Bangkok--3 Aug--PTT
Mr. Viset Choopiban, the Caretaking Minister of the Energy Ministry, revealed that in response to His Majesty The King’s Royal Initiative on bio-diesel development for oil substitution purpose on December 4, 2005, the government has acted accordingly in which the Energy Ministry has set up the product development and production plan as well as the demand forecast of bio-diesel. . Current total production capacity for the bio-diesel made from the used vegetable cooking oil, stearin, and crude palm oil is at 350,000 liters/day or 10.5 million liters/month. The combined service stations serving bio-diesel owned by PTT Public Company Limited (PTT) and Bangchak Petroleum Public Company Limited (BCP) are 35 with the total sell volume of 113,000 liters/day or 3.4 million liters/month (information as of June 06). PTT and BCP have the policy to expand their bio-diesel service stations to reach 200 stations within this year. For the grass-root community, the Energy Ministry expects to promote bio-diesel production and usage in 70 communities by the end of this year at the production capacity between 7,000 to 21,000 liters per day. Under the support program, the government will urge the local people to produce bio-diesel by using local raw material such as the used cooking oil, palm oil and jatropha. This bio fuel will replace the diesel used in the agricultural sector for 2 million liters per year.
Today (August 3, 2006), PTT signed two joint study contracts for the production of bio-diesel with Thaksin Palm (1978) Co., Ltd. for the production capacity of 300,000 liters/day and with Bio Energy Plus Co., Ltd for 200,000 liters/day. Palm will be used as the main feed stock. Combining to the existing 600,000 liters/day production capacity of bio-diesel which is the by-product of PTT’s oleo chemical industry, total production capacity of bio-diesel by PTT Group will be about 1.1 million liters/day. At such productivity level, the Energy Ministry is confident that the commercial development of bio-diesel will come at the faster pace, and will lead to the development stability of bio-diesel. The project will also be an example and guideline to attract more investment from interested private investors. In addition, it will also help create price stability of domestic palm and palm oil in the short term, and attract more farmers to grow palm in which the Ministry of Agriculture and Cooperatives has set the planting target at 4 million rais within the year 2009. The project is also expected to help facilitate the growth of production of the high value products in the oleo chemical industry.
Mr. Prasert Bunsumpun, President of PTT, said PTT will join hands with Thaksin Palm and Bio Energy Plus to study the production of Methyl Ester from palm to be used as feed stock for bio-diesel production. The project can possibly reduce oil import, minimize the problem of air pollution, and boost income to farmers. Under the joint project with Thaksin Palm, there will be a construction of ‘B100’ 300,000 liters/day bio-diesel production plant using crude palm oil as feed stocks in Surathani Province. The completion of the plant is scheduled at 2008. On the joint project with Bio Energy Plus, there will be a construction of ‘B100’ 200,000 liters/day bio-diesel plant in Bang Pa In Industrial Estate by using stearin from the palm oil refinery as feed stocks. The plant is expected to be completed in early next year. Total production capacity of B100 from the two plants will be 500,000 liters/day. Combining with the 600,000 liters/day production capacity from Thai Oleo Chemical Co., Ltd. (TOL) to be completed in the third quarter of 2007, PTT will have sufficient supply to serve its bio-diesel markets throughout the country (Currently, PTT has total sell of diesel at 16 million liters/day. Therefore, it is possible for the earlier launch of B10 in some area prior to the official scheduling in 2012.) Thus, the 1.1 million liters production of B100 can replace oil imports for Bt8.1 billion per year, and create Bt6.5 billion worth of income per year for the farmers. The projects bring about the sustainable development between the country’s energy and agriculture sectors through the highest utilization of the country’s resources in accordance to His Majesty The King’s Royal Initiative.
Mr. Prasert added that PTT has been continuously supporting the development projects of bio-diesel. Earlier, PTT involved in the bio-diesel production plant project of TOL which is the subsidiary of PTT Chemical Public Company Limited. The construction of TOL’s bio-diesel plant is now completed and expected to start its operation in the third quarter next year. Furthermore, PTT also has a long term project to develop the fully integrated bio-diesel project starting from seeding, planting, and managing a complete cycle from up stream to down stream. PTT will also expand into the related businesses in order to set up as a model for bio-diesel development in Thailand in which PTT has joined hands with the CP Group over the joint study project.