If successful, it could replace about 7 per cent of Thailand's fuel imports, saving the equivalent of Bt87 billion a year.

Energy Minister Piyasvasti Amranand yesterday said the ministry would select one local administrative body with which to jointly initiate the project. At present, there are 10 local administrative bodies keen to take part.

To enhance the project, he said the ministry planned to use money from the Energy Reservation Fund to finance its investment and from the Oil Fund to subsidise a recycling producer in the same way as gasohol and biodiesel producers are subsidised.

"It's possible the subsidy for plastic recycling might be Bt5 or Bt6 per litre," Piyasvasti said.

However, the ministry is considering how such a project could be pushed into becoming a continuing industry.

"To consider these realities, a committee has been set up to study the recycling of plastic waste to fuel oil," said the energy minister, adding that its members included representatives from the Energy Ministry, PTT, Bangchak Petroleum and local administrative bodies.

Piyasvasti said the ministry was also encouraging the waste-recycling process in power-generating plants by offering an added rate of Bt2.50 a unit for electricity generated from waste.

Santivipha Panichkul, a member of the committee studying the waste-recycling project, said Thailand currently created 16.7 million tonnes of fresh waste each year. About 2.5 million tonnes of this is plastic waste. She estimated about 10 million tonnes of "old" plastic waste had already been buried and would take more than 500 years to degrade.

Santivipha said a systematic waste-recycling process could help the Kingdom save as much as 7 per cent of its oil import costs, or about Bt87 billion a year. The pilot recycling project is expected to cost Bt65 million and will produce fuel oil for about Bt11.50 a litre, or a wholesale price of Bt15.50 a litre. At these rates, the project will break even within five years.

Samut Prakan Governor Anuwat Methwibunwut said his province was currently participating in a waste-to-fuel oil-recycling project with the Energy Ministry, to mitigate the waste problems brought about by residential areas located near industrial areas.

The province generates 1,800 tonnes of fresh waste a day, 40 per cent of it plastic. He said two private companies were proposing to invest a combined total of Bt500 million in electricity generation from recycled waste.

Watcharapong Thongrung

The Nation