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

ELECTRICITYCOALNATURAL GASPETROLEUM PRODUCTSCRUDE OIL

Oil shock=16%

Oil shock=8%

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

4,771

6,314 5,794

3,4064,766

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 ExportFuel 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

3.6850 3.31653.6850

3.3165

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

VATMARKETING MARGINCONSV. FUNDOIL FUND (1)M. TAX B./LITRETAX B./LITREEX-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 CapacitySugar 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…

WorldWorldThailandThailand

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

1.5269 1.4942

0.00

5.00

10.00

15.00

20.00

25.00

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

Bah

t/Lt.

VATMARKETING MARGINCONSV. FUNDOIL FUND (1)M. TAXTAXEX-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