Alternative energy urged on manufacturers

Industrial manufacturers have been urged to maximise production efficiency and depend more on alternative energy sources for their production lines, despite the recent declines in global oil prices.

Chainoi Puankosoom, president of PTT Aromatics and Refining, said yesterday at a seminar titled "Manufacturers' adjustment amid an energy crisis" that alternative energy had become the worldwide emphasis. Several countries have implemented biofuel laws and there is the anticipation that biodiesel this year will account for 1.5 per cent of the diesel consumed in Asia.

In 2011, Thailand targets the production of 4 million litres of biodiesel a day and 2.4 million litres of ethanol.

"Overall, there is higher demand for alternative energy, particularly liquefied petroleum gas and natural gas. However, this may not be convenient to all operators and they should save energy by maximising their production efficiency," he said.

Likit Nimtrakul, managing director of Papop, which claims to be the top producer of biogas from wastewater in Thailand, said manufacturers could shift to cheaper fuels and introduce new production technology which could be driven by alternative energy.

According to Chainoi, oil prices will remain high this year and next. The average should stay at around US$115 (Bt3,900) to $120 per barrel in the period.

"Fuelling the prices is higher demand from developing countries, particularly China and India. Meanwhile, the growth of supply is limited due to the high cost of drilling, while tensions in the oil-producing countries remain. These would be factors keeping oil prices at a high level," he said.

He added that Thai oil refiners, including PTT Aromatics and Refining, are closely monitoring to see whether high prices lead to a fall in consumption. There is also an expectation that China's oil consumption will drop now that the Olympic Games are over.