National Biofuels Policy, Deployment and Plans - Thailand

By
Mr. Krairit Nilkuha Director-General

Department of Alternative Energy Development and Efficiency

Ministry of Energy, Thailand
Bangkok Biofuels 2009 Sustainable development of biofuels 7-8 September 2009, Bangkok

Presentation Format

1.

Current Thailands Energy Status and Import of crude oil

2. Biofuels Policies and Development Plans 2.1 Ethanol Development Plan 2008-2022

2.2 Biodiesel Development Plan 2008 - 2022

1. Current Thailands Energy Status and Import of crude oil

Crude Oil
Unit : 1000 barrels/day

Description Usage Production

2005 1,520 743

2006 1,548 765

2007 1,604 794

2008 1,622 850

Jan- Mar

2009

1,618 882

Import (Net)
Import/Usage(%) ratio(%) Usage Production Import (Net)

980
64 4.8 9.9 -0.9

978
63 1.8 3.0 -0.2

998
62 3.6 3.7 2.0

942
58 1.2 7.1 -5.6

909
56 -4.4 6.4 -16.3

GDP (%)
Ref. : EPPO, 2009

4.5

5.0

4.8

2.6

-7.1**

1. Current Thailands Energy Status and Import of crude oil

Crude Oil and Petroleum Price

$/BBL
Dubai ULG95 HSD

2007
68.27 82.82 84.96

2008
94.18 103.27 120.25

2009
Jan. 49.06 59.50 57.13 44.12 52.23 58.36 Feb. 43.09 57.97 49.10 Mar. 45.59 54.20 52.10

2009
Apr. 50.10 60.46 58.09 May 57.85 68.50 64.06 23 Jun. 69.25 77.27 76.39

180 160 140 120 100 80 60 40 .. 49

Dubai ULG95 HSD

.. 49

.. 49

.. 49

.. 50

.. 50

.. 50

.. 50

.. 51

.. 51

.. 51

.. 51

.. 52

.. 52

23 2552

1. Current Thailands Energy Status and Import of crude oil

Oil Crisis

Imported crude Oil Appox. 289,316 M in 2008

1. Current Thailands Energy Status and Import of crude oil

Solutions
Utilize alternative energy as a major energy supply of the country for replacing oil import

NGV

Gasohol

Oil crisis

Economy

Biodiesel

Efficient Energy use

2.1 Ethanol Development Plan 2008 - 2022

E20
E85 ,promote FFV
2,000 FFVs

390,000 FFVs

1,070,000 FFVs

08 51
Ethanol Demand (ML/day)** 1.24 -

09 52
1.34 28

10 53
2.11 60

11 54
2.96 30

12 55

13 56

14 57

15 58

16 59
6.2

17 60

18 61

19 62

20 63

21 64

22 65
9.0

Budget
(M)

160
Sustainable ethanol production R&D and promote ethanol logistic , ethanol depot for export Promote ethanol production from molasses and cassava

280

Ethanol Market

Ethanol Production

Promote ethanol production from sugar cane Promote by-product utilization from ethanol production ex. Acetic acid R&D yield of cassava 3.5 to 4.5 ton/rai/yr in 2012

Feed Stock

R&D yield of sugarcane 11.8 to 15 ton/rai/yr in 2012 Sustainable feed stock for ethanol production R&D 2
nd

generation of ethanol production (Cellulosic)

Promote 2

nd

generation of ethanol production

R&D

value added ex. sawage study E85

2.1 Ethanol Development Plan 2008 - 2022

Ethanol Production

Existing Ethanol Plants 10 Molasses 1 Cassava 2 Molasses/Cassava Licensed Ethanol Plants 16 Molasses/Sugar Cane 24 Cassava 8 Molasses/Cassava/Sugar Cane

Previously approved license for 48 companies Total capacity 12.5 million liters/day Molasses as raw matl = 16 companies with total capacity 2.89 million liters/day Cassava as raw matl = 24 companies with total capacity 8.39 million liters/day Cassava & Molasses as raw matl = 8 companies with total capacity 1.22 million liters/day Currently 17 existing plants totally installed capacity 2.58 million liters/da 11 Producing Plants, approx. 1 million liter/day In 2009-2010 10 new ethanol producers, totally installed capacity 3.97 million liters/day Totally installed capacity 5.85 million liters/day in 2010

2.1 Ethanol Development Plan 2008 - 2022

Gasohol service stations & Volume sale

Gasahol Usage
Total GSH95, GSH91, E20 and E85 Usage 11.68 MLPD (1-22 Aug. 09)
Oil Companies
Ptt. Bangchak Shell ESSO Chevson IRPC oil Ptt. retail Petronas
2004 2005 2006 2007 2008 2009

Total Service Stations Jun. 52 1,135 857 589 550 425 1 146 116 143 183 2 69 4,216

GSH Service Stations Dec.49 1,211 690 548 503 296 39 88 58 21 12 0 3,466 Dec.50 1,185 756 548 513 370 1 146 98 106 35 64 3,822 Dec.51 1,139 852 578 550 423 1 146 117 143 144 2 71 4,166

Total stock of ethanol 44.9 ML.

@ Oil companies 28.0 ML @ Ethanol producer 16.9 ML Total GSH Service station 4,216 stations, 12 oil companies
14

Million Liter/Day

12 10 8 6 4 2 0

11.69 ML/day 11.68 ml/day

SUSCO Pak tai Thai oil Rayong Pure

Total

GSH Service Stations Jun. 09 GSH E85 GSH E20 Ref. DOEB, 2009 4 223 Update : Sep 09

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2.1 Ethanol Development Plan 2008 - 2022

Thai and Global Ethanol Price

40 35 30

Thailands Ethanol export

1 producers exported ethanol 0.19 ML

CBOT

BMF(Brazil)

Thai

CEPEA (Brazil)

Producers

Export (ML.) May 09 Accum. (Jan.08May09)*

Destination

Baht/Liter

25 20

Khonkan alchohol

13.89

Singapore, Philippines, Australia Singapore, Netherland, Arab Emirates ,Japan Taiwan Singapore, Taiwan, Korea, Indonesia Philippines

Petrogreen

0.19 -

37.74 0.14 21.65 0.0002 73.45

15 10 5
Jul-06 Jul-07 Jul-08 May-06 May-07 May-08 May-09 Mar-06 Mar-07 Mar-08 Nov-06 Nov-07 Nov-08 Mar-09 Sep-06 Sep-07 Sep-08 Jan-06 Jan-07 Jan-08 Jan-09 Jul-09

Thai Sugar Akarat Thai Ngun Total

Ref : Excise Department Jul. 09 Update: Sep. 09

2.1 Ethanol Development Plan 2008 - 2022

Supply & Demand for Ethanol Production
Million tons/yr

Description
Sugarcane Production

2009
66.46

2010
87.00

2011 95.00 4.47 1.4 0.50 2.57 1.76 1.8 33.30 8.69 22.05 2.56 1.19 4.05 2.95 2.96

Production Molasses
Domestic Usage (Beverage, animal feed, Msg.) Export The rest for ethanol production Ethanol from the rest of Molasses (ML/day) Ethanol production from Molasses Plants (ML/day) Production Domestic Usage (cassava, starch) Export Cassava The rest for ethanol production Ethanol from the rest of Cassava (ML/day) Ethanol production from Cassava Plants (ML/day) Ethanol (excluding Consumption) DEMAND of REDP

2.75
1.4 0.50 0.85 0.58 1.8 28.90 9.87 15.33 3.70 1.72 2.15 2.3 1.34

4.09
1.4 0.50 2.19 1.50 1.8 31.45 8.42 21.42 1.61 0.75 4.05 2.25 2.11

2.1 Ethanol Development Plan 2008 - 2022

Gasohol Measures 1 Market incentive Ethanol reference price Current price:
ULG95 E85 ULG95 E20 ULG95 Gasohol95 ULG91 Gasohol91 = 17.22-18.62 = 10.70-12.10 = 8.40-9.80 = 4.40 Baht/liter Baht/liter Baht/liter Baht/liter

= 20.21

Bath/liter

Update: Sep. 09

2.1 Ethanol Development Plan 2008 - 2022

Promote E85 and FFVs

Cabinet resolution 19 Nov. 08 National Agenda : Promote E85

Ministry of Finance: Reduction of customs from 80% to 60% for 2,000 imported FFVs (2,000 cc - 2,500 cc engine) until 31 Dec. 2009
Ministry of Energy: Rebate 3 % of excise tax by using oil fund for 2,000 imported FFVs (2,000 cc - 2,500 cc engine) before 31 Dec. 2009 and domestic FFVs before 31 Dec. 2010

Biodiesel Development Plan 2008 - 2022

Research on Biodiesel with fish boat Engines

B5 nationwide, B10 optional

08
Demand
B100 (ML/day)
1.35

09
1.35

10 11
1.35 3.02

12 13

14

15

16
3.64

17

18

19

20

21 22
4.50

Budget (M) B100 Marketing B100 Production Feedstock

129.75

37.4

29.4

19.4

450

330

Enforcement B2 Optional B5

Enforcement B5 Optional B10 Sustainable B100 production Biodiesel production from CPO and Sterine R&D production / Community usage Biodiesel standard development

Expanding Palm oil cultivation areas 2.5 million rai R&D Yield of palm 2.8 to 3.2 ton/rai/yr

Sustainable CPO production

R&D and promote value added of gycerline/small CPO extraction unit

R&D

R&D BTL / BHD R&D biodiesel production from seaweed ZERO waste of Jatropha for biodiesel production

Promote BTL and/or BHD, seaweed R&D Alternative feed stock for biodiesel production

2.2 Biodiesel Development Plan 2008 - 2022

Biodiesel Production
B100 producers 1. Bangchark Petroleum 2. Bio Energy Plus 3. Sun Tech Palm oil 4. Patum Vegetable Oil Provinces Bangkok Ayutthaya Prajeenburi Pathumtani

Installed Capacity (L/day)

50,000 100,000 200,000 800,000

5. Bangkok Renewable Energy 6. Green Power Cooperation 7. AI Energy 8. Veerasuwan

9. Thai Oleochemical 10. New Biodiesel 11. Pure Biodiesel 12. Siam Gulf Petrochemical Total
Ref : DOEB, June 2009

Chachoengsao Chumporn Samutsakorn Samutsakorn

Rayong Suratthani Rayong Petchaburi

200,000 200,000 250,000 200,000

685,800 220,000 300,000 1,200,000 4,405,800

2.2 Biodiesel Development Plan 2008 - 2022

Biodiesel Volume Sale (1-31 Aug. 09)

B5 Volume Sale 22.29 ML/day (B100 1.114 ML/day) Diesel(B2) Volume Sale 23.40 ML/day (B100 0.468 ML/day) Total volume of B100 1.583 ML/day
B100 in B5 B100 in B2 Total B100 1,582,587

2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0

Liter/Day

1,114,590

467,996

Update: Sep. 09

Jun-05 Aug-05 Oct-05 Dec-05 Feb-06 Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09

2.2 Biodiesel Development Plan 2008 - 2022

Biodiesel Service Stations & price

3,455 B5 service stations
Average Price in Jul. 09 Biodiesel = 27.55 /l. Methanol = 8.25 /kg. CPO = 22.80 /kg. FFB = 3.52 /kg.

3,600 3,300 3,000 2,700 2,400 2,100 1,800 1,500 1,200 900 600 300 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09

PTT

Service Stations

BCP

ESSO

SHELL

PTT RETAIL

RPC

CHEVRON(THAI)

SUSCO

PAK TAI

PETRONAS

UNIQUE GAS

Update: Sep. 09

2.2 Biodiesel Development Plan 2008 - 2022

Biodiesel Measaures 1. Market Incentive Retailed price of B5 is lower than Diesel. Current price : (3 Sep. 09) Diesel (B2) 27.19 /L B5 25.99 /L 2. Biodiesel Usage

Diesel (B2) was enforced nationwide on 1 Feb, 2008, while B5 will be enforced nationwide in 2011 by expanding palm oil cultivation 2.5 million rais in 2012 and using the rest of palm oil from exporting and domestic consumption.

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