Energy security and foreign currency

Production of bioenergy is expected to improve domestic energy security. On the other hand, there are opportunities for developing countries to get foreign currency by exporting bioenergy. Here describes the commitment to bioenergy production by the Thai government briefly.

At the time of December 2006, the unit price of ethanol was 23.50 baht per liter, which is determined by the Ministry of Energy, Thailand. In Thailand, 6 plants are licensed to produce ethanol fuel from cassava. The production capacity of the 6 plants will be 702 million L/year, demanding 4.13 million ton/year of cassava. Thailand is the largest exporter of cassava in Asia. The average annual production is 20 million ton/year: About 8 million ton for domestic starch consumption; Another 8 million ton (cassava chips) for export; The remaining 4 million ton can be used for ethanol. Therefore, the cassava production for food and that for ethanol are balanced now. Cultivated area of cassava is about 1 million ha. The expansion of agricultural land is prohibited, but farmers can grow a different crop if allowed by the government. In the future, the amount of cassava production for ethanol may increase, while it is often said that bioenergy utilization may be in conflict with food production, eg, the international growing demand for ethanol may threaten the stability of domestic supply of food. Even the cassava production for food and that for ethanol are balanced in Thailand now, the future use of cassava root should be carefully determined. Moreover, the market price of cassava heavily declined before, so financial support by the government to farmers will be

necessary in some instances.

Further information

The Japan Institute of Energy. “Report on the Investigation and Technological Exchange Projects Concerning Sustainable Agriculture and Related Environmental Issues,” Entrusted by the Ministry of Agriculture, Forestry and Fisheries of Japan (Fiscal year of 2006) (2007)