Thailand increases biofuel reserves, citing 27% ethanol usage increase and production glut

Thailand has increased its biofuel reserve mandate to cope with the new B2 mandate which takes effect in April 2008, and a 27% increase in E10 usage by Thai motorists. E10 now accounts for 25% of total Thai gasoline consumption. Biodiesel blend consumption has risen 8% in the past month. The Thai energy ministry also said the new reserve mandate would absorb excess ethanol production capacity. Annual consumption of ethanol has increased to 48 million gallons, but it still lags behind the annual production of 86 million gallons.

Thailand has also recently increased palm oil cultivation aimed at increasing biodiesel production. Thai ethanol blend consumption rates are among the highest in the world.

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