Thai ethanol producer eyes Lao market
Thai ethanol producer eyes Lao market
A Thai ethanol producer is looking to expand into the Lao market ahead of the Asean Economic Community (AEC) integration next year.
Siam Chemical Co., Ltd in cooperation with Shichareun Constructions Co., Ltd held a ceremony on Tuesday in Vientiane to introduce the alternative energy known as MASIMA E85 and other products.
The companies hope to sell their goods on the Lao market as the economy is one of the strongest in the region.
According to Siam Chemical Co., Ltd, the products would be imported from Thailand once the Lao government permit the plan to establish a factory in the country. The amount of raw materials available in the country would also be considered when establishing the factory.
The price of E85 at petrol stations in Thailand currently stands at around 24 baht per litre (about 6,000 kip). In comparison with regular petrol, it is cheaper and can be used with almost any car manufacturers' vehicles produced after 2006.
The price of fuel in Laos is currently 11,570 kip for premium grade petrol and 10,220 kip for regular petrol.
Ethanol fuel is produced from crop residue from plants such as sugarcane, cassava and maize. The fuel is environmentally friendly and uses low capital.
Through the production of bio-ethanol, farmers are also able to gain extra income from selling their crop residue after the sale of their goods.
Advisor to the Minister of Natural Resource and Environment in Thailand Mr Maitree Attrapreyangkul told local media at the ceremony that Thailand was the fourth country worldwide to produce ethanol, with the US, Brazil and the European Union already making headway in developing the energy.
Laos was one of the Asean member countries which had potential to produce bio-ethanol in order to supply it to the public and reduce imports from other countries, he said.
Siam Chemical Co., Ltd produces many ethanol products such as E10, E20 and E85.
E85 fuel is being sold at around 250 petrol stations in Thailand, with the company hoping to break into the Lao market.
The name ‘E85' is derived from the amount of ethanol in the fuel. Therefore, E85 sees 85 percent of ethanol and 15 percent of conventional gasoline.
The government is aiming to increase its share of renewable energies to 30 percent of the total energy consumption by 2025, with the outline of their vision being to reach 10 percent of the total transport energy consumption from bio-fuel and reduce the importation of fossil fuels.
In order to fulfil their goals in the renewable energy sector, the government is encouraging domestic and foreign investment from public and private sectors.
The government hopes to facilitate and provide appropriate incentives, as well as increasing guarantee for investments in the renewable energy sector.
Some Lao and foreign companies are currently producing biogas from palm, Jatrop ha and Vernicia Montana. These companies are waiting for government permission to begin selling the products to petrol stations.
vientiane times
