Thailand’s Department of Alternative Energy Development and Efficiency has signed a memorandum of understanding with Bangchak Petroleum and three logistics operators to use B20 biodiesel blends in their vehicle fleet. The pilot project will cost BHT 115 million baht (USD 2.8 million) and will be funded from the Energy Conservation Promotion Fund.

A feasibility study is also being conducted to evaluate the use of B10 biodiesel in military and government transports, according to Energy Minister Anantaporn Kanjanarat.

The minister is confident that Thailand, which currently has a biodiesel production capacity of 4.2 million litres per day, could produce sufficient palm oil to produce biodiesel. Anantaporn expects biodiesel demand to increase to more than 10 million liters per day, when B10 and B20 become commercially available.

The fuel would be available commercially after the ministry negotiates with vehicle manufacturers to produce vehicles that run on biodiesel.