Thailand’s Oil Palm Board resolves to adjust biodiesel mixture from B7 to B5 for 2 months

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The National Oil Palm Board meeting resolved to promote palm oil’s usage in “green diesel” and aviation biodiesel and agreed in principle to an income guarantee program for oil palm growers from 2021 to 2022

The National Oil Palm Board has resolved to adjust the mixture of biodiesel from B7 to B5 for two months, in order to maintain the consumption level of diesel fuel amid rising global fuel prices.

According to the Office of Agricultural Economics (OAE), the decision was made by the Energy Policy and Planning Office and was acknowledged by the Ministry of Energy during the palm board’s latest meeting, chaired by Deputy Prime Minister General Prawit Wongsuwan.



The Ministry of Energy backed the decision, stating that oil palm production is likely to be between 120,000 and 140,000 metric tons over the next couple of months, which is lower than the yearly average. It added that lowering the biodiesel content should help keep oil palm prices stable and protect farmers from any price drops.


The meeting also resolved to promote palm oil’s usage in “green diesel” and aviation biodiesel. Additionally, it agreed in principle to an income guarantee program for oil palm growers from 2021 to 2022. The price control program would require refineries to sell 18 percent palm oil at a minimum price of 4 baht per kilogram. The scheme will run from September 2021 to August 2022.



Green diesel is a second generation biofuel that has a similar molecular structure to petroleum diesel, but with enhanced diesel properties. Green diesel is produced by hydrotreating triglycerides in vegetable oils with hydrogen. (NNT)