The Myanmar private sector is participating in playing part in production of bio-diesel fuel, planning to build a first and largest private-run bio-diesel plant in the country at the beginning of next year, private industries sources said Saturday.
With a projected production of 80 tons of bio-diesel per day, the 6-hectare bio-diesel plant in Yangon's Thardhukan Industrial Zone will be constructed by the Khaing Khaing Group Co. Ltd with an investment of 8 million U.S. dollars and Chinese technical know- how will be introduced, the local 7-Day journal also said.
Using domestic raw materials, the plant will generate 20,000 tons to 30,000 tons of bio-diesel per year on completion, the journal said.
Myanmar has projected a sharp increase of biofuel output next year from Jatropha physic nut plantations to substitute diesel. Up to 8 million acres (3.24 million hectares) of the plants will be grown to realize the projected increase of the biofuel up to 20 million tons a year, a state-run enterprise dealing with industrial crops under the Myanmar Ministry of Agriculture and Irrigation said.
Jatropha physic nuts were being planted on 1.6 million acres ( 648,000 hectares) mainly in three dry zones of Mandalay, Sagaing and Magway divisions, it said.
Official statistics show that Myanmar yielded about 90 million gallons (405 million liters) of diesel a year while importing more than 200 million gallons (900 million liters) annually to meet its domestic demand.
According to the enterprise, Myanmar has about 15.85 million acres (6.41 million hectares) of land suitable for growing Jetropha plants.
Myanmar has eyed physic nut oil as fuel since late 2005, advocating the use of it as fuel in the country and urging the country's people to grow such nut plantations extensively.
The authorities also stressed the need for the country to use such biodiesel to avoid spending millions of foreign exchange on fuel, pointing out that the use of biodiesel as an alternative fuel for petrol, kerosene and diesel would also enable rural people to avoid searching fuelwood and help protect forests from depletion and conserve trees.
Cultivation of an acre (0.405 hectare) of land with 1,200 physic nut plants can produce up to 100 gallons (454.6 liters) of biodiesel, Myanmar experts said.
There are two physic nut species in Myanmar -- Castor and Jatropha.
Meanwhile, the Myanmar energy authorities raised again on Aug. 15 the official prices of fuel including gasoline, diesel and compressed natural gas (CNG) supplied to private vehicles to a new high of two to five times respectively in less than two years since October 2005.
The government held that despite the fuel price hike, which is still comparatively lower than the regional and the world market prices, the government still remains subsidized with the fuel supply.
In a bid to cut the cost of oil imports as well as under an ambitious plan to modify all vehicles in the country in terms of fuel operation, the government has also introduced a program since August 2004 to substitute fuel with gas for transportation purpose, targeting to convert all diesel and petrol vehicles operating in the country to run on CNG.
Source: Xinhua
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