Thailand’s biodiesel consumption rises 1900 percent in 2007; ethanol up 63 percent

In Thailand, consumption of biofuels is soaring. It was announced that B5 consumption grew 1900 percent over the previous year to 17 million gallons for the month, while E10 consumption grew 63 percent to 47 million gallons. Last month, the Thai government reduced the price of B5 biodiesel to stimulate demand.

Overall diesel fuel consumption  grew 2.2 percent during the corresponding period while the gasoline market fell 11.4 percent. E10 now represents 41 percent of all gasoline consumed in Thailand, compared to 22 percent a year ago.

Earlier this month, Thailand announced plans to mandate E20 blended gasoline in January 2008. Thailand’s fuel imports fell 3.7 percent this year to $18.5 billion as the previous E10 mandate took hold. The Thai energy ministry also said the new mandate would absorb excess ethanol production capacity.

The increased demand has created shortages, and Thai police units are expanding a program to encourage donations of used cooking oil to provide fuel for the police fleet. The project, which commenced in May with three stations, provides biodiesel fuel at 25 percent of the cost of petroleum diesel.

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