http://www.bangkokpost.com/Business/06Jun2008_biz34.php
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Sugar industry applauding E85
VICHAYA PITSUWAN
Sugar millers have welcomed the government's policies to introduce E85 gasohol this year as an important step in the development of the country's fledgling ethanol industry. E85, a blend of 85% ethanol and 15% petrol, is expected to be introduced in the third quarter, and follows the launch of E20 at the beginning of the year.
Chalush Chinthammit, an assistant vice-president at Khon Kaen Sugar Industry, said higher demand for ethanol would help support the sugarcane industry.
"There is oversupply now in the ethanol market. ... If we can create local demand for sugarcane and add value to the industry, prices will rise and the government will not have to bear the cost of price supports," he said.
Vibul Panitvong, executive chairman of the Thai Sugar Millers Corp, agreed.
''I only hope that the government is serious in pushing for E85. If we have E85 cars in Thailand, car owners will save money on fuel while cane farmers benefit from higher prices. It's a win-win situation,'' he said.
Local ethanol production, based on cassava and molasses, is currently estimated at 800,000 litres per day compared with production capacity of 1.58 million from 11 producers.
Production capacity is projected to reach 4.4 million litres per day by the end of the year once all 44 licensed producers begin operations.
But while ethanol producers are ready to go with E85, auto manufacturers say it may not be until late 2009 or 2010 that E85-compatible cars are produced locally.
Adisak Rohitasune, a senior vice-president for Asian Honda Motor, said it would take at least one year to develop E85 technology that was suitable for the Thai market and climate.
''It's just not economical for the company to import completely built-up cars, so we will have to wait until adaptations to the technology are complete,'' he said.
Mr Adisak said, however, that car owners should be aware that gasohol is less efficient than an equivalent volume of petrol. One litre of ethanol may be sufficient to run seven kilometres, he said, compared with 10 km for a litre of petrol.
But with E85 prices expected to be up to 12 baht per litre cheaper than petrol, motorists should still see some financial savings from the new fuel.
Industry Minister Suwit Khunkitti, meanwhile, held talks with 14 automakers yesterday in Pattaya about the E85 programme.
He said manufacturers wanted to see more incentives for the programme, as well as a firm roadmap about the government's policy plans.
Mr Suwit said the Industry Ministry hoped to improve cane yields by 1.5 times within the next three years.
''If ethanol demand meets our expectations, Thailand could save up to 100 billion baht in crude oil imports over the next three years,'' he said.