The National Energy Policy Council yesterday decided to require all oil refiners to mix biodiesel with diesel from April 1 next year.

The amount of biodiesel B100 in the fuel will be no more than 2 per cent, said Energy Minister Piyasvasti Amranand, who chaired the meeting.

The council will issue a regulation next week on high-speed diesel quality to set the formula for using the vegetable-based fuel, but the enforcement date is slated for next year.

While the regulation waits for enforcement, the ministry will devise incentives to encourage a higher level of biodiesel in fuel, particularly the subsidy from the Oil Fund of Bt12.31 per litre.

"With the subsidy, biodiesel B100 will be priced similarly to diesel," Piyasvasti said. At present, biodiesel is priced at Bt24.55 per litre against the ex-factory diesel price of Bt17.23.

The council approved the regulation despite concerns from a Toyota Motor Thailand executive over the quality as well as supply of B100.

Piyasvasti said the regulations would be announced, as it was found the mixture of only 2 per cent would not harm engines, but rather lubricate them better. "More importantly, the regulation means the consumption of biodiesel B100 will rise to 1 million litres a day, from 42,000 litres at present."

 Meanwhile, PTT and Bangchak Petroleum will be encouraged to sell more B5 diesel, which is 70 satang per litre cheaper than diesel. The B5 formula contains 5 per cent biodiesel.

Energy Business Department director-general Metta Banterngsook said yesterday that the mixture with biodiesel at 2 per cent would not damage engines. "This is an accepted fact in foreign countries and local car companies also agree to the proposal. However, we may need to further discuss this if the mixture ratio is to be raised to 5 per cent."

Energy Policy and Planning Office director-general Viraphol Jirapraditkul said that B100 supply would be sufficient for growing demand in the future, as five more producers are coming on stream by the end of this year with a combined capacity of 1 million litres a day.

Piyasvasti added that the council also approved the terms of reference for the purchase of 1,030 megawatts of power from small power producers (SSPs). The electricity price will be fixed for seven years, whereby SPPs will receive an extra amount of so-called "adder" for generating power from alternative materials. For example, windpower-generated power is entitled to an adder of no more than Bt8 per unit with waste and wind power at Bt2.50 per unit.

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