Advanced Auto Parts and Service Co, an affiliate of the car importer Yontrakit Group, expects its launch of US-made ethanol conversion kits to increase Thailand's ethanol consumption.
The company is launching ethanol conversion kits imported from the US under the brand of Fuel Flex International and priced from 7,000 to 28,000 baht.
The conversion kits allows petrol- and diesel-fuelled vehicles to switch to E10, E20 and E85 blends of gasohol, made with petrol and ethanol.
"The technology has been used for more than 25 years in Brazil, the US, Mexico, Sweden, Norway and other countries, while Thailand has tested the product for more than a year," said Arayah Chankan, who oversees Yontrakit's special projects.
About 100,000 cars in the US have already installed the conversion kits.
In Thailand, the kits can be installed on 80% of vehicles that are no older than 10 years. Vehicles made before 1985 need to undergo checking or have certain items replaced before an installation.
The company expects to sell 1,500 to 2,000 conversion kits next year. But sales could be higher if more service stations sell ethanol fuel, he said.
Currently, 200 petrol stations in Bangkok sell E20 fuel, an 80/20 mix of petrol and ethanol, while five sell E85, which is 85% ethanol and only 15% petrol.
Next year, 15 stations are expected to supply E85, said Mr Arayah.
Sirivuthi Siamphakdee, chairman of the Thai Ethanol Manufacturer Association, said five more ethanol plants would come onstream next year to raise the total to 23 and bring production capacity up to 5.6 million litres per day.
"As a result, the overall supply of ethanol will be three to four times higher than the consumption, which currently amounts to 1.2 million litres per day," said Mr Sirivuthi.
Ethanol prices rose to 23.50 baht a litre in the last quarter, up from 17-18 baht in the first half of this year.The increase is mainly due to the rise in raw material prices. Sugar surged to reach 23-24 cents per pound yesterday, which has raised the price of molasses.
Cassava is traded at 2.22 baht per kilogramme, above the guaranteed price at 1.7 baht.
The association projects that ethanol prices should stay at 23 baht in the first quarter of next year, and at no more than 24 to 25 baht in the second quarter.
The Energy Ministry targets ethanol consumption of about 3 million litres per day in 2011 and 9 million litres per day in 2022. Currently sales of E20 are at 280,000 litres per day.
"If you want the demand [for ethanol] to increase, the way out is to think what the US and Brazil have done to promote the conversion kits, which is the technology that allows old cars to use E85 and E20," said Mr Sirivuthi.
source: bangkokpost
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