Asean eyes role as biofuel export hub

       Asean nations should collaborate to develop the region as an export hub for biofuels and alternative fuels to take advantage of its strong agricultural base,says Energy Minister Wannarat Channukul.
       Mr Wannarat pitched the idea at the Bangkok Biofuel 2009 seminar, where Asean representatives discussed sustainable development plans for biofuel with support from the International Energy Agency.
       "The region has plenty of raw materials for [producing] biofuels such as palm oil, molasses and cassava," said Mr Wannarat.
       "I would say these crops can be managed without an effect on food supply.These farm crops also have proven to have higher yields and to be more commercially viable for biofuel production than corn and beetroot researched in Europe and the United States."
       Malaysia and Indonesia are the world's largest and second-largest exporters of palm oil. Thailand is the world's largest cassava exporter and second-largest sugar exporter.
       Palm oil is used for making biodiesel,while cassava and molasses, a sugar byproduct, are raw materials to produce ethanol, which is mixed with petrol to make gasohol.
       All three countries have invested heavily to develop these products to substitute limited fossil fuel resources,by creating higher-yield crops, developing the supply chain and improving product quality.
       Thailand's energy authorities are encouraging other countries in the region,such as Laos, Cambodia, the Philippines and Burma to follow the same route.
       "By 2015 this region will have a close relationship in terms of developing alternative fuels along with collaboration under the Asean Community 2015 pact,"said Mr Wannarat.
       The Asean Community 2015 pact is an agreement to co-develop in fields such as technology and in related regulations, trade and investment, he said.
       The global downturn has weakened the development of biofuels yet each country should keep its focus on the fuel, he said.
       IEA deputy executive-director Richard Jones said biofuels would be increasingly important for the future as oil prices will rise again.
       "One day, the economy will recover and oil prices will rise again," he said.
       Biofuel has a 1.5% share of fuel consumption for global transport, and this will rise to 4% in 2030, he said. But the share of green fuels could hit 8% with "green" energy policies and rising consumer concern about climate change.
       IEA estimates global consumption of biofuels at 1.52 million barrels per day, compared with 85 million barrels of crude. It expects 2.16 million barrels of biofuel to be consumed in 2014.
       The US and Brazil will likely remain the largest producers, accounting for 80% of the growth, Mr Jones said.
       Praphon Wongtharua, director of the Energy Ministry's biofuel development bureau, said supportive government policy is crucial if Asean is to become a green fuel exporting hub."Facilitating biofuel trading, the supply chain and product regulation are key to developing alternative fuels," he said.
       Brazil, the world's largest sugar exporter, has approached Thailand to codevelop a plan to manage the product's supply and demand, he said.