Thailand aims to become ethanol-trading hub in Southeast Asia

Thailand’s Ministry of Energy has urged the Customs and Excise Departments to loosen the strict rules, which are hindering the export of ethanol if the country is to become an ethanol trading hub in Southeast Asia. According to the Bangkok Post, Kurujit Nakornthap, the Energy Ministry’s deputy permanent secretary for energy said, “Thailand is tops among ASEAN countries in terms of promoting the use of biodiesel and gasohol.” Asserting that the country can become an ethanol-trading hub in Southeast Asia, Kurujit said, “But more needs to be done to reduce the cost of ethanol exports that in turn will help promote the country as a regional trading centre.”
The country now produces 3.5 million liters a day, which exceeds the daily domestic demand of 1.3 million liters. Kurujit said although the excise tax on ethanol for fuel production is zero, the Finance Ministry has maintained strict control, because of concerns that some companies would take advantage of the exemption and use ethanol to make alcoholic drinks instead.
Additionally, the Energy Ministry called on the private sector and urged it to build large-scale ethanol storage at ports so that the docking time for ships could be reduced. “Current large ethanol storage near docking areas is not enough, which means ships have to wait longer hours for ethanol trucks to arrive one by one, leading to high operating costs,” Kurujit said.
In an effort to increase gasohol consumption, the government will begin phasing out regular petrol from the Thai market starting in 2013. However, the subsidy on natural gas for vehicles (NGV) has made it more appealing to motorists, thereby lessening the potential use of ethanol-based fuels. “The best way [to counter that] is to allow prices to float in line with the market,” Kurujit said. As oil prices continue to rise, ethanol-based fuel or gasohol has become a favorite choice for motorists. There are now 4,000 retail stations for gasohol, and more than 900 of these sell E20. “If domestic gasohol usage can increase to 2 million liters a day, it will help form a foundation for growing gasohol trade with Thailand at the centre,” Kurujit added.
By 2021, the national Renewable and Alternative Energy Development Plan intends to increase the use of alternative energy to 25% of the country’s energy mix, and ethanol consumption is expected to reach 9 million liters a day. (October 31, 2012)