Thai ethanol producers eyeing overseas export market

Domestic sales of ethanol in Thailand fell way below expectations, raising doubt about the government’s plan to make the country Asia’s fuel hub. As a result of these uncertainties and in the light of low domestic demand which reached only 1.2-1.3 million liters a day, the country’s ethanol producers are looking for export markets overseas. Domestic plants are running at half capacity — the country can produce 3.26 million liters a day from its 20 plants. Earlier, the government announced its intent to make the country a regional hub: “We aim to be a regional hub and we have the potential, since we have plenty of raw materials, not only molasses, but also tapioca, to supply the ethanol industry,” said Nathie Thabmanie, deputy director of the Energy Policy and Planning Office. Jutamas Arunanondchai, an executive at Rajburi Ethanol Co Ltd., said that local producers are now targeting traditional ethanol importers including South Korea and Japan, which use ethanol in the liquor, chemical and biofuel industries. Local producers are also banking on an increase in demand from the Philippines where the government is promoting gasohol. Data from the Thai Ethanol Manufacturing Association show that Thai exports of ethanol tripled from 45 million liters in 2010 to 132 million liters in 2011. (April 3, 2012)