FLEETDRIVE
In a statement made to Channel News Asia, Malaysian Biodiesel Association( MBA) President Tee Lip Teng said that palm oil biofuel suppliers can produce an additional 400,000 tonnes to accommodate the B15 increase.
“ We have a total production capacity of 2.4 million tonnes per annum. Last year, we produced around 1.3 million tonnes of biodiesel, of which 1 million tonnes were used for the national biodiesel blending programme,” he said.“ So, we have adequate production capacity to cater for... the additional demand of 400,000 tonnes of biodiesel.”
Expert on international relations and economics Samirul Ariff Othman advised that Malaysia’ s implementation of increasing biofuel mandates must be done in phases. The drawback of hastening the pace of the National Biofuel Policy is the potential for higher demand for palm oil, raising prices for edible oil and investments for supporting infrastructure.
| Thailand
While Malaysia has the National Biofuel Policy, Thailand has the National Ethanol Program and the Gasohol Strategic Plan. In the late 70s, the country recognised the need to rely less on imported fuels by producing its own.
While Malaysia uses palm oil-based biofuel, Thailand uses molasses and cassava as the bases of its‘ gasohol.’ Implemented in 2004, the Gasohol Strategic Plan was split into two phases:
Phase I( 2004-2006) and Phase II( 2007-2012).
Phase I included plans to increase ethanol production to 1.155 million litres / day, a government mandate that all vehicles use gasohol, the phase out of methyl tert-butyl ether( MBTE), emissions tests, and government specifications for Gasohol 95.
Phase II aimed to have increased ethanol production to 3.0 million litres / day, 18 licensed ethanol plants( 14 of which use molasses and the remaining for cassava). The government aimed to mandate all petrol to be Gasohol 95 by 2012.
Despite these plans, Thailand still relies on fuel imports, with 90 per cent of its total oil supply coming from abroad. Half of these imports pass through the Strait of Hormuz, which is currently closed.
In the last decade, there has been significant effort by the Thai government to cut down greenhouse gas( GHG) emissions. Government incentives currently support both the use of ethanol and EVs. However, in the wake of the oil crisis, the Thai government has changed its fuel promotion strategy.
Earlier this year in April, the hike in oil prices from the fallout of the US-Iran war triggered a slew of panic-buying among Thai citizens. Existing subsidies were no longer sufficient to compensate for rising oil prices, prompting cases of hoarding, smuggling, and panic-buying in the country.
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