Thailand’s Ubon Bio Ethanol may delay ethanol unit start-up to Nov

02 May 2012 05:54  [Source: ICIS news]

SINGAPORE (ICIS)--Thailand’s Ubon Bio Ethanol may delay the start up at its 320,000 cubic metre (cbm)/year ethanol plant at Ubon Ratchathani in northeast Thailand from October to November, a company source said.

The company is delaying the start-up because it is making changes to the equipment at the plant to enable it to use molasses as a feedstock.

“We have decided to make adjustments to the plant’s equipment so that it can produce molasses-based ethanol. This will require additional time to finish building the plant,” the source said.

The producer originally planned to use cassava chips as feedstock for the plant.

However, the prices of this raw material have increased, which may result in squeezed margins, the source said.

Cassava chip prices have risen to as high as $245/tonne (€186/tonne) on 30 April, according to market sources.

“The prices of molasses-based ethanol in the domestic market are more competitive and the raw material cost for this method is currently cheaper than cassava chips,” the source added.

($1 = €0.76)

By: Andrea Heng
+65 6780 4359

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