07/16/2002 (Asia Intelligence Wire) - Three private and state agencies arepreparing to work with a Swedish chemical producer to develop a newbio-ethanol fuel called e-diesel for diesel vehicles.Representatives of the National Metal and Materials Technology Centre, PTTPlc, the Pollution Control Department and Akzo Nobel Surface Chemistrysigned a memorandum on research and development of the alternative fuel.The project would study a way to produce e-diesel, a mixture of diesel oiland 10% crop-based ethanol, its properties and commercial viability, saidPuritad Bhandhubanyong, the director of MTEC.He said MTEC would set aside 10 million baht to support the one-year pilotproject while other agencies would provide equipment and raw materials.The fuel will include an additive called Beraid ED-10 produced andsupplied by Akzo Nobel. The additive has properties to balance diesel oiland ethanol. It is the first time the company has worked to develope-diesel outside of Europe.Trials will involve three types of fuel mixtures: 1%, 1.5% and 2% BeraidED-10 with 89%, 88.5% and 88% diesel oil. The portion of ethanol would beconstant at 10%."Each group will be tested with diesel engines to compare efficiency ofvehicle performance, combustion, exhaust fume, acceleration rate,durability and corrosion of engines and parts," said Mr Puritad.Sawang Boonyasawat, executive vice-president of the PTT Research andTechnology Institute, said the project, if successful, would help savemillions of baht in annual import costs for diesel oil.E-diesel would be commercially viable, he said, if ethanol was priced atno more than 12 baht a litre and diesel oil at a maximum of US$25 abarrel.Previously, PTT and the National Electronics and Computer TechnologyCentre had collaborated with Ford Motor Co of the United States toresearch and develop so-called diesohol, a mixture of diesel oil and 10%ethanol, using Ford Ranger one-ton pickup trucks.Gasohol, a mixture of gasoline and 10% ethanol, is available at a few PTTservice stations. Still, sales are only 1,000 to 2,000 litres a daybecause the supply of ethanol remains small. The daily supply from theRoyal Chitrlada Project is 400 to 500 litres. Gasohol is 50-70 satang alitre cheaper than premium gasoline.Should the e-diesel project succeed, Mr Sawang said he would seekgovernment support to use the fuel as in Brazil, where the governmentencouraged the use of diesohol to reduce ash deposits.Urban Lofvenberg, global account manager of fuel additives for Akzo Nobel,said the company opted to support the project because the use of ethanolin Asia remained rare. Thailand was making the most progress in thedevelopment of the additive.

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