Asia's Up And Coming Ethanol Sector
BMI View: Asia is one of the most dynamic continents in terms of production and use of ethanol. Buoyed by supportive government policies and strict mandates, Thailand and the Philippines are at the forefront of the region. Meanwhile, low profitability and low availability of ethanol feedstock hampers the development of a domestic biofuel industry in India and the rest of South East Asia. In North Asia, overall reluctance to use food-based ethanol and limited production is likely to cap consumption growth in the medium term. Japan would need to ramp up imports should it implement an ambitious fuel ethanol consumption plan.
Asia is one of the most dynamic continents in terms of production and interest into the development of biofuels, and especially ethanol. Asia's rising focus on biofuels is mainly being driven by steady rise in energy demand and growing pressure on their trade balance, as most countries are largely dependent on oil imports, and are committed to reduce greenhouse gas emissions. Abundant feedstock in some countries and strong government support for increasing domestic value added products to the sector are also behind the boom of the industry.
Buoyed by supportive government policies and strict mandates, Thailand and the Philippines are at the forefront of the ethanol production and consumption (as % of total fuel oil use) in Asia. Thailand has the largest blending rate in the region, as it is now filling its E10 mandate.
|Ethanol - Brazil (LHC) & Thailand (RHC) Exports By Country, Average 2011-2012 (As % of total volume exported)|