MFC Energy Fund takes 25 percent stake in Thai biodiesel producer E-Ester

In Thailand, the MFC Energy Fund has invested $670,000 to acquire a 25% holding in the E-Ester, operator of a 4.8 Mgy palm oil biodiesel facility in Chiang Rai. The company plans to increase production to 14 Mgy as local palm oil supplies increase.

Earlier this week, Energy Minister Piyasvasti Amranand said that Thai biofuels sales would increase in 2008 to $469 million from $157 million in 2007. He said that the cost of oil imports have fallen 10% as a result of biofuel usage and a stronger currency, adding that gasoline would be replaced by E10 and E20 blends by 2012.

Thai biofuel demand has increased more than 100 percent for 2007; the spur in biofuels sales comes not only from the introdcution on E20, but the implementation of a B2 mandate. Demand is so brisk that major oil traders may be required to establish mandatory strategic reserves of ethanol and biodiesel in addition to conventional fossil fuels.

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