21/06/2011 (Bangkok Post) - The Energy Ministry says another 1% of methylester or pure biodiesel will be added in B4 biodiesel production starting in July.

Permanent secretary Norkhun Sitthipong said the addition is in response to a request by the National Palm Oil Policy Committee, who foresaw a growing surplus of crude palm oil and increased stockpiles this year.

However, every 1% addition of pure biodiesel will add 10 satang a litre to the government's subsidy.

Crude palm oil (CPO) stock at the end of this month will be an estimated 242,000 tonnes, up from 213,000 tonnes on May 31. The level is expected to rise to 314,000 tonnes by the end of September.

B4 biodiesel, a blend of 4% palm-derived biofuel in diesel, will be available at pumps nationwide in place of B3 from July 1 to Sept 30.

The Energy Business Department will soon announce the legal use of B4, which will help absorb the CPO surplus, particularly during the peak of the production season.

Afterwards, the energy policy planner will review the amount of pure biodiesel to be used again.

Mr Norkhun said CPO production this year will total 1.54 million tonnes, of which 850,000 tonnes will go to the food and industrial sectors and 340,000 to B3 production.