Government Policy Support for Ethanol: Thailand’s Ethanol Industry Ready to Support E20
Government Policy Support for Ethanol: Thailand’s Ethanol Industry Ready to Support E20
Thailand’s ethanol industry has expressed its readiness to support the government’s policy to promote E20 as the country’s standard gasoline grade. According to the Thai Ethanol Manufacturing Association and the Thai Tapioca Ethanol Association, Thailand currently has 28 ethanol plants with a combined production capacity of over 7 million liters per day, sufficient to support the expected increase in ethanol demand.
At present, domestic ethanol consumption is approximately 3.5 million liters per day. If E20 is promoted as the base gasoline, demand is expected to increase to more than 6 million liters per day, which remains within the industry’s existing production capacity.
The promotion of E20 is expected to enhance Thailand’s energy security by reducing dependence on imported fossil fuels, mitigating the impact of global energy supply chain disruptions and oil price volatility. It will also support the utilization of domestically produced renewable ethanol, create value for agricultural feedstocks such as sugarcane, molasses, and cassava, and generate benefits for farmers and related industries.
In addition, greater use of ethanol-blended fuel can contribute to Thailand’s clean energy transition and greenhouse gas reduction goals. The policy reflects the government’s direction to strengthen domestic renewable energy, improve energy resilience, and support a more sustainable low-carbon economy.
Key Highlights
- 28 ethanol plants in Thailand are ready to support E20.
- Total production capacity exceeds 7 million liters per day.
- Ethanol demand could increase from 3.5 to over 6 million liters per day.
- E20 supports energy security, agricultural value creation, and GHG reduction.
- The policy aligns with Thailand’s clean energy and low-carbon development goals.