Thailand to Use Biodiesel on Power Plants and Heavy Vehicles

THAILAND is going to implement policy to use biodiesel in power plants and heavy vehicles in order to reduce 190.000 metric ton palm oil surplus. N

ational News Bureau reported that the national palm oil policy committee is going to help reduce the 190,000-metric-ton palm oil surplus by diverting 160,000 tons towards biodiesel production that will then be used for electricity production at the Ratchaburi and Bangpakong Power Plants.

Additionally, the committee is calling for uptake of B20 in large vehicles and Bangchak Corporation Public Company Limited, a Thailand energy company, will begin to distribute the fuel.

The Director-General of the Department of Internal Trade estimates that if large vehicles shifted to B20, they would absorb 150,000 tons of palm oil per month. Currently, the supply of palm oil currently exceeds domestic demand by 190,000 tons.

To prevent the price falling, the National Palm Oil Policy Committee has come up with three solutions. First, up to 160,000 tons of palm oil will be used in the production of electricity at Ratchaburi and Bangpakong Power Plants.

Second, large vehicles will be encouraged to use B20 biodiesel to raise the demand for palm oil. Bangchak Corporation Public Company Limited will be one of the distributors of B20.

Lastly, the quality of palm oil will be upgraded according to the standard requirements set forth by the Ministry of Industry. Wichai believes that the price of palm oil will increase within three months if these solutions are implemented successfully. *** (Thai Visa News)