Globals see Kingdom as ethanol manufacturing hub

Their Singaporean offices have discussed investment opportunities with Thai agencies in their search for countries offering privileges in the production of biofuel instead of focusing only on fossil fuel.

Some of them have already spoken with local sugar millers, an Energy Ministry source said last Wednesday.

The successful manufacturing and marketing of ethanol is predicted to raise the price of fuel crops, particularly sugar cane, from Bt807 a tonne to Bt1,300, based on an ethanol price of Bt22 to Bt23 a litre.

Thailand has large plantation areas for both sugar cane and cassava, and these crops are cheaper here than in other countries where cassava now costs just more than Bt2 a kilogram on average.

"The investment will not only encourage the local production of ethanol, but also get more local people and industries to turn their eyes to alternative energy," the source said.

Thailand will also benefit from the price gap when ethanol is exported.

So far, ethanol is not widely produced here, and molasses is the most popular feedstock. Among the 47 manufacturers licensed to produce ethanol, only nine with a combined annual capacity of 150,000 tonnes are actually operating.

Ethanol has also not been warmly received by users. The government should launch a campaign to educate the public on ethanol quality, the source said. Ethanol should be put on the national agenda by forcing every filling station to offer more ethanol-based fuel.

"Brazil took about 30 years to convince its people to use ethanol

solely. The Thai government should start encouraging greater consump-tion and production now," the source added.