Thailand Investment Opportunities

1

• Thailand Investment Opportunities
• In Renewable Energy

2
Thailands Energy Situation

• For the last 15 years, energy consumption has
  grown faster than GDP by an average of 40 a
  year1
• Consumption of electricity has grown about 7 per
  year 2000-20052
• Imported oil in 2005 averaged 1,007,200 b/d and
  domestically supplied oil 565,600 b/d. The total
  cost of imported refined products was up 92 from
  20043

1) EPPO 2) NESDB 3) PTT b/d barrels/day
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Energy Situation in Thailand
Energy consumption 51 Electricity, 49
Oil 2005 Thailands energy cost 15.7 of GDP
Hydro 3
Oil 49
Coal 13
Primary energy consumption
Natural gas 35
90 import
Consumption by Sector
Logistics/transportation 37
Agriculture 6
Industrial 36
Resident Commercial 21
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Push for Energy Security

• Increase domestic energy production
• Increase refining capacity
• 2 new crude oil production facilities began
  operating in 2005
• New crude oil discoveries in Sukothai

Source DMF, EPPO

• Purchase energy from neighboring countries
• Purchase agreements with Laos PDR, China, and
  Myanmar

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Push for Energy Security

• Increase efficiency of consumption
• Energy Policy and Planning Office seeks to
  promote RD in energy-conserving technologies
• Incentives to promote importation and use of
  green machinery
• Move towards alternative energy
• Develop alternative energy sources for long term
  stability
• In 2004, alternative energy was made 1 of 6 BOI
  Target Sectors

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2011 Alternative Energy Consumption Targets
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Invest in renewable energy
Ethanol

• 24 ethanol plant concessions have been approved
  of total 4.8 mil LPD.
• 6 existing ethanol plants of total 0.825 million
  LPD
• The 2011 target is 3 million LPD. Thailand needs
  an additional 200,000 litres of ethanol / day to
  be used in making gasohol.

• 9 oil companies distributing Gasohol Octane 95
  via 3,103 gas service stations
• Bangchak is the pioneer on distributing Gasohol
  Octane 91 through about 180 stations only in
  Bangkok areas
• As of May 2006 , total gasohol volume sale was
  about 3.5 million litres per day

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Biodeisel Current Status and Potential
Invest in renewable energy

• Total installed capacity 336,000 litres/day (as
  of mid-2006)
• Actual production 75,500 litres/day (as of
  mid-2006)
• Raw materials used vegetable oil, palm wax, palm
  oil, jatropha
• Market trucks, vehicle commercial trucks
• The government targets the use of 4 million
  litres of biodiesel / day by 2011.

Biodiesel
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Biomass SPP Project
Invest in renewable energy
15 biomass plants have been short listed for
foreign investment.
Source Dept Alt Energy Dev/Efficiency, MOE
10
Thailands Major Agricultural Wastes
Tapioca Tapioca slurry 1,331,520 tons/yr
Tapioca Rhizome 101,771 tons/yr

• Sugar Cane
• Bagasse
• 13,960,739 tons/yr
• Tops and leaves
• 11,412,433 tons/yr

• Oil Palm
• Fiber
• 12,887 tons/yr
• Shell
• 16,347 tons/yr
• Bunches
• 237,285 tons/yr

• Rice
• Husk
• 2,307,984 tons/yr
• Rice Straw
• 24,692,013 tons/yr

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Invest in renewable energy
Municipal Solid Waste

• ? Thailands total MSW is 40,000 tons/day with
  potential electricity generating capacity of 400
  MW
• Currently, 12 MW of electricity is generated from
  MSW.
• The target for 2011 is 100MW.

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Wind capacity within the country
Invest in renewable energy
Wind Energy
Thailands yearly average wind power at 50 M
6.4 m/sec or higher Nakornsri
Thamarat, Songkra, Patthani 4.4 m/sec or
higher Phangnga, Phuket, Trang, Satun
Yearly average wind power 4.4-6.4 m/sec
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Invest in renewable energy
Solar Energy
Solar Power Projects Installed by the Department
of Alternative Energy during 1993-2005
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Increased NGVs 2006
Invest in renewable energy
Currently, there are 18 companies with 70 service
centers to install NGV equipments, and 7 auditors.
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Thailand A global leader in white goods exports
(2006 Q1-Q3)

• 1.37 billion air conditioners
• 136 million air con parts
• 460 million household refrigerators
• 356 million refrigeration compressors
• 75 million freezers

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Share of Major Product in 2005
Strong domestic demand for air conditioners,
with 50,000 to 60,000 new home construction/year
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Thailand Automotive Hub of ASEAN

• 2005 production 1.125 million units(Worlds
  14th largest)
• Export 440,000 units
• Largest in Southeast Asia
• Capacity of 2.0 million units in 2010
• Worlds largest production of one-ton pickup
  trucks
• 820,000 units in 2005

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2010 TargetWorlds Top 10
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Investment Opportunities in Automotive Industries

• Auto assembly for local and export markets under
  AFTA and other FTA arrangements
• Auto part manufacturing to serve domestic and
  export markets
• Potential small car hub -- low fuel consumption
• NGV target 120,000 NGVs by 2008

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Electronics and Electrical Industry

• Export over US36 Billion in 2005, 1/3 of total
  exports
• Major products HDD, IC, PCB, TV, A/C other WG
• The worlds largest producers of HDDs
• Strong supporting industries for electrical
  appliances
• Compressors, motors, plastic metal parts