Speaking yesterday at a seminar entitled "Biodiesel: From Horticulture to National Energy," acting permanent secretary Pornchai Rujiprapha said the ministry was looking for ways to encourage more people to grow palm oil trees.

"The ministry will propose the new government support oil-palm growers with soft loans and palm seedling arrangements," said Pornchai, adding that retailers were keen to begin selling biodiesel.

Pornchai said the ministry would seek to speed up development of palm plantations on 4 million rai of land. Growing on these projects is expected to begin in 2009.

Currently, 420,000 rai of land has been registered by crop farmers to grow oil-palms.

By the end of this year, 250 service stations are expected to be selling biodiesel. Of these, 100 will belong to PTT Plc with the rest operated by Bangchak Plc.

In addition, Pornchai said the ministry was in talks with other oil retailers including Shell, Caltex, and Esso, about selling biodiesel at their outlets.

Alongside the plantation development plan, Pornchai said the ministry would next year encourage more petrol stations to sell B5 biodiesel, which is diesel with 5 per cent biofuel.

He said the ministry aimed to have biodiesel sold all over the country by 2011.

Energy Reporters

The Nation