Thai ethanol-gasoline blend may rise on supply

Thailand’s blending of ethanol with gasoline is likely to gather pace this year as new production plants go onstream and take advantage of a favorable local tax structure for biofuels, a senior industry executive said. Steve Williams, president of Thailand-based trading company Applied Trading Systems Inc. (ATS) said that the “current (daily) ethanol production capacity is around 1.7 million liters but by June it is likely to rise to 2.3 million liters.” ATS said Thailand’s current daily ethanol production is already higher compared with the 2008 average of 880,000 liters. Around one-third of Gasohol-91 grade gasoline produced, is currently blended with E-10, or 10% ethanol, up from almost negligible levels in 2005. The share of ethanol-blended Gasohol-91 in total sales of this grade may rise to between 50% and 60% in 2009 as supply from new plants starts to come in. Thailand also has 20% ethanol-blended gasoline, or E-20 and a small volume of an 85% blend called E-85. (March 25, 2009)