Year 2009

 January 2009

PTT set to allocate B1bn in alternative-fuel R&D in 2009

New biodiesel mix developed with Hino

By YUTHANA PRAIWAN

PTT Plc, the national oil and gas flagship, has a one-billion-baht research and development budget this year for alternative fuels and products related to oil and chemicals, according to executive vice-president Songkiert Tansamrit.

"We have allocated over one billion baht a year for alternative fuels research over the past several years, since global oil prices began rising," said Dr Songkiert.

He added that the objective of the R&D is to develop fuels to replace mainstream fuels.

The budget can be used to develop products through the company's R&D department and through co-operation with either car assembly companies or universities.

As part of its fuel innovation scheme, PTT yesterday announced its successful co-operation in developing biodiesel formulas with the Japanese leading heavy truck assembler, Hino Motors.

Hino Motors has worked with PTT since 2006, allowing it to test its biodiesel formulas on two heavy trucks. The formulas include high-speed diesel with a 5% , 10% and 20% biofuel mix.

"In the wake of the sharp drop in crude prices we could have more time to develop more alternative fuels to serve future demand. We are confident that oil prices will return to hit US$100 a barrel soon," said Dr Songkiert.

Takayuki Suzuki, executive technical advisor of Hino Motors, said two heavy trucks were test running at distances of 100,000 and 220,000 kilometres by fuelling their tanks with different formulas.

The results have been encouraging as biodiesel formulas have shown the same performance as diesel petrol in terms of emissions, fuel consumption and the smooth operation of engine and parts.

Dr Songkiert said PTT last year also set up development with Toyota Motors, General Motors and Sammitr Motors to establish quality warranties for various types of biofuel, such as oil from jatropha and grease from poultry.

The results will be announced within this year.

PTT has also worked with universities such as King Mongkut Institute of Technology, Kasetsart University and Chulalongkorn to develop biodiesel from algae and plant cellulose.

"These universities' researchers are now choosing the appropriate production process that could squeeze more oil from algae.

"If it succeeds we would definitely allocate funds for further development," said Dr Songkiert.

Current research into algae fuel could improve its potential by dragging down its cost from its current $200-300 per gallon.

Algae is also a valuable material for other products such as animal food, fertiliser and food supplements.

PTT also plans to build a pilot biodiesel production plant using bio-hydrogenation technology near its oil refinery soon, but has yet to disclose details.

PTT shares closed on the Stock Exchange of Thailand at 158 baht, up two baht, in trade worth 6.63 billion baht.

By Bangkok Post

January 15, 2009

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