Cars able to run on E85 to hit roads this year

Last week, Industry Minister Suwit Khunkitti said Thailand would start the import of flexible-fuel vehicles in order to test demand in the domestic market this year. Such vehicles are designed to run on petrol or a blend involving up to 85-per-cent ethanol.

"This is an excellent step from the government," said a source in the auto industry. "Now dedication to the project needs to be shown. Although E20 is being promoted, it does not have nationwide coverage. The government should also provide investment or tax privileges for anyone willing to import or produce models that are E85-capable in the country."

E20 with an ethanol content of 20 per cent is now available at fewer than 50 service stations of PTT and Bangchak Petroleum. The consumption level remains tiny compared to gasohol E10. Another auto industry source said another important step the government needs to make is to ensure that regular fuel is still available in the market so that older cars that cannot run on ethanol can still be used.

In the past the government has focused on ethanol and compressed natural gas (CNG). Thailand is the only country to have an energy policy that supports the use of both CNG and ethanol. Other countries have chosen to stick to one type of fuel, he said.

Suwit unveiled the plan on the same day that Industry Minister Poonpirom Liptapanlop announced that after discussion with agencies, E85 fuel should be available next year.

Suwit made the announcement after the government agreed to put sugar-cane production on the national agenda. Productivity is set to increase and this will raise the country's capacity to turn cane into ethanol.

Thailand now consumes less than 1 million litres of ethanol per day, leaving about 600,000 in excess supply.