Thailand says Japan to hike ethanol imports under free trade deal

Japan has agreed to increase imports of ethanol from Thailand under the countries’ bilateral free trade agreement. “Japan will increase imports of ethanol from Thailand thanks to closer cooperation under the Japan-Thailand Economic Partnership Agreement (JTEPA) and zero duties,” Thailand’s Deputy Commerce Minister Alongkorn Ponlaboot said after meeting with Japanese energy officials and potential investors in Tokyo. Brazil provides almost 60% of its imports and Thailand, Pakistan and China. In contrast, Thailand produces far more ethanol than it consumes and output is set to more than double over the next two years. It currently produces around 1.6 million liters per day (lpd) from 13 plants and consumes about one million lpd. But 10 new plants are slated to come on stream over the next two years, ramping up production to more than 4 million lpd by 2011, by which time domestic demand is estimated to be at three million lpd. (March 20, 2009)