Molasses is a by-product of sugar processing from sugarcane. This black thick syrup remains after sugar has been extracted from sugar juice. In Thailand, sugar industry is closely regulated by OCSB (Office of the Cane and Sugar Board) via the Cane and Sugar Act of 1984. The OCSB has an important role in ensuring fair distribution of the revenue between the sugar mills and sugarcane growers.

As shown above, about 10,000 km2 (1 million ha) of sugarcane plantation area (green) is clustered in four regions (spanning 49 provinces) showing all 45 sugar mills (red). The molasses production strongly depends on sugarcane production. In general, 1 Mg (1 t) of sugarcane would yield molasses by about 45-50 kg, and 1 Mg (1 t) of molasses can be processed to produce 260 dm3 (L) of ethanol. For 60 Tg (Mt) of sugarcane production in 2007, 3 Tg (Mt) of molasses is produced. Of this 3 Tg (Mt), 1 Tg (Mt) is used among liquor, yeast, cooking sauce, MSG (mono sodium glutamate), vinegar and animal feed industries while 2 Tg (Mt) can be used to produce ethanol totaling about 520 dam3/year (million L/year) or 1.4 dam3/d (million L/day).

Initially, Ministry of Energy required licensing for a fuel ethanol plant but later on it was not required. At the moment, there are 7 total fuel ethanol plants (6 from molasses/sugar and 1 from cassava) operating at the capacity about 1 dam3/d (million L/day). About 12 more plants are currently being constructed with half using cassava as a feedstock. The total additional
capacity is 1.97 dam3/d (million L/day). This drive for ethanol capacity building is a result of the governmental initiative on using 10% ethanol-blended gasoline or so-called “gasohol E10” for both 91 & 95 octane rating. Recently, gasohol E20 (octane rating of 95) or 20% ethanol-blended gasoline will be commercially available at selected gas station from January 1, 2008 onwards.

For molasses export market, Thailand has recently become the largest molasses exporter (value at $41.6 M in 2004), where the second and third largest are USA and Guatemala. About 37% of the export goes to ASEAN countries, and other 53% goes to other countries in Asia. Other molasses exporting countries nearby are Philippines, Indonesia and Australia.