Unlock Ethanol Cane to Mobilize other Industries’ Growth
In 2023, the Cabinet permitted the utilization of ethanol in industries besides its conventional uses as a biofuel and for alcohol production, aligning with the principles of the BCG Model. The Minister of Industry consequently unveiled an accelerated sugarcane management plan, involving both systematic overhaul and collaboration with the Minister of Energy to promote the use of E20 ethanol-blended fuel as a primary fuel source. This initiative included unlocking ethanol producers for fuel use, diversifying sales to other industries, and incentivizing the purchase of biomass electricity at competitive rates. Additionally, preparations were made to leverage insights from the “Thai Khom” platform to identify hotspots retrospectively over the past three years, intensifying efforts to address PM 2.5 pollution issues.
On March 12, 2024, Miss Pimphattra Wichaikul, the Minister of Industry, revealed that, following a meeting with the sugarcane and sugarcane industry groups, represented by the Three Sugar Mill Consortium (TSMC), discussions were held regarding the development of the sugarcane industry. This was prompted by the current imbalance in income generation for farmers. The ethanol group proposed that the government promote the use of E20 ethanol-blended fuel as a transitional fuel and unlock ethanol producers to sell ethanol to other industries.
While the biomass electricity group requested an increase in the purchase of biomass electricity at reasonable prices, it also sought to renegotiate contracts for the purchase and sale of biomass electricity that are nearing expiration at fair prices.
Additionally, discussions have taken place regarding the utilization of satellite technology for monitoring heat, the sources of PM2.5 particle matter, and their integration into the agricultural sector. This involved high-level officials from the ministry, as well as executives from the Sugarcane and Sugar Board, engaging in dialogue with the management team of Thai Com Co., Ltd., led by Mr. Pathomphob Suwannasiri, CEO. The focus was on leveraging an intelligent platform dubbed the “Sugarcane Intelligence System,” which provides data on agricultural areas and sugarcane plantations, capable of identifying hotspots and offering retrospective data analysis for up to three years.
This dataset proves invaluable for agricultural planning and guiding the farming practices of sugarcane farmers and sugar mill industries. It provides a comprehensive solution, extending to addressing issues such as sugarcane field burning and harvest management.
Regarding assistance measures for farmers, initiatives include promoting low-interest loans tailored to agricultural needs and facilitating access to machinery for sugarcane field management and irrigation. Currently, support is extended to farmers delivering fresh sugarcane to sugar mills by granting them interest rate reductions on loans. This incentivizes farmers to opt for fresh cane delivery over burning practices, encouraging the utilization of cane leaves and tops. These by-products are sold to mills to generate additional income. Furthermore, imminent legislation on clean air aims to sustainably address the issue of sugarcane field burning and its contribution to PM 2.5 pollution.
This technology will be most beneficial when utilized to its fullest potential in comprehensive and efficient sugarcane field management. Emphasizing increased productivity for farmers as the primary goal, the focus should be on optimizing every aspect of sugarcane cultivation.
The sugarcane and sugar industry in Thailand has a total value of 235,000 million baht, divided as follows: sugar accounts for 199,000 million baht (sugarcane: 131,000 million baht), the molasses and ethanol group contributes 22,000 million baht, and the biomass electricity group contributes 14,000 million baht. These figures stem from sugarcane leaves aiming to reduce PM 2.5 particulate matter and waste burning. Additionally, it encompasses both pure and industrial grades, pharmaceuticals, and biofuel ones, as well.
