Thailand capable of industrial-grade ethanol production to cut import: FTI
Thailand is poised to boost its local ethanol industry and reduce import dependency, according to Isares Rattanadilok na Phuket, vice president of the Federation of Thai Industries (FTI).
The FTI recognizes Thailand's potential to become a significant ethanol producer via sugar cane and tapioca fermentation. This move would capitalize on the declining demand for edible sugar due to health-conscious trends and support sugar manufacturers.
The adoption of the Bio-Circular-Green (BCG) economic model outlined at the 2022 APEC Summit aligns with this initiative, promoting sustainable growth and helping Thailand progress towards carbon neutrality.
Seksan Phrommanich, vice chairman of the FTI Renewable Energy Industry Club, highlighted the cost advantages of domestic ethanol production, which could be nearly 30% cheaper than imports.
Current regulations, however, limit ethanol production to the Liquor Distillery Organisation under the Excise Department, leading to a domestic shortfall and the need for imports.
During the Covid-19 pandemic, some Thai ethanol producers adapted their facilities to create pure ethanol for sanitation purposes. Despite their readiness for large-scale production, regulations impede them. If restrictions were lifted, the value addition for Thailand’s tapioca and sugar cane could exceed 174 billion baht.
The call for deregulation is echoed by Ketmanee Lertkitcha, CEO of KOP International and FTI executive board member. She asserts that easing production regulations is critical, given Thailand's annual ethanol requirement of 76.37 million litres for various industries.
The FTI anticipates a growing demand for ethanol, urging a shift away from reliance on imported ethanol to improve cost control and competitive edge for Thai businesses.
The adoption of the Bio-Circular-Green (BCG) economic model outlined at the 2022 APEC Summit aligns with this initiative, promoting sustainable growth and helping Thailand progress towards carbon neutrality.
Seksan Phrommanich, vice chairman of the FTI Renewable Energy Industry Club, highlighted the cost advantages of domestic ethanol production, which could be nearly 30% cheaper than imports.
Current regulations, however, limit ethanol production to the Liquor Distillery Organisation under the Excise Department, leading to a domestic shortfall and the need for imports.
During the Covid-19 pandemic, some Thai ethanol producers adapted their facilities to create pure ethanol for sanitation purposes. Despite their readiness for large-scale production, regulations impede them. If restrictions were lifted, the value addition for Thailand’s tapioca and sugar cane could exceed 174 billion baht.
The call for deregulation is echoed by Ketmanee Lertkitcha, CEO of KOP International and FTI executive board member. She asserts that easing production regulations is critical, given Thailand's annual ethanol requirement of 76.37 million litres for various industries.
The FTI anticipates a growing demand for ethanol, urging a shift away from reliance on imported ethanol to improve cost control and competitive edge for Thai businesses.
