 billion litres by 2036
- The government promotes ethanol use through subsidies and price incentives
- Gasohol (E-10) 91 replaced unleaded gasoline in 2013, boosting ethanol sales
- The Alternative Energy Development Plan (AEDP) aims to increase ethanol consumption
- Cassava ethanol is a developed concept in Thailand, but data is inconclusive
Thailand's biofuel consumption target was revised to 2.6 billion litres by 2036
Thailand has been successful in stimulating demand for fuel ethanol, with consumption reaching almost 1.5 billion litres in 2018, equal to a blend of 13.8% in gasoline. The Thai government has promoted ethanol through subsidies and the increased availability of higher blends (E10, E20). The fuel ethanol market received a boost when unleaded gasoline 91 was replaced with gasohol (E-10) in 2013, increasing monthly ethanol sales from 60 million litres to 80 million litres.
The 10-year Alternative Energy Development Plan (AEDP) was revised in 2015 to increase ethanol and biodiesel consumption by 2036. The original target for ethanol was 4.1 billion litres by 2036, with all biofuels used in the country to be produced domestically. However, this target was revised to 2.6 billion litres by 2036 due to lower crude oil prices and limited feedstocks. The government is expected to continue promoting the use of ethanol through price incentives.
Thailand's ethanol program has been successful in reducing GHG emissions and improving the gasoline self-sufficiency rate. The program has also led to a transition from food crop production to cassava production for ethanol, although crop self-sufficiency rates remain above 100%. Thailand's agricultural sector is well-positioned to accommodate the present program target. The government has also offered a 3% reduction in excise tax for the production of flex-fuel cars that use E85.
Thailand's newly proposed National Energy Plan (NEP) has lowered the on-road biofuel consumption target to reflect the lower mandated blend rate for biodiesel and set a target for Sustainable Aviation Fuel (SAF) from 2026. Post-forecasts biofuel consumption is expected to increase by 5% in 2024, with a slight increase in E20 consumption and an increasing biodiesel blending rate. Thailand continues to base its biofuel targets on the projected supply of domestic feedstocks.
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The government promotes ethanol use through subsidies and price incentives
Thailand has been successful in stimulating demand for fuel ethanol, with consumption reaching almost 1.5 billion litres in 2018. This is a result of the Thai government's promotion of ethanol through subsidies and price incentives. The country's domestic ethanol industry has expanded significantly, with 21 plants capable of producing 1.5 billion litres of ethanol using molasses and cassava.
The Thai government's support for the ethanol industry is evident through its policies and initiatives. In the second phase of their fuel ethanol program (2007-2012), the government issued 18 new bio-ethanol licenses, aiming to boost daily production to 3 million litres. The replacement of unleaded gasoline 91 with gasohol (E-10) 91 in 2013 further boosted ethanol sales, increasing monthly sales by 20 million litres. The government has also set ambitious targets for ethanol consumption, with the 10-year Alternative Energy Development Plan (AEDP) aiming for 4.1 billion litres of ethanol consumption by 2036, although this target may be lowered to 2.6 billion litres due to lower crude oil prices and limited feedstocks.
To achieve these targets, the government has implemented various subsidies and incentives. The primary subsidy offered is the Volumetric Ethanol Excise Tax Credit, which provides a tax credit of 45 cents for every gallon of pure ethanol blended with gasoline. This subsidy encourages the production and use of biofuels, reducing the country's dependence on foreign oil. Additionally, the government has promoted the availability of higher ethanol blends (E10, E20) and plans to phase out lower blends by 2027, further incentivizing the use of ethanol.
The Thai government's commitment to promoting ethanol is also reflected in its international agreements. By ratifying the 2015 Paris Agreement on Climate Change, Thailand has pledged to reduce its greenhouse gas emissions by 20% by 2030. The expansion of the ethanol industry is expected to contribute significantly to this goal, as it can improve the gasoline self-sufficiency rate and reduce GHG emissions.
Overall, the Thai government's subsidies and price incentives have played a crucial role in stimulating ethanol demand and expanding the domestic ethanol industry. These efforts are aligned with the country's goals of reducing crude oil dependence and mitigating climate change.
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Gasohol (E-10) 91 replaced unleaded gasoline in 2013, boosting ethanol sales
Thailand has been successful in stimulating demand for fuel ethanol, with consumption reaching almost 1.5 billion litres in 2018, equivalent to a blend of 13.8% in gasoline. The country's ethanol industry has expanded significantly, with 21 plants using molasses and cassava to produce ethanol. In 2017, two new plants further increased production capacity to 1.8 billion litres.
In 2013, Gasohol (E-10) 91 replaced unleaded gasoline, boosting ethanol sales from around 60 million litres to 80 million litres per month. Gasohol, also known as E10, is a fuel mixture of 10% anhydrous ethanol and 90% gasoline. It can be used in most modern automobiles and light-duty vehicles without engine modifications.
Thailand's fuel ethanol program has had a positive impact on ethanol sales and the country's ethanol industry. The government has promoted the use of ethanol through subsidies, increased availability of higher blends, and price incentives. The 10-year Alternative Energy Development Plan aims to increase ethanol consumption to 4.1 billion litres by 2036, with all biofuels produced domestically.
However, the government is considering reducing this target to 2.6 billion litres due to lower crude oil prices and limited feedstocks. Thailand's ethanol program is also expected to improve gasoline self-sufficiency and reduce GHG emissions. The country has ratified the 2015 Paris Agreement on Climate Change and pledged to reduce its GHG emissions by 20% by 2030.
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The Alternative Energy Development Plan (AEDP) aims to increase ethanol consumption
Thailand has been successful in stimulating demand for ethanol, with consumption reaching almost 1.5 billion litres in 2018, equal to a blend of 13.8% in gasoline. The Alternative Energy Development Plan (AEDP) aims to increase ethanol consumption to 4.1 billion litres by 2036, with all biofuels used in the country to be produced domestically. This target was later revised to 2.6 billion litres in 2015 and again in 2018 to 6-7 million litres per day by 2037. The plan seeks to promote the use of renewable energy, reduce dependency on energy imports, and improve energy self-sufficiency.
The AEDP's goal of increasing ethanol consumption is part of Thailand's efforts to boost its domestic ethanol industry and reduce its reliance on fossil fuels. Thailand's ethanol policy, first implemented in 2008 and revised in 2015, aims to increase ethanol production and consumption by 223% by 2036. The policy focuses on using cassava and sugarcane molasses as feedstocks for ethanol production, with projected improvements in cassava yields and expansions in sugarcane growing areas. However, concerns have been raised about the sufficiency of feedstock supplies and the impact on food crop production.
To achieve its ethanol consumption targets, Thailand has promoted ethanol through subsidies and the availability of higher blends such as E10 and E20. The replacement of unleaded gasoline with gasohol (E-10) in 2013 significantly boosted ethanol sales. The government has also announced plans to phase out lower blends of gasohol, leaving only higher blends such as E20 and E85 available. Thailand's ratification of the 2015 Paris Agreement on Climate Change further underscores its commitment to reducing greenhouse gas emissions by 20% by 2030.
The AEDP's strategy includes creating awareness and access to knowledge about renewable energy, developing renewable energy databases, and publicizing information. It also aims to increase the proportion of renewable energy in the form of electricity, heat, and biofuels to 30% of final energy consumption by 2036. The plan addresses renewable energy development status, development of renewable energy targets, strategies to promote renewable energy, and expected results. The Ministry of Energy has developed the Thailand Integrated Energy Blueprint (TIEB), which includes the AEDP and four other energy master plans for a consistent approach to energy development.
While the AEDP has ambitious goals, there are challenges to its implementation. Concerns over feedstock supplies and the impact on food crops have been raised. Additionally, there is a lack of incentives to promote technology and infrastructure for ethanol production and use. Thailand's ethanol plan is embedded in the AEDP, and the success of the industry depends on the security of feedstock supplies and the sustainability of farmer livelihoods.
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Cassava ethanol is a developed concept in Thailand, but data is inconclusive
Thailand has been successful in stimulating demand for fuel ethanol, with consumption reaching almost 1.5 billion litres in 2018, equal to a blend of 13.8% in gasoline. The Thai government has promoted ethanol through subsidies and the increased availability of higher blends (E10, E20). The fuel ethanol market received a boost when unleaded gasoline 91 was replaced with gasohol (E-10) in 2013, increasing monthly ethanol sales from 60 million litres to 80 million litres.
Cassava ethanol is a developed concept in Thailand, with the country being one of the largest cassava producers in the world, exporting around 16 million metric tons annually. Cassava is widely cultivated in the country, particularly in the Isaan region, which has a favourable climate with hot and dry conditions, sandy soil, and ample sunlight. Cassava is used as a feedstock for ethanol production and has the potential to be used on a larger scale to produce ethanol for domestic consumption. However, data on the cost of producing ethanol from cassava is inconclusive.
One study from 2010 found that a bioethanol plant with a capacity of 150,000 l/day can produce ethanol from cassava at an average cost of 18.15 baht/l of gasoline equivalent (45 US cents/l gasoline equivalent based on the 2005 exchange rate). In comparison, the average price of 95-octane gasoline in Thailand during the same period was 11.50 baht/l (29 US cents/l based on the 2005 exchange rate). The study concluded that ethanol from cassava is not competitive with gasoline under a scenario of low to normal crude oil prices. For ethanol from cassava to be commercially competitive with gasoline, the gasoline price would need to rise above 18.15 baht/l (45 US cents/l).
However, it is important to note that the data used in this study is from 2002 to 2005, a relatively short period, and the conclusions may not be valid for other time intervals as the price of cassava and gasoline could deviate. Additionally, the study only considered the ex-factory costs and excluded all taxes. The actual cost of producing ethanol from cassava may be higher when considering other factors such as production costs, energy balance, and taxes.
Another study from 2009 found that implementing cassava ethanol has not yet produced convincing data regarding production cost and energy balance. The study compared the ethanol program with specific biofuel projects and found that achieving the ethanol program target can lead to a significant improvement in the gasoline self-sufficiency rate and a reduction in GHG emissions. However, it did not provide conclusive data on the production cost and energy balance of cassava ethanol.
In conclusion, while cassava ethanol is a developed concept in Thailand, the data on its production cost and energy balance is inconclusive. More recent and comprehensive studies are needed to fully understand the feasibility and competitiveness of ethanol from cassava in the Thai fuel market.
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Frequently asked questions
In 2018, Thailand consumed almost 1.5 billion litres of bio-ethanol fuel, equal to a blend of 13.8% in gasoline.
Thailand's bio-ethanol policy dictates that all consumption must be met with local production and imports of bio-ethanol fuel are not permitted. The government has promoted ethanol through subsidies and increased availability of higher blends (E10, E20, E85). The country's Alternative Energy Development Plan (AEDP) initially set out plans to increase ethanol consumption to 4.1 billion litres by 2036, but this target has been revised down to 2.6 billion litres.
Thailand's bio-ethanol program has successfully stimulated demand for ethanol, increasing monthly sales from around 60 million litres to 80 million litres. It has also improved the gasoline self-sufficiency rate and reduced GHG emissions. However, it has led to a transition from food crop production to cassava production for ethanol, which may impact food crop self-sufficiency rates.
