“Alternative Fuel Policy for Thai Transportation”

1

Automotive Summit 2014 “Green Mobility Changing the World”

20 June 2014

Sirinthorn Vongsoasup Energy efficiency expert

Outline

2

AEDP 2012 - 2021

Supporting policies

Current status

Next steps

3

Target - 25% of RE in total

energy consumption by 2021

Biofuel targets

Ethanol Biodiesel Advanced

biofuel

9 ML/day 7.20 ML/day 3 ML/day

Alternative energy development plan (AEDP)

Solar & Wind Hydro power

Bioenergy New energy

Biofuel

Total electricity

target 13,927 MW

Total heat target

9,800 KToe

Biofuel supporting polcies

4

Ethanol - Supporting policies

Price structure

PR

Gas stations

E85 cars

Manage price structure to give E20/E85 incentives

Increase E20/E85 gas stations

Increase incentive for E85 cars using tax structure

Continuously raises people awareness of E20/E85

Yield Increase feedstock plants’ yields

Law & Regulations

Upstream policy

Midstream policy

Downstream policy

Improve related law and regulations

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Cooperation between organizations

• Ministry of Energy launches B7 beginning in Jan 2014

• Ministry of Energy support at least 1 million liters of BHD production and

consumption by 2017 • Dept. of Energy Business specify the BHD characteristics

• Energy Policy and Planning Office formulate BHD price structure

• Dept. of Alternative Energy Development of Efficiency deal with palm oil management system

Biodiesel

Bio-Hydrogenated Diesel (BHD)

Ministry of Agriculture

and Cooperatives

Expand oil palm plantation area, Improve oil palm yield and palm oil

percentage

Ministry of

Commerce Balance palm oil stock in Thailand and report to DEDE two times per month

Ministry of Science

and Technology Develop algae cultivation techniques and other advance biofuel

technology for price competitiveness

Biodiesel - Supporting Policies

Current Status

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Current status : Ethanol

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Thailand Ethanol Feedstock

1. Molasses (Sugar derivative) Sugarcane plantation area

= ~ 1.35 million hectares

= ~ 13,457 sq.km

= ~ 8.54% arable land in Thailand

2. Cassava Cassava plantation area

= ~ 1.28 million hectares

= ~ 12,768 sq.km

= ~ 8.10% arable land in Thailand

In 2012, 2 MT out of 4.4 MT of

molasses were used to make

488 M.Liter of ethanol.

In 2012, 0.44 MT out of 25 MT

of cassava were used to make

73 M.Liter of ethanol.

In 2013, ~ 2.7 MT out of 4.5 MT

of molasses were used to make

629 ML of ethanol

In 2013 : ~ 1.68 MT out of 28 MT

of cassava were used to make

264 ML of ethanol

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Current Ethanol Production Plant 11 Molasses 6 Cassava/Starch 4 Hybrid

Ethanol production capacity

Feedstock No. of

plants

Total cap.

(Ml/day)

Molasses 11 2.41

Cassava 6 1.68

Molasses and Cassava 4 0.7

TOTAL 21 4.79

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All Flex fuel cars (FFV)

Gasohol fuel stations and vehicles

11

E10 stations are well

spread over Thailand

Most cars manufactured since 1995

Most cars manufactured since 2008

194 271 542

830

1311

2045 2273

4 5 10 38 67 280 352

2008 2009 2010 2011 2012 2013 Q1/2014

สถานีบริการ E20 (แหง)

สถานีบริการ E85 (แหง)

Ethanol uses

Source - department of energy business

Ethanol usage ML/day

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10.22 8.37 8.31 8.54 8.90

2.09 1.62

9.21 12.02 11.63 10.91 11.10

17.44 16.91

0.08 0.23 0.38 0.61 1.00 2.64 3.29 0.00006 0.00068 0.01 0.02 0.10 0.39 0.68

0

5

10

15

20

25

2008 2009 2010 2011 2012 2013 Q1/2014

Fuel

usa

ge (M

L/da

y)

ULG E10 E20 E85

0.94 1.25 1.24 1.23 1.39 2.60 2.92

2008 2009 2010 2011 2012 2013 Q1/2014

Phase out ULG 91

(Start Jan 2013)

Ethanol export

Thailand export ethanol to

• Philippines

• Singapore

• South Korea

• Japan

Ethanol export

Thailand DO NOT import ethanol for fuel

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0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012 2013

14.9

65.8

15.6 48.2

139

303.87

61 Et

hano

l exp

ort

(ML/

year

)

Current status: Biodiesel

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Thailand biodiesel policies

Oil palm plantation in Thailand

Source : Department of Internal Trade of Thailand, Ministry of Commerce

There are only some certain area suitable for oil palm

plantation in Thailand (e.g. such as Southern and Eastern part)

Oil palm plantation = ~ 7,520 sq.km

= ~ 4.77% arable land in Thailand

Oil palm

B100 consumption 2.88 ML/day

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CPO 2.13 MT

Domestic

Consumption

0.96 MT

Biodiesel

Production

0.77 MT

Export

0.57 MT

Stock at year end

0.20 MT

2013 No CPO Import

Thailand B100 capacity

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Feedstock

Registered capacity

No. of

factories

Capacity

(ML/day)

CPO/RBDPO/Palm stearin 9 4.56

Palm stearin 2 0.40

Total 11 4.96

9 CPO/RBD/Stearine

2 RBD/Stearine

Biodiesel (B100) uses

Source - Department of energy business

Average daily usage of biodiesel (B100)

Thailand mandated 7% biodiesel (B7) blend

for every liter of diesel sold since Jan 2014

17

0.17

1.23 1.67 1.646 1.725

2.423 2.881

3.575

2007 2008 2009 2010 2011 2012 2013 Jan - Feb2014

B100

Usa

ge (M

L/da

y)

3.355

Next steps

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Next steps: Biofuel research and development

Replacing petroleum diesel

New Generation

Biodiesel

Synthetic Fuel

Technology Ethanol Substitution

for Diesel

Algae Jatropha

Diesohol

ED95

BHD (BioHydrogenated Diesel)

BTL (Biomass to Liquid)

DME (Dimethyl Ether)

FAEE (Fatty Acid Ethyl Ester)

Dies

el

Hydrous

Ethanol

2nd Generation Ethanol Replacing petroleum gasoline

Cellulosic ethanol

Sweet sorghum

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Thank you