Too few fuel stations selling E85 gasohol and concerns about ethanol supplies were highlighted yesterday as the main obstacles to the government's policy of promoting flexible-fuel vehicles (FFVs).
At a seminar on FFV promotion hosted by the Alternative Energy Development and Efficiency Department, PTT's petroleum research and development manager Ratanawalee Inochanont said her company was fully committed to promoting E85.
However, the problem is low demand for the fuel, which contains 85 per cent ethanol. Every E85 dispenser requires an investment of Bt3 million, she said.
Ratanawalee also said that if E85 was more popular, refineries could be in trouble because they would have to find ways to manage their excess petrol production.
Bangchak Petroleum's senior manager for fuel product development Ithikhun Srisopon admitted that it was costly to increase the number of E85 dispensers with relatively low demand. Oil retailers are therefore focusing on selling products with lower ethanol content.
He said the market should be led by demand. More dispensers could be expected if the number of FFVs was higher. These vehicles can run on all types of petrol and ethanol products.
Bangchak currently operates three stations that sell E85 and the number will increase to five by the end of this year.
Energy Department deputy director-general Suthep Liamsirirern said that all planned incentives would be rolled out to promote FFVs, which could run on all fuels with an ethanol content ranging from 10 to 85 per cent. This would help to reduce oil imports.
In April, the Cabinet approved a reduction of excise tax for FFVs, produced locally or imported. Subsidies are also keeping the price of E85 at Bt5.30 per litre below the price of 91-octane petrol.
Suthep said that up to June, 1,861 FFVs had been sold in Thailand. However, Mitsubishi plans to launch an FFV production line in the current third quarter, which should increase the number of FFVs in Thailand to 7,300 units this year.
Seksan Phrommanich of Petrogreen, an ethanol producer of the Mitr Phol Group, gave an assurance of consistent ethanol supplies, thanks to cooperation between the Energy and Agriculture ministries. If production goes as planned, ethanol supplies will be sufficient to cope with as many as 400,000 FFVs in the country.