Energy Ministry to review target for ethanol use

He said the national “oil-industry master plan” had not yet been finalised because the ministry had to review its plans for promotion of alternative fuels. 

The ministry previously set a goal to boost the use of ethanol in the country to 9 million litres a year by 2021, from about 3.5 million litres at present. But because of the sharp drop in world oil prices, petrol is now cheaper than ethanol, which could make it difficult to achieve the target.

“We are reviewing what should be an appropriate target. If we promote E85 gasohol – which is 85 per cent ethanol – too much, the state will have to subsidise that product,” he said. 

Nevertheless, Areepong said the ministry still wanted to encourage more usage of E20 gasohol. It will also scrutinise the appropriate cost structure of ethanol and coordinate with the Ministry of Agriculture and Agricultural Cooperatives on the latter’s plan to increase the yield per rai of sugar-cane and cassava farmers, in a bid to help lower the costs of locally made ethanol.

Thammayot Srichuai, director-general of the Department of Alternative Energy Development and Efficiency, said it was reviewing the ethanol target and its measures to promote production. The department has recognised that excessive promotion of ethanol for use as a motor fuel might result in local oil refineries having a surplus of petrol and needing to export much of it. The department also has to consider whether the outputs of sugar cane and will be as planned by the Agriculture Ministry.

“We should have all the figures by the end of April,” he said.

Witoon kulchroenwirat, director-general of the Department of Energy Business, said the 20-year oil-industry master plan would have to take into account the alternative-fuel promotion plan, which would affect the usage of each petroleum product. 

Under the current circumstances, it will be hard to achieve the 9-million-litre ethanol-usage target by 2021 unless the government seriously promotes E85. But while oil prices remain low, it will be difficult to persuade more motorists to use E85. There is also a limited number of service stations that offer E85 and of car models that can run on it.

The oil plan will set a framework on the fuel-price structure, and pinpoint which fuels the ministry will promote; ensure that fuel specifications comply with Asean standards; and promote investment in infrastructure such as oil pipelines and strategic oil reserves.