Thailand copes with biodiesel demand as oil prices climb: police ask residents to donate cooking oil

In Thailand, police units are expanding a program to encourage donations of used cooking oil to provide fuel for the police fleet. The project, which commenced in May with three stations, provides biodiesel fuel at 25 percent of the cost of petroleum diesel. The campaign is being expanded to 80 of the 1500 Thai police stations. Police spokesperson said that converting fully to biodiesel would save $6 million per year for the police and also eliminate the 1.2 million gallons of cooking oil disposed of in Bangkok sewers each year.

Last month, the Thai government reduced the price of B5 biodiesel to stimulate demand. The price of B5 biodiesel has been reduced as part of a government-backed plan to encourage more motorists to use the alternative fuel. B5, a mixture of 5% biofuel and 95% high-speed diesel, will now cost 3.18 per gallon, 3 cents less than petroleum diesel. The price reduction was accomplished by reducing taxes on blended biodiesel.

Recently, Thailand 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.

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