Board cuts the price of ethanol

BANGKOK: -- The National Energy Policy Board yesterday approved an ethanol pricing formula based on Brazil's level. Taking immediate effect, the formula effectively lowers the price to Bt19.33 per litre, compared with the Bt25.30 price quoted in the latest ethanol purchase agreement. The price will be adjusted quarterly.

The board also approved a pricing formula for biodiesel of Bt24.54 per litre.

"The formula is a result of the preliminary agreement between oil retailers and ethanol plant operators. It's meant to be a reference price. However, if the actual price does not move in line with the formula, ethanol and biodiesel prices will remain subject to control," Energy Minister Piyasvasti Amranand said.

The Energy Policy and Planning Office will now discuss lower gasohol prices with oil retailers.

Piyasvasti is hopeful that the retail price of gasohol 95 can be cut 27.8-30 satang per litre.

The price of gasohol 91 price could be slashed 53 satang per litre if its retail price is to be kept at Bt1 a litre lower than the price of octane-91 petrol. If the Bt1.50 gap is chosen, the retail price would be cut by only 3 satang a litre.

Meanwhile, the new biodiesel pricing formula will be based on the Internal Trade Department's crude palm oil price, which is updated monthly, plus methanol price. Under the formula, biodiesel prices would stand at Bt24.54 per litre, or Bt2.94 per litre higher.

The Oil Fund will be used to subsidise the biodiesel price, to ensure that the marketing fee of biodiesel is 20 satang higher than that of high-speed diesel. The marketing fee for biodiesel will then stand at Bt1.20 per litre.

Energy Reporters

-- The Nation 2007-02-06

Nakhon Sawan suggests that ethanol production can be an alternative to fuel shortage

Nakhon Sawan (นครสวรรค์) provincial industrial office has organized a special lecture concerning ethanol production as a solution for fuel shortage in the future.

Nakhon Sawan Governor Chanit Buaprasert (ชนิทร์ บัวประเสริฐ) presided over the lecture where Asst. Prof. Dr. Kranarong Srirod (กล้าณรงค์ ศรีรอด), the deputy director of research and development of the Agricultural Department, Kasetsart University, was invited to talk about the benefits of ethanol.

Nakhon Sawan ia known for its vast sugarcane plantation field. It has about 400,000 rai of plantation field, saying that sugar cane is one of the provincial economic plants. With the adequate sugar cane supply, ethanol factory has a possibility to be established in the province. However, the province will seek ways to develop the project.

Source: Thai National News Bureau Public Relations Department - 06 February 2007

The wonders of modern journalism, translating a Thai press release into Farsi, then into Magyar, and finally into Singalish. The lead paragraph speaks of nearly 6 BAHT per litre decrease in retail price, and another paragraph says it might be a decrease of 27.8 satang per liter. How much is 8/10ths of a satang - enough to buy one grain of rice?

400,000 rai of sugarcane land in one province is lotsa rai, but will it make lotsa ethanol to be sold for lotsa baht? Maybe some people want to make sugar out of sugarcane. Besides, where are all the factories/refineries to make gasohol - perhaps 400 km south of Fremantle, Australia?