Ethanol in Asian countries, Mosaic of developments and doubts<\/p>\n
Reuters, Bangkok\/Taipei<\/p>\n
Asian countries may see ethanol as a potential money-spinner
\nor environmental savior, but doubts still hang over the economics
\nof producing the trendy fuel in a region where old-fashioned
\npetrol rules supreme.<\/p>\n
Agricultural powerhouses, like Thailand or Australia, blessed
\nwith crops that could be used in ethanol production, are making
\ntentative steps towards building up capacity to capture a slice
\nof the growing world market for ethanol.<\/p>\n
Brazil, the world's largest ethanol producer, is expanding
\noutput to meet anticipated higher global demand. It sees China
\nand Japan as part of a potentially big Asian ethanol market,
\nespecially if ethanol\/gasoline blending policies are implemented.<\/p>\n
But Asian industrial countries, such as Taiwan and South
\nKorea, appear hesitant about embracing the leading biofuel amid
\nunresolved questions over costs of the blend.<\/p>\n
Taiwan's energy commission, facing growing environmental
\nconcern over additive MTBE (methyl tertiary butyl ether), told
\nReuters in Taipei it would conduct a feasibility study early next
\nyear into ethanol as a blend in gasoline.<\/p>\n
However, South Korean industry sources told Reuters in Seoul
\nthere were no plans to use ethanol as a fuel because of its
\nrelatively high cost compared to regular gasoline.<\/p>\n
\"Ethanol is too expensive to be used as a fuel,\" an industry
\nsource said, adding ethanol cost four to five times more than
\ngasoline as a raw material.<\/p>\n
Thailand, a producer of ethanol raw materials like sugarcane,
\ntapioca, corn and rice, is well-placed to supply regional
\nmarkets, notably China with which it is establishing business
\nlinks to feed the energy-hungry giant.<\/p>\n
The authorities have tried to boost ethanol production by
\nencouraging private firms to set up plants to supply the domestic
\nmarket and to fill growing demand in other countries.<\/p>\n
Thai media reported earlier this week that one of China's big
\nchemical and pulp manufacturers, Shandong Jinyimen Chemical
\nGroup, had proposed spending 500 million baht (US$11.4 million)
\nto build an ethanol plant in Thailand for export to China.<\/p>\n
In another initiative in Thailand, major sugar mills group
\nWang Kanai plans to invest 800 million baht to build a molasses-
\nbased ethanol plant, Boonyarit Na Wangkanai, Managing Director at
\nWang N.T. Paper Co Ltd., told Reuters.<\/p>\n
Thailand's Wang Kanai would soon apply to the National Ethanol
\nDevelopment Committee for a license to produce the ethanol,
\nBoonyarit said.<\/p>\n
Construction would start soon after approval is granted, with
\nthe plant scheduled to be completed within 18 months, he said.<\/p>\n
The plant, to be located next to one of its sugar mills, would
\nhave production capacity of 150,000 liters a day, turning out an
\nalternative fuel for automobiles, Boonyarit said.<\/p>\n
The plant is a breakthrough for Thailand, where no private
\nfirms produce at significant levels for industry, traders said.<\/p>\n
In Taipei, an energy commission official said the Taiwanese
\nfeasibility study had been partly triggered by California's
\ndecision to ban MTBE and use ethanol as its oxygen-enhancing
\nchemical additive to make cleaner-burning gasoline.<\/p>\n
California plans to ban MTBE on Dec. 31, 2002.<\/p>\n
\"We commissioned professional agencies to study using ethanol
\nas a gasoline additive, and also on how badly MTBE could
\ncontaminate groundwater,\" the official said.<\/p>\n
Taiwan's feasibility study would assess the economic impact
\nand availability of ethanol, covering a wide range of issues
\nincluding the cost of a shift to ethanol fuel.<\/p>\n
It was doubtful the government would introduce immediate
\ngasoline regulations to force the use of ethanol, the energy
\ncommission official said.<\/p>\n
State-owned Taiwan Sugar Corp., the island's sugar monopoly,
\nproduces around 20,000-30,000 kiloliters of sugarcane-based
\nethanol every year, but only for food use.<\/p>",
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