The Oil Fuel Fund Office (OFFO) organizes knowledge exchange study visits by inviting government and private agencies to participate in creating knowledge and understanding of the energy situation, role and history of the Oil Fuel Fund, as well as visiting the bioethanol production process of Ubon Bio Ethanol Public Company Limited to exchange ideas on how to reduce compensation payments for oil fuels containing biofuels.

Mr. Wisak Wattanasap, Director of the Oil Fuel Fund Office, revealed that the OFFO has organized a study tour activity to exchange knowledge by bringing relevant government agencies, private sector and media to participate in creating knowledge and understanding of the energy situation, role and history of the Oil Fuel Fund. As in the past, the Oil Fuel Fund plays an important role as a tool to support the retail price of diesel fuel in the country at a reasonable level, which is considered as the main role of the Oil Fuel Fund to maintain the stability of energy prices in the country in times of crisis.

Another important task under Section 55 of the Fuel Fund Act 2019 is to reduce compensation payments for fuels containing biofuels. In the past, the Cabinet of Ministers decided to extend the period for processing compensation payments for fuels containing biofuels by 2 years, until September 24, 2024, this is because there are factors that make the situation not yet conducive to reducing such compensation. The extension of the period of reduction of compensation will serve as a mechanism to maintain the market value of fuels containing biofuels by creating a difference in retail prices to incentivize the use of bioenergy. It also helps farmers earn income by expanding agricultural crops.

By visiting the ethanol production process of Ubon Bio Ethanol Public Company Limited (UBE), to have a study tour about the biofuel production business from ethanol, and follow the progress of biofuel business that has potential and is ready to adapt to the situation if the compensation for fuel containing biofuel has to be canceled eventually. UBE is an excellent example of how biofuels can be developed to produce a variety of products that meet the needs of consumers.

Ms. Sureeyot Khowsurat, Chief Executive Officer and Managing Director of UBE, stated that “The company is one of the largest producers and distributors of fuel grade ethanol in the country, with an ethanol production capacity of 400,000 liters per day, or 146 million liters per year. This is considered to be the largest production capacity per production line among cassava ethanol producers that can produce both fuel grade and industrial grade alcohol. We currently have a temporary license to produce alcoholic hand sanitizer products.”

The company aims to conduct business based on the concept of creating shared value for sustainability. In particular, it is promoting the cultivation of high-quality organic cassava through the "Northeast S 2 Model" project (formerly the Ubon Model Project), and focusing on the production process that has the least impact on the environment, which includes pursuing the goal of making the most valuable use of available raw materials and resources, as well as increasing the value of waste generated during production under the zero waste policy, this means reducing waste in the first place, so that there is no waste in the production process. We're making the most of by-products from the production process, such as water and cassava pulp. It is used as a feedstock for the production of biogas, which is used as an alternative energy source in ethanol and tapioca starch production plants. In addition, some of the biogas produced is used to generate electricity and circulate within the factory to reduce production costs.

Regarding the ethanol business, which is one of the main businesses, Ms. Sureeyot said that overall, the ethanol business still has opportunities for growth because it is clean energy and can be used for many other purposes but it needs government support both in terms of industrial grade, which should allow liberalization in the use of industrial grade ethanol to expand the use of ethanol in different industries, for example, expanding its use to the bioplastic, pharmaceutical and cosmetic industries, etc. At present, the company has set a goal to promote this through technology and innovation by promoting cooperation in research & development with various agencies, for example, research & development cooperation with PTT Innovation Institute to utilize advanced biotechnology to develop heat-tolerant yeast strains to help reduce cost and increase efficiency of ethanol production, etc.

"As for fuel grade ethanol, there may be a direction that the Oil Fuel Fund will have to cancel compensation payments for fuel that contains biofuels in the future. However, I believe that government agencies still need to have a policy to promote the use of E20 gasohol as a primary fuel oil, in addition, the use of fuel grade ethanol should be pushed to the aviation industry as a clean fuel for aircraft and others, this will also help to promote ethanol consumption in the country to close to the current production capacity. This is not only helps to raise the level of Thailand's ethanol industry but also supports the use of clean energy, reduce oil imports from abroad, makes the country to reduce its dependence on foreign oil and create stability and energy security during periods of fluctuating fuel oil prices. And most importantly, it helps farmers by supporting the country's agricultural products as well.” Ms. Sureeyot concluded.