Bangkok: Ethanol producers in Thailand are stepping up output to meet rising demand for gasohol E20, as the government moves to cut the country’s dependence on imported oil, Bangkok Post reported.
Gasohol E20, which blends gasoline with 20% ethanol, is being promoted as a key fuel option amid rising global oil prices and concerns over shipping disruptions through the Strait of Hormuz during the ongoing Israel-US conflict with Iran.
Industry representatives say the wider use of E20 could help stabilise fuel prices. Kittisak Wattanavekin, honorary president of the Thai Ethanol Manufacturing Association, said the fuel can help balance retail prices during periods of volatility in crude oil markets.
The government is encouraging motorists to shift to E20 by keeping its price lower than gasohol 91 and 95, both of which contain only 10% ethanol. Caretaker energy minister Auttapol Rerkpiboon said authorities are aiming to widen the price gap to about 5 baht per litre to make E20 more attractive.
Although E20 is already cheaper than the other two fuel types, officials believe a bigger price difference will speed up its adoption.
Current ethanol consumption in Thailand stands at around 3.5 million litres per day, compared to more than 30 million litres per day of gasoline use. Industry estimates suggest that if E20 becomes the main fuel, ethanol demand could exceed 6 million litres per day, helping reduce oil imports.
Ethanol in Thailand is mainly produced from molasses derived from sugarcane and from cassava. The country has more than 11 million rai of sugarcane plantations, producing about 90 million tonnes of cane and 10 million tonnes of sugar each year, highlighting its potential to expand biofuel production.
Sureeyot Khowsurat, chairwoman of the Tapioca Ethanol Association, said manufacturers are ready to support the government’s E20 policy. Thailand currently has 28 ethanol plants with a combined production capacity of 7.2 million litres per day, with 50–60% of that capacity still unused.
The push for E20 is also expected to increase demand for cassava used in ethanol production to around 6 million tonnes annually. At present, about 90% of cassava output is used for starch and chips, while only 10%-roughly 2 to 3 million tonnes-is used for ethanol.
