Potential strong for Thai production hub

Experts taking part in EcoInnovAsia 2008 yesterday stressed Thailand's potential to become one of the leading production hubs for biofuels and bioplastics.

"Thailand has advantages in rich biomass and renewable resources such as cassava and cane. Although bioplastic demand is growing rapidly, people still hesitate to jump into the bioplastic business due mainly to worries of economic value," said Ramani Narayan, a professor at Michigan State University in the United States.

The conference hosted by the National Innovation Agency gathered the world's leading experts and key players in biofuel and bioplastics to share new technologies and facilitate new partnerships and incentives to invest in innovative businesses in Thailand.

Narayan said bioplastic production was just starting, but would become the global trend within five years.

The concept behind the use of bio-feedstock is to reduce the carbon footprint. Maintaining the current level of carbon dioxide, resulting in global warming, can be done by using renewable biomass crops to manufacture carbon-based products, he said.

Each country's government will play an important role in supporting this industry, he said, adding that many countries including the US, Japan and Germany have passed laws to force their citizens to use environmentally friendly products.

"Although I have no idea about Thailand's market size for plastics, I am confident that demand for bioplastic products will replace petroleum-based plastics rapidly if the government launches an active policy to encourage the use of green products," he said.

Jens Hamprecht, head of global business management for biopolymers at BASF, the world's leading chemical company, said demand for bioplastics was about 60,000 tonnes a year and growing by more than 20 per cent annually.

"The mega-trend of global warming will push up demand for bioplastic and biodegradable products. I think that this situation will also happen in Thailand where there are plentiful resources to produce bio-products," he said.

In July, the government approved Bt1.8 billion to prepare a five-year development road map for the bioplastic industry. The National Innovation Agency will manage the budget and implement the road map next year.

Agency director Supachai Lorlowhakarn said the budget would be used to improve crop productivity, transfer advanced technology, build the bioplastic business and determine standards.

"According to our road map, we target to encourage the private sector to set up at least three plants that manufacture and supply bio-resins to local plastic transformers," he said.

This will help complete the bioplastic supply chain, particularly the upstream process, as well as make Thailand well recognised in the global market of environmentally friendly products, he added.

Horst Hippler, president of Karlsruhe University in Germany, said the world was stepping up to the second generation of biofuels, which are made of cellulose.

The first generation was produced from cane and starch, which had raised wide discussions about the trade-off between food and fuel supply.

"Although Thailand has no problem about raw materials, it should be aware of market prices and the imbalance between food and alternative fuels when promoting the first generation of biofuel," he said.