Biofuel Status and Policy 18 th September 2015
Thailand Integrated Energy Blueprint Power Development Plan PDP 2015 Gas Plan Energy Efficiency Development Plan EEDP 2015 Energy Security Promote energy security of Thailand Support the 11 th National Economic and Social Development Plan Economy Smart Grid TIEB 2015-2036 Oil Plan Establish sustainable whole-chain energy business Promote long-term country development AEDP 2015 Alternative Energy Development Plan Ecology Reduce negative impacts to the environment
Timeline of Thailand AEDP National Energy Policy Council Acts 2009 2011 2013 2015 NOW Renewable Energy Development Plan 15 yrs (2008-2022) Alternative Energy Development Plan 10 yrs (2012-2021) Alternative Energy Development Plan 10 yrs (2012-2021) (revised edition) Alternative Energy Development Plan (2015-2036) 20.3% 25% 25% 30% Renewable Energy in total energy consumption Renewable Energy in total energy consumption Renewable Energy in total energy consumption Renewable Energy in total energy consumption
New AEDP Targets (2036) Category Example Target Use (2036) Electricity 20% Solar Wind Biomass Biogas Waste Heat Biomass Biogas Solar heater Geothermal 35% Fuel Ethanol Biodiesel 25%
GASOHOL Ethanol-blended gasoline
Thailand Ethanol Feedstock - 2014 Sugarcane Area 8.46 M.Rai Yield 12.3 T/Rai/Yr Output 104 MT Sugarcane Juice Cassava Area 8.7 M.Rai Yield 3.6 T/Rai/Yr Output 31 MT Molasses 4.7 MT Used to produce ethanol 62% of molasses 0.9 MT 6% of cassava Used to produce ethanol 2.9 MT 66 ML Used to produce ethanol 1.9 MT 1 Hectar = 6.25 Rai Sources - DEDE Ethanol 1059 ML (3 ML/day)
Ethanol Production Capacity Feedstock No. of plants Total cap. (Ml/day) Molasses 11 2.26 Cassava 7 1.455 Molasses and Cassava 4 1.25 TOTAL 22 4.965 Current Ethanol Production Plant 11 Molasses 6 Cassava/Starch 4 Hybrid Sources - DEDE
Gasohol Fuel Stations and Vehicles E20 stations E85 stations 2665 2836 2045 E10 stations are well spread over Thailand 1311 830 542 596 678 194 271 280 4 5 10 38 67 2008 2009 2010 2011 2012 2013 2014 May-15 Most cars manufactured since 1995 Sources - DOEB Most cars manufactured since 2008 All Flex fuel cars (FFV) 8
Ethanol Consumption UNIT Million Liter per day Gasoline E10 (95) E10 (91) E20 E85 0.00068 0.10 0.39 0.91 0.01 0.02 0.23 0.38 0.61 1.00 2.64 3.68 3.87 4.25 5.10 5.81 9.14 7.49 8.14 7.38 5.82 5.29 0.89 4.01 8.49 8.30 9.85 10.94 8.37 8.31 8.54 8.90 2.09 1.52 1.59 2009 2010 2011 2012 2013 2014 Jan-May 2015 Ethanol usage ML/day 1.25 1.24 1.23 1.39 2.60 3.25 3.50 10% replacement of gasoline 2009 2010 2011 2012 2013 2014 Jan-May 2015 Sources - DOEB
UNIT Million Liter per day Targeting Ethanol Consumption 2026 2036 7 ML/day 11.3 ML/day Ethanol Percentage 7% 12% 14% 13% 24% 32% Gasoline-Base Demand (ML/day) 35 30 25 20 21.11 22.55 23.44 24.94 29.00 35.00 Gasoline Base Ethanol 7.00 3.50 1.39 2.60 3.25 11.30 15 10 5 19.72 19.95 20.19 21.44 22.00 23.70 0 Source: DOEB Jan-Jun 2012 2013 2014 2015 2026 2036
Related Policies Demand Supply Promoting Ethanol Consumption Ethanol Consumption Promoting Policies 1. Increase gasohol demand through marketing mechanisms (Price incentive/gasohol service coverage/pr) 2. Increase share of gasohol vehicles (Increase E20/E85 compatible car) Promoting Sustainable Ethanol Production Ethanol Production Promoting Policies 1. Promote more sustainable and more efficient ethanol feedstock plantation/production 2. Increase ethanol production efficiency (Reduce production cost + logistic cost)
BIODIESEL-BLENDED DIESEL Fatty Acid Methyl Ester
Thailand Biodiesel History History of biodiesel blend in Thailand March 2011 B2 (Optional) May 2011 B3-B5 (Mandate) Jan 2012 B5 (Mandate) Jan 2014 B7 (Mandate) 2008 B2 (Optional) March 2010 B3 (Optional) Department of Energy Business has announced the biodiesel B7 blend mandate since January 2014
Thailand Palm Situation Oil palm There are only some certain areas suitable for oil palm plantation in Thailand (eg. Southern and Eastern) Oil palm plantation area : 7,520 km 2 (4.77% of arable land) Crude palm oil 2.24 MT No CPO import Domestic consumption Biodiesel Production Export Year End Stock Oil palm plantation in Thailand 0.96 MT 0.83 MT 0.25 MT 0.20 MT Source: Department of Internal Trade Average 2014 B100 consumption : 2.89 ML/day
Biodiesel Production Plant Feedstock Registered capacity No. of factories Capacity (ML/day) CPO/RBDPO/Palm Stearin 6 3.5 Palm Stearin 5 1.4 Total 11 4.9 Department of Energy Business, August 2015 15
B100 Use (Million Liters/day) Diesel usage Million Liters/day Biodiesel Usage Thailand mandated 7% biodiesel (B7) blend for every liter of diesel sold since Jan 2014 3.5 3.0 2.5 47.42 49.68 49.64 51.40 54.72 55.92 56.96 60.08 60 50 2.0 B100 Diesel 40 1.5 1.0 0.5 1.23 1.67 1.65 1.72 2.42 2.88 2.89 2.55 30 20 10 0.0 2008 2009 2010 2011 2012 2013 2014 Jan-May 2015 Thailand mandated B5 since Jan 2012 and B7 since Jan 2014 Blending percentage can be adjusted in accordance with palm oil supply abundance 0 Source - DOEB
B100 Use (Million Liters/day Biodiesel Percentage 4% Targeting Biodiesel Consumption 2026 2036 5 ML/day 14 ML/day 5% 5% 4% 10% 25% Diesel-Base Demand (ML/day) 60 50 40 54.7 55.9 56.4 59.7 51.0 57.0 Diesel Base Biodiesel 2.4 2.9 2.9 2.7 5.0 14.0 30 20 52.3 53.0 53.5 57.1 46.0 43.0 10 Source - DOEB 0 Jan-Jun 2012 2013 2015 2015 2026 2036
Related Polices 2016 2018 Phase2 Thailand excise tax scheme for B10 diesel eco-car Excise tax rate at 12% starting from 1 st Jan 2016 Completion of double-track railway infrastructure Option B10 B10 B20 2016 17 18 19 20 21 22 23 24 25 2026 27 28 29 30 31 32 33 34 35 2036 B10 Promotion Develop diesel-substitution fuel (both traditional and advanced) in terms of both feasibility and economically Develop higher %biodiesel compatible vehicles Promote B10 as an optional alternative fuel (Price incentive/service coverage/quality control) Tax incentives for vehicles that use high % biofuel (2026) Mandate B10 (2026) Promote B10 usage in transport and industrial sectors Promote B100 usage in agricultural machineries B20 Promotion Develop and improve new feedstock Promote production of advanced biofuel that can be commercially blended in higher percentage Promote consumption of higher-blend biodiesel as an optional alternative (Service coverage/quality Control) Excise Tax incentives for vehicles that use high % biofuel Promote consumption of biofuel-blended fuel in both transport and industrial sectors
THANK YOU bioethanol@dede.go.th Yongyuth Sawatdisawanee Director of Biofuel Development Bureau Department of Alternative Energy Development and Efficiency Ministry of Energy Email : Yongyuth_s@dede.go.th