The Status of Crude Palm Oil Industry in Thailand

The Status of Crude Palm Oil Industry in Thailand

Tinno Kwandee^1’*, Joseph Khedari ¹ , Rattanakorn Rawangkul, and

Issaree Hunsacharoonroj        

¹ Rattanakosin College for Sustainable Energy and Environment (RCSEE),

Rajamangala University of Technology Rattanakosin, 96 moo 3 Puthamonthon Sai 5, Salaya, Puthamonthon, Nakhon Pathom, 73170 Thailand.

* Corresponding Author: Tel/Fax: +662 441 6065, +662 889 4585-7 Ext. 2630,

E-mail:  tinno email : tinno_kwan@hotmail.com

ABSTRACT

This paper gives an overview of the status of crude palm oil industry in Thailand. Nowadays the cost of energy import is about 1,125 M.Baht (2011); energy imported includes mainly crude oil, refinery oil, coke, natural gas (NGV), liquid petroleum gas (LPG) and others. That is a big burden for politicians as it does indicate a certain risk at energy security level, for instance 70% of electricity is generated using natural gas. Government and involved organizations are highly engaged to build an appropriate policy to ensure energy security in the future.

            The Energy Policy and Planning Office of Ministry of Energy (Thailand) have a plan to increase alternative energy ratio to 25% in 2022 (2012 to 2022). Today the amount of renewable energy (mainly solar, hydro bio-gas, biomass, thermal energy used) is 7,413 ktoe, about 7% of total energy consumption.

            Although farmers have sufficient knowhow and knowledge for plantation, good fertilizer soil and appropriate climate, bio diesel from palm oil is still at earlier stages. This due to various reasons including political, management and efficiency.  Last year Thailand imported 150,000 ton pure oil palm from Malaysia. B2, B5 commercial biodiesel disappeared from gas stations due to the lack of supply.

In this paper, the status of the crude palm industry is reported. There are 50 registered Palm oil Mill Factory (CPO product) factories, and three Oil Palm Refinery Factories (Pure product); the production of fruit palm oil plantation is 9,030,000, the cultivated area is 3,640,000 Rai. Main issues related to CPO from the alternative energy plan of the Energy Policy and Planning Office the Ministry of Energy, the Ministry of Agriculture and Cooperatives, Office of Agricultural Economics and the National Committee of Palm Oil Policy are reported and discussed. The impact of Malaysia and Indonesia policies on Thailand program to promote palm oil and bio diesel is also considered.

           

Key words: Crude Palm Oil Industries, Energy Policy, Data Analysis

cultivated area is 3,640,000 Rai. Main issues related to CPO from the alternative energy plan of the Energy Policy and Planning Office the Ministry of Energy, the Ministry of Agriculture and Cooperatives, Office of Agricultural Economics and the National Committee of Palm Oil Policy are reported and discussed. The impact of Malaysia and Indonesia policies on Thailand program to promote palm oil and bio diesel is also considered.