Thailand Biofuel Updates26/2/2007

MTEC Bioenergy Research Group

Energy Import (source : EPPO)

284,373 286,953346,057

486,627

644,933

753,783

28,522 25,817

30,735

41,533

55,680

60,253

30,559 35,073

42,635

46,053

62,827

77,843

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2001 2002 2003 2004 2005 2006

M.B

aht

ELECTRICITY

COAL

NATURAL GAS

PETROLEUM PRODUCTS

CRUDE OILOil shock=16%

Oil shock=8%

Agriculture Export VS Fuel&Lub. Import (Data from The Bank of Thailand)

4,771

6,3145,794

3,406

4,766

7,559 7,445 7,435

8,937

13,150

20,828

25,043

8,070

10,225

7,848

0

5,000

10,000

15,000

20,000

25,000

30,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Agriculture Export

Fuel and Lubricant Import

M.USD

Royal Chitralada Royal Chitralada ProjectsProjects

• 1985 : Ethanol from Molasses 1985 : Ethanol from Molasses UnitUnit

• 1995 : Expansion 1995 : Expansion

• 2001 : Dehydration Units2001 : Dehydration Units

• 2001 : Diesel-Palm (Refined)2001 : Diesel-Palm (Refined)

• Several RD&D, Product Dev., Several RD&D, Product Dev., Information Campaigns.Information Campaigns.

• Fleet Trials since 1986Fleet Trials since 1986

• 19.09.2000 : National Ethanol 19.09.2000 : National Ethanol PolicyPolicy

• 2007 : Gasohol 95 / Gasohol 91 2007 : Gasohol 95 / Gasohol 91 in > 4000 Stationsin > 4000 Stations

ULG and Gasohol Price Structure at 18/2/07

14.9838 15.6216 14.5362 15.2188

3.68503.3165

3.68503.3165

3.46001.5000 3.2600

1.5000

0.00

5.00

10.00

15.00

20.00

25.00

30.00

ULG 95 GASOHOL95 ULG 91 GASOHOL91

VAT

MARKETING MARGIN

CONSV. FUND

OIL FUND (1)

M. TAX B./LITRE

TAX B./LITRE

EX-REFIN. (AVG)

Total incentives to refiners = 2.49 B/LOf Gasohol95, = 24.9 B/L blending credit

Ethanol Program in Thailand

• Revival of National Ethanol Program since 1999-2000. Government Policy in Sept. 2000

• Inspiration from development initiatives by HM King Bhumipol since 1970s and pilot plant since1985

• Valuable experiences in technical/economic areas from Trindade’s study and later from ISAF XIII in 2000 in Stockholm, hosted ISAFXIV in Phuket Thailand in 2002.

• International Member of Governor Ethanol Coalitions • 1st Country in Asia to announce National Policy for

both Bioethanol(19.09.2000) and Biodiesel (10.07.2001)

Target 2012Target 2012• E10 : 10% of E10 : 10% of Ethanol in Gasoline Ethanol in Gasoline • B10 : 10% of B10 : 10% of Biodiesel in Diesel Biodiesel in Diesel • NGV : 20% of NGV : 20% of Transport Fuels Transport Fuels

Source : N.Nattasomboon, Ethanol and Biofuels Asia 2006

Projected Demand for Domestic Use

Production Capacity

Ethanol Production Capacity

Sugar cane and Molasses• 4 Existing Plants : 475 KL/d• 18 Projects : 2.42 ML/d to

come on line by 2008

Cassava• 2 Existing Plants : 280 KL/d• 29 Projects : 8.3 ML/d to come

on line by 2008

Total Existing Production Capacity : 755 KL/d

Projected Production Capacity in 2008 : 11.6 ML/d

World number 3rd after Brazil and USA ?

Opportunity for ImprovementOpportunity for Improvement

20.28 tons/hectare

Year 2004

~32tons/hectare

Year 2007…

WorldWorld

ThailandThailand

11.020.28

Productivity (tons/hectare, 2004)

Source : K.Srirod, 4th FEALAC, Bangkok 2006

Current Ethanol Yield: 3,687 L./Ha !

Source : www.doa.go.th

Thai-yuan Ethanol, cassava plant Thai-yuan Ethanol, cassava plant 130,000L/d, Konkaen Thailand130,000L/d, Konkaen Thailand

Thai Agro Energy Co. Ltd.150,000 L/d Molasses Ethanol, Supanburi, Thailand

HRH Princess Sirindhorn : Openning Biodiesel plant,Chitralada Palace 7.05.2004

Diesel and Biodiesel B5 Price Structure at 18/2/07

16.0274 16.4550

2.3050 2.1898

1.5000 0.5500

1.68021.8655

1.52691.4942

0.00

5.00

10.00

15.00

20.00

25.00

H-DIESEL(0.035%S) Biodiesel (B5)

Bah

t/Lt.

VAT

MARKETING MARGIN

CONSV. FUND

OIL FUND (1)

M. TAX

TAX

EX-REFIN.

Total incentives to refiners = 1.13 B/L of B5Retail Price Diff = 0.5 B/L, Blending credit =22.26 B/L.

3 Plants with production capacity 600,000 L/d400 stations selling B5 by PTT/BCP

BCP Unit, 50,000 L/d

79 communtiy biodiesel units

Palm production (Fresh Fruit Bunch)

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

Million tons/yearMillion tons/year

yearyear

2006 CPO ProductionMalaysia : 15.4 M.TonsIndoneisa : 15 M.TonsThailand : 1.2 M.TonsNigeria : 0.8 M.TonsWorld Total : 35.5 M.Tons

Climate and Soil for Palm Oil

5 Yrs Old Palm in Krabi (Golden Tenera)

2 Yrs Old, Pathumthani, NE of Bangkok, (Surat 1)

Community-Based Biodiesel Production To disseminate the Royal Initiatives on

Sufficiency economy Practice and Bioenergy Project

Project Site (Rangsit Canal #13,Saraburee)

Project Activities

Plantation : KU

Engine Performance / Environment ,

Materials compatability,Tribology & Wear& Corrosion

Pilot Plant : MTEC/ TISTR200 L/ Batch

Oil extraction : MTEC

BDF for diesel engine

: MTEC

SVO for Agriculture machine

MTEC/ SKI / DOAE

LCA :NSTDA

Cake :solid pellet to gasifier

Value added for by-product (Glycerol ): MTEC/RCP

27th Month