Biofuel Programs in Thailand : A Solution for Energy Sufficiency

and Poverty Eradication? “

Dr.Samai Jai-In, Specialist, National Metal and Materials

Technology Center,NSTDA,Thailandwww.mtec.or.th

Bangladesh2000 : 130 M2025 : 204 M2050 : 279 M

China2000: 1268 M2025: 1453 M2050 : 1424 M

IndiaIndia2000 : 1080M2000 : 1080M2025 : 1361 M2025 : 1361 M2050 : 1601 M2050 : 1601 M

Indonesia2000: 224 M2025: 300 M2050 : 336 M

Philippines2000: 79 M2025: 118 M2050 : 147 M

Thailand-Vietnam-Myanmar-Cambodia-Laos2000 :62+79+45+12.5+5.5 = 204M2025 : 71+100+53+19+9 = 252M2050 :69+108+54+25+13 = 269M

Total Population > 4,000M in 2050!

Threats and Opportunities in GMS

• Population Stress !• Envir Stress ! Global Warming and Climate Change • Econ. Stress! Impact of Energy Import VS

Agricultural Commodity Export• Social Stress ! Energy Security--------• Sustainable Agriculture Development for

Food/Feed/Fuel/Fibre and CDM• Regional Co-operation and Poverty Eradication

ABC / Fires : Indochina 24.03.05 (NASA Terra Sat. Picture)

www.earthobservatory.nasa.gov4th March, 2007 by Aqua satellite

Source : NASA’s Aqua Sattellite, 20/02/2006

Environmental Sustainability ?

PM and Smoke Emissions

GDP and Sectorial Performance (data from The Bank of Thailand)

398 438 447 499 436 444 469 514 616 669 722

4,186.2

4,611.0 4,732.6 4,626.4 4,637.14,922.7

5,133.5

5,450.6

5,917.4

6,489.8

7,087.7

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

8,000.0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 p

Bill

ion

Bah

t

AgricultureNon-AgricultureGross Domestic Product (GDP)

Energy Import (source : EPPO)

284,373 286,953346,057

486,627

644,933

753,783

28,522 25,817

30,735

41,533

55,680

60,253

30,559 35,073

42,635

46,053

62,827

77,843

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2001 2002 2003 2004 2005 2006

M.B

aht

ELECTRICITYCOALNATURAL GASPETROLEUM PRODUCTSCRUDE OIL

Oil shock=16%

Oil shock=8%

Agriculture Export VS Fuel&Lub. Import (Data from The Bank of Thailand)

4,771

6,3145,794

3,4064,766

7,559 7,445 7,435

8,937

13,150

20,828

25,043

8,070

10,225

7,848

0

5,000

10,000

15,000

20,000

25,000

30,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Agriculture ExportFuel and Lubricant Import

M.USD Petroleum Import =14.9% of Import=12% of GDPTotal Energy Expenditure = 19.4% of GDP

2000Hydrocarbon Econ

2010

2020

Linkages

Linkages

2030 CarbohydrateEconomy

H2 - rich Biogas

Fuel cells, H2 storage

H2 from SynGas

H2H2

hydrocarbonshydrocarbons

Biofuel

Development

Biofuel

Development

Bio Oil - Pyrolysis

Ethanol from starch/sugar

CH4 – rich Biogas

Biodiesel

Ethanol from cellulose

SynGas

Biomass Integrated Gasification Combined Cycle ( BIGCC)

Polygeneration of energy, chemicals and H2

From proof of concept to implementation

Technology readily

available

Need specification and market for co-products

Limited experiences and further R&D needed

Direct combustion

Diesohol

(Adapted from N Dumrongchai

Target 2012Target 2012•• E10 : 10% of Ethanol in Gasoline E10 : 10% of Ethanol in Gasoline •• B10 : 10% of B10 : 10% of BiodieselBiodiesel in Diesel in Diesel •• NGV : 20% of Transport Fuels NGV : 20% of Transport Fuels

Royal Royal ChitraladaChitraladaProjectsProjects

•• 1985 : Ethanol from Molasses 1985 : Ethanol from Molasses UnitUnit

•• 1995 : Expansion 1995 : Expansion •• 2001 : Dehydration Units2001 : Dehydration Units•• 2001 : Diesel2001 : Diesel--Palm (Refined)Palm (Refined)•• Several RD&D, Product Dev., Several RD&D, Product Dev.,

Information Campaigns.Information Campaigns.•• Fleet Trials since 1986Fleet Trials since 1986•• 19.09.2000 : National Ethanol 19.09.2000 : National Ethanol

PolicyPolicy•• 2007 : Gasohol 95 / Gasohol 91 2007 : Gasohol 95 / Gasohol 91

in > 4000 Stationsin > 4000 Stations

Ethanol Program in Thailand• Revival of National Ethanol Program since 1999-2000.

Government Policy in Sept. 2000• Inspiration from development initiatives by HM King

Bhumipol since 1970s and pilot plant since1985• Valuable experiences in technical/economic areas

from Trindade’s study and later from ISAF XIII in 2000 in Stockholm, hosted ISAFXIV in Phuket Thailand in 2002.

• International Member of Governor Ethanol Coalitions • 1st Country in Asia to announce National Policy for

both Bioethanol(19.09.2000) and Biodiesel(10.07.2001)

Gasoline Price Baht/Lt. in Thailand

15

17

19

21

23

25

27

29

Jan-05

Feb-05

Mar-05

Apr-05

May-05

Jun-05

Jul-05

Aug-05

Sep-05

Oct-05

Nov-05

Dec-05

Jan-06

Feb-06

Mar-06

Apr-06

May-06

Jun-06

Jul-06

Aug-06

Sep-06

Oct-06

Nov-06

Dec-06

Gasohol95 B/Lt.Gasoline95 B/Lt.

ULG and Gasohol Price Structure at 18/2/07

14.9838 15.6216 14.5362 15.2188

3.6850 3.31653.6850 3.3165

3.46001.5000 3.2600 1.5000

0.00

5.00

10.00

15.00

20.00

25.00

30.00

ULG 95 GASOHOL95 ULG 91 GASOHOL91

VATMARKETING MARGINCONSV. FUNDOIL FUND (1)M. TAX B./LITRETAX B./LITREEX-REFIN. (AVG)

Total incentives to refiners = 2.49 B/LOf Gasohol95, = 24.9 B/L blending credit

Gasoline95 and Gasohol95(e10) Sales in Thailand

0

1

2

3

4

5

6

7

8

9

10

Jan-05

Feb-05

Mar-05

Apr-05

May-05

Jun-05

Jul-05

Aug-05

Sep-05

Oct-05

Nov-05

Dec-05

Jan-06

Feb-06

Mar-06

Apr-06

May-06

Jun-06

Jul-06

Aug-06

Sep-06

Oct-06

Nov-06

Dec-06

Mill

ion

Litr

es/D

ay

Gasoline95Gasohol95

Source : N.Nattasomboon, Ethanol and Biofuels Asia 2006

Projected Demand for Domestic Use

Production Capacity

Ethanol Production CapacitySugar cane and Molasses• 4 Existing Plants : 475 KL/d• 18 Projects : 2.42 ML/d to

come on line by 2008

Cassava• 2 Existing Plants : 280 KL/d• 29 Projects : 8.3 ML/d to come

on line by 2008

Total Existing Production Capacity : 755 KL/d

Projected Production Capacity in 2008 : 11.6 ML/d

World number 3rd after Brazil and USA ?

ThaiThai--yuanyuan Ethanol, cassava plant Ethanol, cassava plant 130,000L/d, 130,000L/d, KonkaenKonkaen ThailandThailand

Thai Agro Energy Co. Ltd.150,000 L/d Molasses Ethanol, Supanburi, Thailand

BiodieselBiodiesel ProgramProgram–– Royal Initiatives in 1985Royal Initiatives in 1985–– Royal Guidance in November 2000Royal Guidance in November 2000–– DemonstrationDemonstration of Diesel Palm of Diesel Palm

((RefinedRefined)) by Royal Fleetsby Royal Fleets–– Eureka Eureka 20012001 :: HM The KingHM The King’’s s

InitiativesInitiatives–– Cabinet Cabinet ResRes.. 10.07.200110.07.2001 :: Promotion Promotion

of of BiodieselBiodiesel ((EsterEster),), Vegetable Oil blendsVegetable Oil blends

–– CabinetCabinet ResRes.. 17.05.200417.05.2004 ::•• palm oil plantationpalm oil plantation•• biodieselbiodiesel admixtureadmixture•• dual fuel dual fuel && niche market schemeniche market scheme

–– Cabinet Cabinet ResRes.. 18.01.200518.01.2005•• BB1010 Mandate by Mandate by 20122012•• Require Require 8585 BiodieselBiodiesel Plants for Plants for

8.58.5MLPD MLPD OutputOutput

–– ตนแบบไบตนแบบไบโอดีเซลชุมชนโอดีเซลชุมชน

HRH Princess Sirindhorn : Openning Biodieselplant,Chitralada Palace 7.05.2004

Diesel and Biodiesel B5 Price Structure at 18/2/07

16.0274 16.4550

2.3050 2.1898

1.5000 0.5500

1.68021.8655

1.52691.4942

0.00

5.00

10.00

15.00

20.00

25.00

H-DIESEL(0.035%S) Biodiesel (B5)

Bah

t/Lt.

VATMARKETING MARGINCONSV. FUNDOIL FUND (1)M. TAXTAXEX-REFIN.

Total incentives to refiners = 1.13 B/L of B5Retail Price Diff = 0.5 B/L, Blending credit =22.26 B/L.

3 Plants with production capacity 600,000 L/d400 stations selling B5 by PTT/BCP

HSD (left scale) and Biodiesel B5 (right scale) Sales in Thailand

-

50

100

150

200

250

300

350

400

450

500

Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-070

10

20

30

40

50

60

B5 KL/dHSD ML/d

Community Biodiesel Plant 3,000 L/dChiangmai, Dept. of Alternative Energy Development

BCP Unit, 50,000 L/d

79 communtiy biodiesel units

>1 million Ha.

Community-Based Biodiesel ProductionTo disseminate the Royal Initiatives on

Sufficiency economy Practice and Bioenergy Project

Project Site (Rangsit Canal #13,Saraburee)

Deserted Orange Plantations

Make-shift Farmer’s house

27th Month

Project Activities

Plantation : KU

Engine Performance / Environment ,

Materials compatability,Tribology & Wear& Corrosion

Pilot Plant : MTEC/ TISTR200 L/ Batch

Oil extraction : MTEC

BDF for diesel engine

: MTEC

SVO for Agriculture machine

MTEC/ SKI / DOAECake :solid pellet to gasifier

LCA :NSTDAValue added for by-product (Gly

: MTEC/RCP

ตนปาลมแมพันธุ Golden Clone Tenera, จ

Palm production (Fresh Fruit Bunch)

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

Million tons/yearMillion tons/year

yearyear

2006 CPO ProductionMalaysia : 15.4 M.TonsIndoneisa : 15 M.TonsThailand : 1.2 M.TonsNigeria : 0.8 M.TonsWorld Total : 35.5 M.Tons

Area for Palm ?In Rai (2.5rai=1Acre)

Moderate Moderate 84,129,90184,129,901

Unsuitable Unsuitable 30,432,62030,432,620

BestBest 11,870,60011,870,600

Marginal Marginal 139,831,715139,831,715

Conservation AreaConservation Area

พื้นที่ทั้งประเทศwww.Thaiodiesel.com

Climate and Soil for Palm Oil

5 Yrs Old Palm in Krabi (Golden Tenera)

2 Yrs Old, Pathumthani, NE of Bangkok, (Surat 1)

Current Research Programs• Integrated Bioenergy Community Concept(for acidic soil north of Bangkok)• Upgrading and Standardization of BDF (joint project

with AIST/TISTR)• High Concentration BDF in Industrial and Agricultural

Machines (joint project with AIST/TISTR/Siam Kubota/PTT/MOAC)

• Industrial BDF Process optimization (with Royal Thai Navy and TISTR/Bangchak Petroleum PLC)

• Small-size post-harvest equipment development

Future Research Needs• Plant Oil Genetics / Yield Improvement • Soil Improvement• Drought-resistant Strains• 2nd and 3rd Generation BDF (Solid Catalyst,

Catalytic Cracking and BTL)• Engine Performance / Material / Emissions• Co-product Development• Climate Change and CDM• Policy and Socio-economic Impact

Conclusion

• Thailand is committed to Green & Clean Energy• By 2012, Thailand should rise to world’s 3rd

Ethanol Producer, World 3rd BDF Producer (after Malaysia, Indonesia)

• NSTDA will serve as National Excellence Center for Biomass Energy

• Co-operation with ASEAN, GMS– Capacity Building– AFTA & Joint Investment / carbon trading