B20, a blend of diesel with 20% palm oil-derived methyl ester, is being positioned as a cost-effective alternative amid global crude price volatility, reports the Bangkok Post.
The relaunch comes as diesel prices climb sharply amid the Middle East conflict. B20 is cheaper than B5, the more widely used biodiesel containing 5% methyl ester, by B5 per litre.
The two companies would not disclose how much subsidy the government is offering for B20.
Bangchak and OR are targeting operators in the transport, fisheries and industrial sectors, though B20 will only be available through bulk purchases rather than at retail filling stations.
The two companies would not disclose by how much the government plans to subsidise B20.
The administration’s renewed push for biodiesel coincided with its announcement of a B6 per litre increase in gasoline and diesel prices, citing limited subsidy funds.
The Oil Fuel Fund, which subsidises fuel prices, reported a deficit of B28.1 billion as of Mar 22, underscoring the urgency of finding cheaper alternatives.
Bangchak and OR are targeting operators in the transport, fisheries and industrial sectors, with B20 only available for bulk purchase, not at retail filling stations.
"We will subsidise biodiesel the same way we subsidise Gasohol to incentivise consumers," said caretaker transport minister Phiphat Ratchakitprakarn.
Gasohol E20, a blend of gasoline with 20% ethanol, currently sells for B36.05 per litre, cheaper than Gasohol E10, which contains 10% ethanol and is priced between B40.68 and B41.05 per litre.
Meanwhile, Global Green Chemical (GGC), the bio-chemical arm of PTT Group, is working to make palm oil-derived methyl esters more competitive with fossil fuels.
The company is piloting smart farming technology to improve palm oil yields and collaborating with Germany’s International Cooperation Agency to encourage farmers to adopt sustainable palm oil standards.
Kridsada Prasertsuko, managing director of GGC, said the initiative aims to improve product quality, expand access to premium markets and reduce carbon footprints across the supply chain.