Thailand pushes use of E85

Gasohol E85 sold in Thailand will meet international standards, according to Metta Buntherngsuk, director-general of the Department of Energy Business. He said the international standard for local production of E85 had been drafted to prepare for the commercial launch of new flex-fuel vehicles (FFV) in the next few months. “The car companies really need this standard, otherwise they can’t ensure car buyers that this E85 can be filled in fuel tanks without harmful effects on engines,” he said. Energy Minister Poonpirom Liptapanlop and Finance Minister Surapong Suebwonglee are hoping to introduce E85, a blend of 85% ethanol and 15% premium petrol, by October. Metta said the Energy, Finance and Commerce ministries are discussing a proposal to reduce the excise tax of 2.57 baht (US$0.08) a liter to 0.55 baht (US$0.02) per liter to reduce the retail price of E85. The majority state-owned oil companies, PTT Plc and Bangchak Petroleum, will spearhead the launch of E85 with 15-20 dispensers in their stations in Bangkok. They have agreed to set the retail price of E85 about 15 baht (US$0.45) lower than gasoline. Sirivuthi Siamphakdee, chairman of the Thai Ethanol Manufacturers Association, said 11 ethanol producers currently produce 900,000 liters of ethanol a day or only 58% of the operating capacity of 1.55 million liters. Seven new producers which will add an additional 1.2 million liters a day will enter the market this year, creating an even bigger surplus. Chaiwat Churitti, PTT’s senior executive vice-president for the oil business, said the company had prepared a testing facility for flexible-fuel vehicles that will use the E85 being developed by its research and development center. (June 22/23/26/28, 2008)