Thailand to push for reforms to ease oversupply of ethanol

Thailands Industry Ministry has vowed to push for tax and legal reforms to help ease an ethanol oversupply and to support technology development for the industry, the Bangkok Post reports. While the private sector is developing ethanol rapidly in terms of quality and supply, government policies are not yet persuasive enough to promote ethanol demand, Industry Minister Suwit Khunkitti acknowledged in mid-July. Suwit made the comments at the launch of the world’s first commercial-scale ethanol plant produced from bagasse or cellulose. The pilot project involves the collaboration between the New Energy and Industrial Technology Development Organization (NEDO) of Japan and the Thai Rung Ruang group. The Thai Rung Ruang pilot plant uses molasses and bagasse to produce 120,000 liters of ethanol daily. The company plans to invest another one billion baht (US$29.89 million) to produce 400,000 liters of ethanol daily if market demand improves. (June 20/July 15, 2008)