23/1/06 KRABI (Asia Pulse) - A government-supported bio-diesel project is anticipated to help reduce Thailand's imports of diesel by up to Bt60 billion (US$1.5 billion) annually over the next five years, according to Energy Minister Viset Choopiban.
Mr. Viset told journalists on Sunday when he inspected progress on stated-backed oil palm plantations in the country's southern Krabi Province that the resort province is now ready for bio-diesel production both for community and commercial consumption - as an alternative energy in the future - given its sufficient raw material, oil palms.

The government had supported expanding oil palm plantations up to eight million rai (2.5 rai = 1 acre) nationwide by 2010, he noted.

The government had also targeted to reduce the country's diesel imports by 10 per cent or around Bt60 billion by 2011, replacing them with the locally-produced bio-diesel, said the minister.

The local bio-diesel project will also help generate more incomes for local farmers, according to Mr. Viset.

Meanwhile, Deputy Permanent Secretary for Energy Pornchai Rujiprapha said the Bank for Agriculture and Agricultural Cooperatives (BAAC) had agreed to render financial support to local oil palm growers who group themselves into cooperatives with capacity of bio-diesel production of around 4,000-6,000 litre a day. 

"Each of the local bio-diesel plant is projected to need a fund of around Bt15 million to run commercially and BAAC has agreed to render the financial support to all the plants with a specially-offered interest rate," said Mr. Pornchai.

(OANA/TNA)