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Fri, March 30, 2007 : Last updated 21:47 pm (Thai local time)



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Home > Business > Don't be pushy on biodiesel: Toyota





Don't be pushy on biodiesel: Toyota

Toyota Motor Thailand has voiced concerns over the Energy Ministry's plan to launch a compulsory measure to promote biodiesel, saying that the state should wait until raw material supplies are stable and biodiesel standards have improved.

Ninnart Chaithirapinyo, vice chairman of Toyota's Thai business unit, said yesterday that the ministry should now focus on promoting the production of biodiesel at community level as well as campaigning for higher consumption.

"The government should not compel refiners to mix B100-formula biodiesel in diesel, not until it is ready in terms of raw materials and the standards of biodiesel are improved," he said on the sidelines of the opening of the 28th Bangkok International Motor Show.

On Wednesday, Energy Minister Piyavasti Amranand unveiled the ministry's plan to launch a compulsory measure to have diesel mixed with vegetable-based biodiesel.

Ninnart suggested that the government adopt the strategies used to promote gasohol. Then the state looked into the supply of ethanol and focused on the campaign. With consistent supplies of raw materials, the Oil Fund's subsidies are in place to keep gasohol prices cheaper than petrol prices. This boosts gasohol consumption, aside from assuring auto companies of the compatibility of the alternative fuel with all fuel-injection engines.

In the case of biodiesel, which is only 70 satang cheaper than conventional diesel, Ninnart said that its price was not enticing enough to encourage the public to use it. Meanwhile, no auto companies have come out to assure the public of its compatibility with engines.

"We're supporting the government in promoting biodiesel as this would reduce oil imports, reduce carbon dioxide emissions and help local farmers. However, it needs some time to further develop the alternative fuel," Ninnart noted.

He added that a rush for biodiesel and uncertain supplies could lead to extraordinary prices, as in the case of ethanol.

At the motor show's opening ceremony, Piyasvasti also announced that the ministry and all auto companies have joined hands in posting gasohol-promoting stickers on all vehicles compatible with gasohol. "This PR offensive should encourage motorists in general to use gasohol, as well as those who plan to buy new vehicles at the motor show. Meanwhile, this should raise the public confidence in gasohol," he said.

Though pushing for higher consumption of gasohol, Piyasvasti said it was still not the right time to scrap octane-95 petrol distribution, despite demand from ethanol producers who claim the delay is affecting their operations.

Piyasvasti said the state must thoroughly consider all issues, including about 500,000 carburettor vehicles nationwide which can use only petrol, not gasohol.

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