Thailand’s Ethanol Revolution: Can Biofuels Deliver on Climate Goals?

by Hong Wai Onn (Dialogue Earth/Eco-Business) Advances in biofuels could cement Thailand’s role as a regional leader in renewable energy. -- Since the late 1970s, Thailand has recognised the need for a domestically produced transport fuel. Seeking to reduce reliance on imported fossil fuels, the government turned to ethanol, a renewable biofuel derived primarily from crops.

A major milestone came in 2003, with the launch of the National Ethanol Program and the Gasohol Strategic Plan.

Yet, for much of the past two decades, significant breakthroughs in cassava-based ethanol production were lacking, especially compared to the relatively simpler molasses and sugar cane processes. A major industry advancement occurred in 2024, however, with the yield-boosting adoption of genetically modified (GM) yeast and advanced cellulase enzymes.

These technologies, well-established in corn-based ethanol production, are now being adopted for cassava. Recent trials confirm their effectiveness in maximising ethanol extraction, paving the way for higher efficiency and lower production costs.

Beyond energy security, ethanol is a key tool of Thailand’s strategy to cut greenhouse gas emissions in the transport sector. Studies indicate ethanol reduces carbon dioxide emissions by about 40 per cent compared to petrol, making it an attractive option for decarbonising economies.

Following the Thai government’s recent decision to extend its biofuels mandate by two years, to 2026, demand for E20 fuel (20 per cent ethanol, 80 per cent petrol) and E85 (85 per cent ethanol, 15 per cent petrol) is expected to rise.

New GM yeast strains and advanced cellulase enzymes represent a significant leap forward.

Ethanol as a complement to EVs

Thailand is expanding its EV industry as part of its transition to a low-carbon economy. While some argue ethanol will become obsolete as EV adoption grows, the reality is more complex.

EVs offer greater environmental benefits when powered by renewable energy, but in Thailand, around 80 per cent of electricity in 2022 was generated with fossil fuels.

Another major issue is affordability. Despite government incentives, high upfront costs put EVs out of reach for many people. Finally, charging stations remain scarce, particularly in rural areas, posing challenges for long-distance travel. There are plans to grow the charging network, but it will take time.

Given these issues, ethanol should not be overlooked in Thailand’s energy transition. Instead, it should be seen as a complementary solution that supports immediate decarbonisation while the EV sector continues to develop.

Opportunities for expansion

With the right investments, Thailand could leverage its expertise in ethanol production to enter the sustainable aviation fuel (SAF) market. This is a key target of Thailand’s 2024 Alternative Energy Development Plan (AEDP).

Currently, Thailand mainly relies on used cooking oil (UCO) for SAF, but as blend rates rise, so too will demand, which is expected to surpass available SAF supplies. While importing UCO is possible, it is not a sustainable long-term solution.

To meet this challenge, Thailand could explore ethanol-based aviation fuel through the alcohol-to-jet (AtJ) process. This technology has already been demonstrated by firms including Gevo and LanzaJet. READ MORE