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Bio-diesel Initiatives, potential and prospects in Thailand A review

Bio-diesel:Initiatives,potential and prospects in Thailand:A review

Manjula Siriwardhana ?,G.K.C.Opathella,M.K.Jha

Energy ?eld of study,School of Environment Resources and Development,Asian Institute of Technology,P.O.Box 4,Klong Luang,Pathumthani 12120,Thailand

a r t i c l e i n f o

Article history:

Received 2April 2008

Accepted 17September 2008

Available online 18November 2008Keywords:Bio-diesel Thailand

Energy policy

a b s t r a c t

Thailand experiences a great economic and industrial development and is the second largest energy consumer in South East Asia.Being a net oil importer,Thai government has declared a renewable energy development programme in order to secure sustainable development and energy security.Thailand spends more than 10%of GDP for energy imports and transport sector accounts for 36%of total ?nal energy consumption of which 50%is diesel.Diesel marks a huge impact on Thai economy.Thai government’s bio-diesel development strategy is to replace 10%of petro-diesel in transport sector by bio-diesel by 2012.The plan is to increase the use of bio-diesel from 365million liters in 2007to 3100million liters by 2012.This paper reviews the current status and potential of bio-diesel in Thailand and investigates and discusses the qualities and weaknesses of the proposed road-map.The proposed road-map de?nitely gives immediate solution for soaring oil prices,but the long-term economic,environmental and social impacts need to be examined.

1.Introduction

Bio-diesel is an environment friendly,biodegradable liquid fuel which is processed from edible or non-edible vegetable oil or animal fats.Direct use or blending,micro-emulsions,thermal cracking and transesteri?cation of crude vegetable oils have been explored as potential alternatives to diesel (Kalam and Masjuki,2008).Transesteri?cation is the dominant technological route for bio-diesel production in Thailand.As bio-diesel as same combus-tion properties as petro-diesel,the blends of diesel with bio-diesel can be used in compression-ignition (diesel)engines with little or no modi?cations (Demirbas,2007a,b,2008).

An interest on bio-fuel policies and use of bio-fuels increased since the 1990s.Fast developing countries in Asia are looking for locally produced renewable sources of energy specially because of soaring oil prices.These countries have the opportunity to strengthen their energy security and sustainable development and improve the environmental quality of the country as well (Mohan et al.,2006).Additionally,most of the developed countries are moving towards bio-diesel mostly because they are obliged to reduce their emissions of greenhouse gases (GHG)as agreed in the Kyoto protocol (Demirbas and Balat,2006).

The Thai government has introduced several strategies to reduce energy consumption and to make use of maximum available indigenous resources in energy supply (Pichalai,2005).

The Energy Conservation Program,the Renewable Energy Devel-opment Program and the Energy Ef?ciency Improvement Program are the most promising long-term strategies (Pichalai,2007).Thailand plans to increase the use of alternative fuels in transport sector (Pichalai,2005).Diesel accounts for more than 50%of transport fuel in Thailand.The roadmap is to develop raw materials and replace 5%of the total diesel consumption in the transport sector with bio-diesel by 2011and increase it up to 10%by 20121(Gonsalves,2006).The bio-diesel consumption of about 3100million litres in 2012will result in savings of foreign exchange of about US$675million per year (27billion Baht per year)(Gonsalves,2006).

Besides saving foreign exchange on energy imports,the bene?ts will also include reduction of fossil fuel consumption and decrease in emissions of hydrocarbons,sulphur oxides,carbon and particulate matter,resulting in improved environ-mental quality.Therefore,it will make positive impacts on global warming as well as peoples’health.2.Energy situation in Thailand

In 2007,the ratio of commercial primary energy import to the total demand was 62%and it represented about US$22billion (873billion Baht)of which 87%was spent on the import of crude oil

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journal homepage:https://www.wendangku.net/doc/7c10791287.html,/locate/enpol

Energy Policy

?Corresponding author.

E-mail address:manju_taranga@https://www.wendangku.net/doc/7c10791287.html, (M.Siriwardhana).1

Sajjakulnukit, B.,(alternative energy expert,Department of Alternative energy,development and ef?ciency,Thailand)Oral presentation at ASEAN-US Enhanced Partnership Biofuels and the Automotive Industry Seminar,October 24,2007,available at:https://www.wendangku.net/doc/7c10791287.html,/thailand/th/biothai.pdf .

Energy Policy 37(2009)554–559

and re?ned oil products.2Thai total expenditure on energy import,in 2007,amounted to 10.4%of the GDP.3

2.1.Primary energy supply

In 2006,Thai primary energy production was of 55Mtoe,with an increase of 3.2%over https://www.wendangku.net/doc/7c10791287.html,mercial energy contributed 68.8%of the total indigenous energy production,and new and renewable energy and others contributed 31.2%.

In 2006,the energy imported was up 2.5%from 2005,totaling 59Mtoe.The total value of energy imported was about US$22,000million (873,565million Baht),an increase of 15.9%.All energy imported was commercial energy (Fig.1)(see footnote 2).

2.2.Final energy consumption

Since 1999,Thai ?nal energy consumption has continuously increased and the total ?nal energy consumption in 2006was 63Mtoe,an increase of 1.4%over https://www.wendangku.net/doc/7c10791287.html,mercial energy was 82.6%of the total ?nal energy https://www.wendangku.net/doc/7c10791287.html,mercial energy consumption,which includes natural gas,coal and its derivatives and electricity,increased 1.3%,and at the same time,renewable energy,including fuel wood,charcoal,paddy husk and bagasse,which accounts for 17.4%of the total ?nal energy consumption,increased by 1.6%(see footnote 2).

Petroleum products were 60.6%of the ?nal commercial energy consumption in 2006.They totaled 32Mtoe,a decrease of 2.5%from the previous year.Petroleum products were mainly con-sumed in transportation (72.4%),followed by agriculture (10.4%),manufacture (10.4%),residential (4.1%),commercial (2.2%),construction and mining (0.5%).Diesel represents 49.9%of petroleum products consumption,followed by gasoline (17.0%),jet fuel (11.7%),fuel oil (11.4%),LPG (9.9%),and kerosene (0.1%)(see footnote 2)(Fig.2).

Transportation sector :In 2006,energy consumption in trans-portation sector was 23Mtoe and accounted for 36.3%of the ?nal energy consumption,down 2.2%over 2005.Most of the energy consumed in this sector was petroleum products,comprising diesel (51.3%),gasoline (23.0%),jet fuel (16.1%),fuel oil (6.9%)and LPG (2.3%).Moreover,a small volume of natural gas for vehicles (0.4%)was consumed (see footnote 2).

3.Status of bio-diesel in Thailand

Producing bio-diesel from palm oil started in Thailand on a small scale two decades ago,but only recently there has been interest in greater expansion.There are 800service stations which provide B5(a mixture of 5%bio-diesel and 95%diesel)for trucks and lorries with a total sale of 548million litres per year.From October 2006to October 2007,B5diesel consumption jumped from 3.43to 65.13million liters,showing a staggering increase,but not exceptional for a fuel that is just beginning to take off.4Due to government subsidies,the retail price of B5is lower than diesel price at approximately 2.1US cents per litre (0.70Baht per litre).5There are 72community-based small scale plants which are producing 100l of bio-diesel per day each.These small scale plants use palm oil,used cooking oil as well as Jatropha oil as the raw material (Pichalai,2007).

3.1.Potential of raw materials for bio-diesel production in Thailand Potential raw materials for bio-diesel production in Thailand are used vegetable oil and new extracted vegetable oils like Palm oil,Coconut oil,Soy bean oil,Ground nut oil,Castor oil,Sesame oil,Sun?ower oil and Jatropha oil (see footnote 2).Oil palm and Jatropha are the two main oilseed crops in Thailand.Harvested oil palm plantation has steadily increased from 3,44,000ha (2.15million rais)in 2004to 4,38,000ha (2.74million rais)in 2007(Preechajarn et al.,2007).

3.1.1.Palm oil

Palm oil is a usual raw material for bio-diesel production in Thailand due to its high crop yield.A hectare of oil palm,which is known to be the most productive oil crop,can produce four to ?ve tons of crude palm oil per year (Gonsalves,2006)and yields ?ve times more bio-diesel than rapeseed in 1ha in Europe and ten times more bio-diesel than soybean in 1ha in US.Oil palm trees can deliver yield for up to 20years.6However,Palm oil is highly

V a l u e o f i m p o r t e d e n e r g y p e r G D P / (%

)

246810121419

2006

Year

Fig.1.Value of imported energy as a percentage of GDP in current market price (see footnote 3).

V a l u e o f i m p o r t e d p e t r o l e u m p e r t o t a l T h a i i m p o r t s / (%

)

2468101214161819

0420

Year

Fig.2.The value of imported petroleum as a percentage of total Thai imports (see footnote 3).

Department of alternative energy,development and ef?ciency,ministry of energy,Thailand.Available at:http://www.dede.go.th/dede/index.php?id=118.

Energy Policy and Planning Of?ce,Ministry of energy,Thailand.Available at:http://www.eppo.go.th/info/index.html .

Thailand tonight news article,2007.Bio-fuel consumption soars in Thailand:bio-diesel up more than 1000%ethanol up 64%.30November.Available at:https://www.wendangku.net/doc/7c10791287.html,/2007/11/biofuel-consumption-soars-in-thailand.html .

Wantawin,S.,(Executive director,Bureau of energy policy and plan,energy policy and planning of?ce,ministry of energy,Thailand)Oral presentation at the national launching of Thailand country development partnership for infrastructure (CDP-INFRA),January 31,2007.Available at:http://www.nesdb.go.th/Portals/0/home/interest/CDPINFRA/Energy%20Sector.pdf .

The Bangchak Petroleum Public Company Limited,Thailand.Available at:http://www.bangchak.co.th/en/.

M.Siriwardhana et al./Energy Policy 37(2009)554–559

555

vulnerable for climatic conditions and crop production is seasonally changing as well.For example,the country’s produc-tion had been signi?cantly depressed during2004–2005owing to drought.On the other hand,oil palm is a plant which requires a lot of water and nutrients,thus it reduces the economic viability in the life cycle.Therefore,the R&D on the other oil plants should also be supported in coupling(Martchamadol,2007).

At present,after exclusively using it as cooking oil and for export,only5,00,000l per day are available for producing bio-diesel which is not enough for meeting the demand(Pichalai, 2007).

Recent government initiatives totaling almost US$9millions have given the sector a huge boost.For instance,a facility in the

Krabi province produces42,000tons of palm oil per year.Since government policy has pushed up crop prices,local producers are pro?ting from oil palm cultivation.There are plans to expand oil palm plantations to cover 1.6million ha by2023,as Thailand seeks to reduce oil imports.7

3.1.2.Jatropha

Jatropha oil can be a substitute for palm oil,or even the?rst choice for bio-diesel.Thailand has16,000ha(1,00,000rais)of jatropha plantations,but only3200are managed commercially.8 Jatropha is a non-edible oil source wild plant that yields about 1.2tons per ha.Even though Jatropha yields only about a quarter of the fuel per unit of land compared to oil palm,there are other advantages considering it as a feedstock.Jatropha can be grown in areas of low rainfall(200mm per year),on low fertility,degraded, fallow,waste and other lands in the arid/semi-arid areas and even on alkaline soils(Sarin et al.,2007).The cultivation of Jatropha in marginal lands will prevent the risk of replacing food cultivation lands.Jatropha is easy to establish in nurseries,grows relatively quickly and is hardy.Its life span is over20years.As a by-product, being rich in nitrogen,the seed cake is an excellent source of plant nutrients too(Gonsalves,2006)(Table1).

Jatropha bio-diesel has poor oxidation stability with good low temperature properties.On the other hand,Palm bio-diesel has good oxidative stability,but poor low temperature properties.The combinations of Jatropha and Palm give an additive effect on these two critical properties of bio-diesel.Therefore,the fuel properties can be enhanced by using mixture of palm oil and Jatropha as raw materials.This techno-economic combination of Jatropha and Palm bio-diesel could be an optimum mix for asian energy security.It may reduce the dependence on edible oil too (Sarin et al.,2007).

https://www.wendangku.net/doc/7c10791287.html,ed cooking oil

On average,1l of residual cooking oil can be processed into 0.9l of bio-diesel,and Thailand produces more than100million liters of waste cooking oil per year.9Part of the residual oil is used for soap making and as ingredient for animal feed.The rest is simply environmental problems,caused by releasing to public waterways,or illicitly sold for reuse(see footnote6).Thailand’s savings on diesel imports could reach about US$40million(1.57 billion Baht)yearly,if all the residual cooking oil were used for bio-diesel production.Thailand’s Energy Ministry has identi?ed the situation and encouraged to develop community-based bio-diesel plants,which uses residue cooking oil.10Bangchak Petroleum Plc,a public sector company,one of the Thai bio-diesel producers,uses residual cooking oil to produce20,000l per day and commercializes it at100service stations(see footnote9). 3.1.4.Animal fatty oils

Thailand produces large amounts of meat per year.These animal fats and oils can be used as a non-expensive raw material. But speci?c modi?cations in the production process are required since the ratio of free fatty acids in animal fat is high.The most commonly considered animal fats include those derived from poultry,beef and pork(Demirbas,2007a).

3.2.Production process

The most common process used for bio-diesel production in Thailand is transesteri?cation of palm oil(vegetable oil)by methanol(an alcohol).The steps from raw material acquisition to bio-diesel use are shown below and in Fig.3(see footnote6).

1.Pre-treatment:This is to extract gum,dirt and water contents

from crude palm oil.

2.Reaction step:This is the transesteri?cation process of crude

palm oil by an alcohol such as methanol or ethanol and is commonly catalyzed by an alkali such as potassium hydroxide, sodium hydroxide under high temperature.Methyl ester or ethyl ester,depending on the alcohol used,is the desired product of the transesteri?cation reaction,but glycerol is also produced and usually accounts for10%of the total output.The chemical reaction is given below.

3.Washing:The bio-diesel from transesteri?cation is washed in

water to remove glycerol and other water-soluble impurities.

4.Methanol recovery:This process recycles the methanol for

reuse.

5.Drying:This is to remove water from bio-diesel.

Table1

Potential of oil crops for bio-diesel production(Martchamadol,2007)

Oil crop Annual yield/

(tonnes/ha)

Oil extraction

rate/(%)

Annual bio-diesel

yield/(l/ha)

Oil palm17,54418.63527

Soy bean143822.9350

Peanut157520.3346

Sesame61924.2162

Castor bean68840.7302

Jatropha5000–187525.0

1355

7Asia Paci?c News,2007.Thailand promotes use of bio-diesel to reduce dependency on oil imports.19July.Available at:http://www.channelnewsasia. com/stories/southeastasia/view/289174/1/html.

8Bangkok Post,2007.Jatropha farmers seek price guarantees on oil production.

4December.Available at:https://www.wendangku.net/doc/7c10791287.html,/News/34001396.htm.

9Board of Investment(BOI)Thailand,Investment review,December2006. Available at:http://www.boi.go.th:8080/issue/200612_16_11/42.htm.

10BizAsia news,2007.Energy Ministry encourages local bio-diesel production. 17February.Available at:https://www.wendangku.net/doc/7c10791287.html,/bizbriefs_/ef3he/energy_ministry_ encourages.htm.

M.Siriwardhana et al./Energy Policy37(2009)554–559 556

4.Proposed bio-diesel roadmap

Thailand,with its abundant agricultural resources,is well positioned to effectively deploy bio-diesel in helping to meet its energy needs (Pichalai,2005).Thai government pursues a number of initiatives to promote and expand the use of bio-diesel,which are:(1)Setting up strategies and road map,(2)setting bio-diesel and bio-diesel blended fuel speci?cation,(3)giving incentives for bio-diesel,(4)tax reduction and oil fund exemption,(5)?nancial support for crop investment,(6)plan for feedstock plantation area and (7)promotion of bio-diesel production in commercial and community level (Gonsalves,2006).

4.1.Bio-diesel demand 1

As shown in Fig.4,the proposed bio-diesel development plan is to increase the bio-diesel demand from 0.03million litres per day in 2005to 8.5million litres per day in 2012.

4.2.Development of feedstock plantations for bio-diesel

At present,the limited availability of raw material is the main hindrance for accelerating the bio-diesel programme in Thailand.In order to overcome this,there is a plan to increase the oil palm cultivation to 0.8million ha (5million rais)by 2009(see footnote 1)and to 1million ha (6million rais)by 2012(Preechajarn et al.,2007)(Table 2).

Oil palm is the world’s most productive oil crop and Thailand has favorable climatic and soil conditions for large-scale palm cultivation.The government plans to develop palm and jatropha plantations totaling 0.7million ha (4million rais),which will yield 1750million liter per year of bio-diesel.In addition,palm plantations covering 0.2million ha (one million rais)in area will be developed in a neighbouring country by renting land,most likely Malaysia and this will lead to an additional bio-diesel production capacity of 440million liters per year.Finally,the government plans to cultivate more palm and jatropha to bring bio-diesel production to 910million litres per year.A total investment of US$1.75billion (70billion Baht)is required for developing the plantations (Martchamadol,2007and Gonsalves,2006).

https://www.wendangku.net/doc/7c10791287.html,ernment incentives and subsidies

In 2007,the Bank for Agriculture and Agricultural Co-operatives allocated about US$175million (7billion Baht)for soft loans to palm planters in order to expand plantations.It targeted 0.5million ha (3million rais),up from 0.3million ha (2million rais)now.The state Oil Fund also subsidizes bio-diesel by collecting about 2US cents (0.70baht)per litre from B2(a mixture of 2%bio-diesel and 98%diesel)sales,for production of B100.The fund now pays about 38US cents (15Baht)per litre for B100,allowing oil traders to buy palm oil for making bio-fuel for 55US cents (22Baht),which is well below the existing price of 93US cents (37baht)for B100.11

4.4.Increasing con?dence of customer acceptance

Car manufacturers have agreed to guarantee all existing diesel powered vehicles in Thailand for running on ?ve-percent bio-diesel fuel,and warranties on the cars will still be valid (see footnote 7).In the ?rst week of January 2008,all major automobile dealers in Thailand have agreed to provide warranties on new cars,despite the fact that all vehicles will be forced to use B2by April,2008.12

4.5.Production cost and price of bio-diesel

In global market,bio-diesel is currently not economically feasible.The price is more expensive than conventional diesel (Demirbas,2007b ).The cost of bio-diesels varies depending on the base feedstock,geographic area,variability in crop production from season to season,the price of the crude petroleum and other factors (Demirbas,2007b ).Whenever the raw material used is a food product,it is really challenging to make it cost effective (Demirbas and Balat,2006).

The production cost is mainly governed by the cost of raw materials,specially,crude palm oil and methanol.The price of bio-diesel is set by the equation (see footnote 2),B100?0:97CPO t0:15MtoH t3:32

where,B100is the selling price of bio-diesel (B100)in Bangkok in a unit of Baht per litre;CPO is the selling price of crude palm oil in

B1- B20B100

Glycerol residue

Wastewater Gum and water mix Wastewater

Crude Glycerol

Bio-diesel

+B i o -D i e s e l P l a n t

Fig.3.Simpli?ed representation of bio-diesel production process (see footnote 6).

m i l l i o n l i t e r s /d a y

0.03

0.06

0.36

0.46

0.76

1.76

3.96

8.5

Fig.4.Proposed bio-diesel demand with current development plans.

Bangkok Post,2008.B2to replace high-speed diesel soon:demand for pure

biodiesel keeps rising.10January.Available at:https://www.wendangku.net/doc/7c10791287.html,/News/34001426.htm .

The Age news,2007.Thailand to enforce bio-diesel in 2008,9June.Available

at:https://www.wendangku.net/doc/7c10791287.html,.au/news/World/Thailand-to-enforce-biodiesel-in-2008/2007/06/09/1181089396528.html .

M.Siriwardhana et al./Energy Policy 37(2009)554–559

557

Bangkok in a unit of Baht per kg;MtoH is the selling price of methanol in Bangkok in a unit of Baht per kg.

At current costs,it is estimated that the prices of bio-diesel can break even only if the crude oil price remain in the range of US$100–$120.13It is always debatable how long the govern-ment can subsidize bio-diesel in order to make it more attractive (Table3).

The share of palm oil cost is80%of the total production cost while the share of methanol cost is15%.Therefore,by reducing the cost of raw material or using low-cost raw materials will drastically reduce the cost of bio-diesel(Kapilakarn and Peugtong, 2007).

Research is needed to?nd new sources of raw materials,to increase palm yield,to increase extraction rate and to decrease methanol production cost.For example,there are large amounts of low-cost oils and fats,such as restaurant waste and animal fats including beef tallow,pork lard and yellow grease as raw materials,which can be converted to bio-diesel.The problem with processing these low-cost oils and fats is that they often contain large amounts of free fatty acids that cannot be converted to bio-diesel using an alkaline catalyst(Demirbas and Balat,2006; Gonsalves,2006).

The second major raw material is methanol which is currently imported.Thailand can look for local production of raw materials using low cost or non-cost materials like waste biomass such as old wood or bio-waste and less cost intensive technologies.

Recovery of high-quality glycerol as a bio-diesel by-product is a primary option to be considered to lower the cost of bio-diesel. Seed cake can be used as plant fertilizer.

Even though the government estimated that,by2012,the bio-diesel programme will save the national economy by US$675 million each year,it is always debatable because the prices are always changing(Gonsalves,2006).A comprehensive,full feasi-bility study is needed to be done.

5.Advantages and disadvantages of bio-diesel and strengths and weaknesses of the roadmap

5.1.Economic bene?t of bio-diesel

Thai energy imports account for50%of total primary energy supply and crude oil accounts for70%of the total energy imports. Petroleum products imports accounted for9.0%of Thailand’s GDP(see footnote3).More than60%of Thailand’s vehicles use diesel as the fuel.14The number of new vehicles registered in Thailand increases rapidly since1998(ADB CAI-Asia,2006)and hence the diesel consumption increased at an even faster pace,from15,285million liters in1998to18,710million liters in2007(see footnote3).Further, it is expected to rise to31,000million liters in2012.

As commensurate development in the transportation sector is accompanied by the economic development.Thai government’s bio-diesel development plan,which contributes to a part of petro-diesel,will reduce the oil dependency.

5.2.Environmental impact

Specially in road side areas,the particulate matter(PM10) exceeds the Thai National Ambient Air Quality Standard(Min-gquan,et al.)and the diesel fueled vehicles are the main sources. It is estimated that diesel vehicles which are about15%of the whole vehicle?eet in Bangkok contribute83%of vehicular emission.Passenger cars are the major source of CO,HC and NO x and trucks are responsible for high emissions of PM,NO x,HC and CO.The aging bus?eets in urban areas,including Bangkok, are the major source of PM(ADB CAI-Asia,2006).The introduction of B20(a mixture of20%bio-diesel and80%diesel)would reduce CO2by12.6%,HC by11%,PM by18%and cancerigenous substances

Table2

Thailand’s bio-diesel plan and development strategy(Preechajarn et al.,2007)

Community,bio-diesel standardization Bio-diesel B5on sales in some areas of Southern provinces and Bangkok.

To be expanded nationwide by2011

B10nationwide

20052006200720082009201020112012

Palm crop(Million rais/year)0.260.600.67 1.07 1.40

Palm crop in country4million rais and1million rais in neighbouring countries.Develop palm yield from2.7to3.3tonne/rai/year.

Develop physic nut yield from0.4to1.2tonne/rai/year

Production(Million l/day)0.030.060.360.460.76 1.76 3.968.50

Sales(Million l/day)0.6 1.27915357985

Community bio-diesel Commercial bio-diesel

Research&development Extended researches to add value for by-product from bio-diesel production

Source:Department of alternative energy development and ef?ciency,ministry of energy.

Table3

Domestic prices of high-speed diesel and calculated retail prices of bio-diesel as of

May21st,2007(Preechajarn et al.,2007)

Price/(Baht per litre)

High-speed diesel Bio-diesel

Ex-factory re?nery factory price18.647819.1654

Excise tax 2.3050 2.1898

Municipal tax0.23050.2190

Petrol fund 1.50000.3000

Conservation fund0.07000.0665

Wholesale price(WS)22.753321.9407

VAT 1.5927 1.5358

WS&VAT24.346023.4765

Marketing margin0.9289 1.0873

7%VAT of marketing fee0.06500.0761

Retail price25.3424.64

Approximately35Baht per US$.

13The Nation Business,2008.Alternative energy:biofuel agency to be formed. 28January.Available at:https://www.wendangku.net/doc/7c10791287.html,/2008/01/28/ business/business_30063577.php.

14News article Thailand to enforce bio-diesel in2008on June9,2007.Available at:https://www.wendangku.net/doc/7c10791287.html,.au/news/World/Thailand-to-enforce-biodiesel-in-2008/ 2007/06/09/1181089396528.html.

M.Siriwardhana et al./Energy Policy37(2009)554–559 558

by20%.15These?gures are given only for Bangkok city.As a whole, the impact on environment is even higher in Thailand,as the diesel vehicle contributes60%of total vehicle?eet.

5.3.Feedstock cultivation:global warming and forests degradation

The search for renewable energy sources and the environ-mental threat caused by carbon dioxide emissions is highly commendable and worthy of public support.However,there are environmental risks associated with the expansion of energy crops which need to be addressed in earnest.The Thai Ministry of Agriculture and Cooperatives announces that new plantations will be on disused rice?elds,deserted public lands,?ood-prone lands, acid and degraded lands in the South and the Eastern Seaboard. However,in most cases,forests have fallen victim to encroachers to pave the way for palm plantations.Therefore,the government plan of almost doubling oil palm plantations over the next5years, may indirectly encourage forest encroachment.The cleared forests are more fertile for crop cultivation than degraded lands and investment-wise,the cost would be lower,too.The government must make sure that its policy of boosting energy crops,oil palm in particular,must not jeopardize the state of forests.16 Environmentalists are also alarmed at the dramatic expansion of farmland to produce crops for bio-fuels,which they say may actually contribute to global warming because of the destruction of forests where trees store carbon dioxide.17

5.4.Feedstock type:impacts on food and commodities

In Thailand,new palm crop replacement programmes are already changing agricultural patterns.National public news papers day to day complain that they have already noticed measurable impacts.Some food farms including fruits,coffee and rice?elds have been replaced with palm.18,19Shortages of agricultural commodities and unexpected price rise in recent past show that the impact of crop replacement was not completely thought out and adequately planned for.

The other major challenge occurs with the shortage of palm oil for cooking purposes.Palm oil is a popular cooking ingredient in Thailand.In fact,global palm oil prices have also soared because of its popularity as an ingredient in processed foods as a substitute for trans fats,which health experts believe encourage obesity and other ailments(see footnote17).Consumption of palm oil in the food sector is growing.Currently,olein palm oil accounts for about 60–70%of total cooking oil consumption in Thailand.The palm plantation plans should also address the increasing demand for oil in the food industry,to ensure there will be no shortages of cooking oil,which would otherwise have a serious impact on consumers(see footnote16,17).Besides Thailand is a net palm oil exporter,recently Thailand had to import30,000tons of crude olein for cooking purposes20(see footnote18).This may cause serious con?ict between prices of fuel and food.It may drive up prices of food commodity while it could reduce costly energy imports see footnote17).

6.Conclusions

In Thailand,as a net oil importer,bio-diesel helps to diversify the fuel supply in transport sector and to increase national energy security,which is highly dependent on Middle Eastern fossil fuels, at present.

The second major factor is that as Thailand is rich in natural resources as well as waste resources which can be converted into fuel,the potential of bio-diesel success in the country is high.At present,bio-diesel contributes to only about2%of total diesel consumption in the country.Thai government is very keen of developing bio-diesel in the https://www.wendangku.net/doc/7c10791287.html,ernment incentives such as soft loans for palm plantation,plans to expand palm plantation and tax exceptions are given for bio-diesel projects.

Since the proposed bio-diesel development plan relies heavily on palm oil which is a highly demanded food ingredient,Thai food market face unexpected shortages of supply,and hence the burden of increasing prices of primary foods.Such local effects should be focused in the assessment of long-term prospects and hindrances.

The main viable solutions would be to encourage plans for cultivating non-edible oil plants such as jatropha.Jatropha is less vulnerable to climatic conditions.Therefore,it can be grown in arid and semi-arid areas too.Waste cooking oils and animal oil based feedstock can be widely used.However,because of their varying qualities,new process technologies should be developed. Research and development need for?nding technologies with higher extraction rates of oil.

Along with all these factors,it is arguable whether the palm based bio-diesel plan is economically as well as environmentally feasible as a long-term perspective.

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