Bioenergy to Thailand
(Last updated: 26 Mar 2013)
Trends and opportunities
The market
In 2011, Thailand imported over 60 per cent of its primary commercial energy needs, including oil, LNG and hydro energy. The country’s final energy consumption in 2012 was 73,316ktoe while the year’s primary energy supply was 130,848ktoe. Thai Government policy has been the main driver for renewable energy development in Thailand, in particular solar energy, wind energy, micro hydro, biomass, biogas and waste to energy.
Biomass
Biomass refers to organic and renewable material made primarily from agricultural by-products of rice, sugarcane, rubber and palm oil production. Each year, Thailand produces 61 million tons of agricultural waste that can be transformed into biomass. Currently, less than one-third of this amount is used as feed-stock for biomass-to-energy projects. The existing biomass power plants in Thailand produce 2,800MW of alternative energy, and Thailand aims to produce 3,220MW from biomass by 2016 and 3,700MW by 2022.
Major biomass companies in Thailand include Mitr Phol Power, Siam Cement Group, Shaiyo-AA and Double A.
Biogas
Thailand produces approximately 14.5 million tons of Municipal Solid Waste (MSW) annually, composed of food waste, paper and plastic. This waste can be used to create biogas through the breakdown of organic material, which produces methane.
In addition to MSW, Thailand has the potential to produce biogas from industrial wastewater and livestock manure, with a capacity to produce 7,800 terajoules and 13,000 terajoules respectively of energy per year.
There are opportunities to increase biogas projects from MSW, wastewater and livestock effluent sources. In 2011, electricity generated from biogas surpassed the Thai Government’s short-term target of 60MW, and the aim is to reach 90MW by 2016 and 120MW by 2022.
Major biogas companies in Thailand include Univanich Palm Oil, Eiamburapa Company Ltd. and Thai Biogas Energy Company.
Biodiesel and Ethanol
Thai government policies and regulations have encouraged the private sector in Thailand to produce biodiesel and ethanol. An example of this is mass transportation in Bangkok, which uses hybrid motors fuelled by either biodiesel or ethanol. Since the introduction of the Alternative Energy Development Plan (AEDP) in 2012, the demand for biodiesel has increased significantly from 1.1 million litres per day in 2008 to more than 2 million litres per day. The Ministry of Energy’s target is to achieve demand of 4.5 million litres per day by 2022.
Raw materials such as sugarcane, molasses, tapioca, paddy straw and corn are integral to ethanol production and are widely available in Thailand. Thailand is the world’s largest exporter of cassava and third largest exporter of sugar. (Source: Thailand Board of Investment)
Major biodiesel and ethanol companies in Thailand include Thai Agro Energy Public Co., Ltd, Double A Ethanol, T.P.K Ethanol Co., Ltd and Mitr Phol Ethanol.
Opportunities
Areas where there are opportunities in Thailand’s biomass and biogas sector include:
- Biomass boilers for large scale biomass power plants.
- Mechanical devices for biomass power plants including belt conveyors, spiral wound gaskets, sleeve and bearing sets.
- New technologies that will increase production in biomass in particular from bagasse and wood waste in Thailand.
- Biogas technologies that are not available in Thailand.
Competitive environment
Biomass
There are currently three types of technologies available in Thailand for biomass production including combustion, liquefaction and anaerobic digestion. International companies with expertise in biomass and a presence in Thailand include: Fulton, Thermax and Foster Wheeler.
Biogas
Biogas technologies that are currently available in Thailand include closed anaerobic tank systems, up flow anaerobic sludge blankets, anaerobic fixed film and lagoon covers.
There are two main universities that conduct research in biogas including the Energy Research Development Institute (ERDI) at Chiangmai University and King Mongkot University of Technology. ERDI has developed biogas technology for industries and farming and consultancy services for Clean Development Mechanism (CDM) projects.
AsiaBiogas is one of the largest energy developers in South East Asia with activities in Thailand. They are experienced in build, own, operate and transfer projects in the palm oil and cassava industries. AsiaBiogas is owned by Trading Emission, United Kingdom.
Tariffs, regulations and customs
On 27 December 2011, the Thai Government approved the 10 year Alternative Energy Development Plan (AEDP), covering the period from 2012 to 2021. The AEDP replaced the previous 15 year Renewable Energy Development Plan (REDP), which covered the period from 2008 to 2022.
Under the AEDP, the target for renewable and alternative energy as a percentage of total energy consumption was increased from 20 per cent by 2022, to 25 per cent by 2021. The share of renewable and alternative energy in 2012 was 9.4 per cent.
The Board of Investment (BOI) of Thailand supports investment in alternative energy by offering a range of fiscal and non-tax incentives. Tax-based incentives include exemptions from corporate income tax and reductions in import duties on machinery and raw materials. Non-tax based incentives include permission to bring in foreign skills, own land and remit foreign currency abroad. In addition, foreign businesses are entitled to own up to 100 per cent of alternative energy companies, unlike businesses in some other sectors where majority Thai ownership is mandatory.
Marketing your products and services
Market entry
Thai project owners are always interested in innovative technologies that have at least one operational reference site, which could be either in Australia or in other countries.
Technologies that are of interest to Thai companies in the biomass and biogas sector need to be able to bring environmental and energy efficiency to the industry as well as open channels for new business, in particular using bagasse and wood waste as biomass.
Major bio-energy related events in Thailand:
Clean Power Asia 2013, 29-30 April 2013, Bangkok Convention Center
Sugar Asia 2013, 28-29 May 2013, Queen Sirikit National Convention Center, Bangkok
Renewable Energy Asia 2013 co-located with Thai Water 2013, 5-8 June 2013, BITEC, Bangna, Bangkok
Clean Energy Expo Asia 2013, 25-27 Sep 2013, Bangkok Convention Center
Renewable Energy World Asia Conference and Expo 2013, 2-4 Oct 2013, IMPACT Exhibition & Convention Centre, Bangkok
Links and industry contacts
Government, business and trade resources for Thailand
Department of Alternative Energy Efficiency and Development, Ministry of Energy (DEDE) - www.dede.go.th/dede/
Energy Policy and Planning Office (EPPO) - www.eppo.go.th/
Board of Investment (BOI) Thailand - www.boi.go.th/index.php?page=opp_alternative_energy
Thailand Greenhouse Gas Management Organisation (TGO) - www.tgo.or.th/english/
The Renewable Energy Industry Club Federation of Thai Industries - http://ftiweb.off.fti.or.th/industrialgroup/energy/index.asp
Bioenergy Industry Market Report - www.thebioenergysite.com/reports/
Thai Ethanol Manufacturers Association / Thai Tapioca Starch Association - www.thaitapiocastarch.org/article24.asp
Contact details
The Australian Trade Commission – Austrade – is the Australian Government’s trade, investment and education promotion agency.
Through a global network of offices, Austrade assists Australian companies to grow their international business, attracts productive foreign direct investment into Australia and promotes Australia’s education sector internationally.
For more information on how Austrade can assist you, contact us on:
Australia ph: 13 28 78 | Email: info@austrade.gov.au
A list of Austrade offices (in alphabetical order of country) is also available.