Thailand’s sugar industry has urged the government to adopt Gasohol E20 as the country’s primary fuel, aiming to strengthen energy security and cut crude oil imports by more than 1 billion litres annually. The proposal, announced on Tuesday, March 17, 2026, would nearly double ethanol demand while increasing income for over 420,000 farming families. Industry leaders say the move would also support Thailand’s net zero goals through expanded use of biomass energy. Get today's headlines by email The Three Sugar Millers Associations (TSMC) are calling for agricultural renewable energy to be prioritised as a national agenda. Thailand currently depends on imported energy for 60–70% of its needs, leaving it vulnerable to global market fluctuations. The country has more than 11 million rai of sugarcane plantations, producing around 92 million tonnes each year. Central to the proposal is a sharp increase in ethanol use, with daily demand projected to rise from 3.5 million litres to 6.4 million litres if E20 becomes the standard fuel. This shift would reduce crude oil imports by 2.9 million litres per day, equivalent to about 1.058 billion litres per year. The sugar industry, contributing roughly 123 billion baht or 8% of Thailand’s agricultural GDP, is expected to see significant economic benefits. Dr Somchai Harnhirun, chairman of the TSMC coordination committee, said Thailand remains vulnerable due to its reliance on imported crude oil and natural gas. He highlighted the country’s “immense agricultural potential” to produce renewable energy efficiently and position the sugar and cane sector as a key economic driver. He also referenced international examples, including Brazil’s use of E27 and India’s push towards E20. The industry is also promoting expanded biomass electricity generation using sugarcane leaves and agricultural waste, targeting 650 megawatts to replace natural gas. A buy-back scheme for sugarcane leaves already generates 1.2 billion baht annually for farmers and helps reduce open-field burning, a major source of PM2.5 pollution. This initiative is seen as delivering both economic and environmental benefits. The TSMC acknowledged recent government measures, including the Energy Policy and Planning Office’s decision to increase biodiesel (B100) blending to 7% from March 14, 2026. However, it stressed the need for clearer legal frameworks and long-term policies to support continued investment in renewable energy. Industry leaders say consistent policy direction will be critical to achieving the proposed transition. The Nation reported that the sugar industry is seeking firm government commitments to drive adoption of E20 and expand biomass energy. Dr Somchai said renewable energy from agriculture is “no longer just an option” but essential for Thailand’s long-term sustainability and economic resilience. Pictures courtesy of The Nation Join the discussion? Already a member? Adapted by ASEAN Now Nation 18 Mar 2026
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