2/25/2005 Thai Press Reports - The Ministry of Energy is consideringforming a special purpose vehicle (SPV) to promote biodiesel production,Krungthep Turakij reported.

The Ministry of Energy has a plan to promote the production of palm oiland to form industrial clusters to produce biodiesel from palm oil. Theministry plans to establish an SPV in the form of a private company toguarantee the risk of financial institutions that provide loans for palmfarmers and biodiesel producers.

The target area for undertaking the pilot project is Tabor District inNong Khai Province. Later another 84 biodiesel complexes would beestablished in other parts of the country.

PTT and Bang Chak Petroleum are interested in investing in the project.