07/12/2007 (Bangkok Post) -  In response to His Majesty the King's speech underlying the importance of biodiesel, the Bangkok Metropolitan Administration (BMA) has come up with a plan to make the 436 schools under its supervision points of purchase for used vegetable oil to promote the fuel's production. The plan was announced two days after the King made his speech.

Bangkok Governor Apirak Kosayodhin said the BMA was interested in promoting biodiesel.

In March this year, the BMA signed a memorandum of understanding with Bangchak Petroleum to promote the use of biodiesel and a small-scale biodiesel production project made its debut at Phra Khanong district office.

Meanwhile, a total of 20 points of purchase were opened at Bangchak petrol stations across Bangkok. The price of used vegetable oil is now 14 baht a kilogramme, up from 12 baht.

He said 80 city schools are ready to buy used oil from households and foodshops this month while other schools will be taking part in the scheme by early next year.

The BMA has also established a small biodiesel production facility at Pracha Niwet school in Chatuchak district with a capacity of 100 litres a day, he said.

BMA spokesman Thanom Onkedpol said all city schools have a cooperative that can buy used cooking oil directly before selling it to Bangchak.

Wattana Apanont-amata, deputy managing director for information technology at Bangchak Petroleum, said there is a high demand for biodiesel. The firm's sales of biodiesel have risen three-fold from 15 million litres earlier this year to 45 million litres currently.

The company is able to produce only 20,000 litres per day, which is less than half its total capacity.

Agriculture and Cooperatives Minister Thira Sutabutra said the oil palm plantation area would reach over 2.5 million rai in the next five years in order to keep pace with the rapid growth in biodiesel production and to lessen the reliance on imported petrol.

The effort comes in response to the King's speech on using alternative fuels on his birthday on Dec 5.

Mr Thira said his agency had set a goal to cultivate more than 500,000 rai of oil palm yearly. He was speaking at a seminar on agricultural economics in 2007 and the outlook for 2008.

According to an Office of Agricultural Economics report, gross domestic product (GDP) from the agricultural sector rose by 4.3% while Thailand's agricultural products were still in demand on the world market.

However, the impact of the baht's appreciation and rising oil prices were factors limiting the sector's growth.