Palm oil shortage affects Thailand’s alternative energy program

Thailand’s Energy Minister Wannarat Channukul has admitted that an ongoing shortage of palm oil in Bangkok has resulted in a slowdown of the National Alternative Energy Development Plan which was implemented during 2008-2022. The production of 100% palm oil biodiesel (B100) has been severely affected while the distribution of B5 (5% biodiesel blend) has been halted. B3 is also likely to be replaced by B2 on March 1 after current stock runs out, though the ministry is confident that B3 production can resume if additional supplies of palm oil make it to the market by April. Wannarat said that the Energy Policy and Planning Office has agreed on a temporary policy to allow the sale of two percent biodiesel, or B2, instead of B3 until March after the Energy Business Department reported that retailers have a surplus of B3 stock which must be liquidated first. (February 16, 2011)