1 AIT Asian Institute of Technology

An analysis of Ethanol production from Nypa fruiticans by local community along the coastal region in Thailand: a case study of Pak Panang Basin Region, Nakhon Sri Thammarat province

AuthorKruewan Thong-Om
Subject(s)Alcohol
Nypa palm--Thailand--Nakorn Sri Thamnmarat--Pak Panang Basin Region

NoteA thesis submitted in partial fulfillment of the requirements for the degree of Master of Science, School of Environment, Resources and Development
PublisherAsian Institute of Technology
AbstractThe sharp increase in imported fossil fuel prices have become a matter of economic stability, and the Thai economy has been directly affected. Hence, the government declared the ethanol production policy. Producing ethanol allows commodities prices to increase. The most popular cash crops are usually used as ethanol raw material in Thailand, namely cassava, sugarcane and molasses. Nypa fruticans or nypa palm is another energy crop that can produce ethanol by using its sap. Nypa palm is a new resource, which is economical for producing ethanol. It would be better to have another energy crop that is not competing with food crops. Even though nypa sap has high potential to produce ethanol for bio-fuel, there is no research about the feasibility of ethanol production in the coastal communities. No local community enterprise, especially in rural areas, is producing ethanol for use in their community. An analysis of nypa ethanol production by local communities along the coastal regions in Thailand aims to support appropriate decisions to develop ethanol production from nypa sap by local communities. The results of this analysis indicated that people in rural areas need knowledge to understand ethanol, including knowhow for ethanol production. They support ethanol development because it could generate more local jobs. Moreover, there is another market for nypa farmers. However, they are concerned about environmental issues, especially those related to other areas of agriculture, such as paddy farms and shrimp farming. Also, education and management skills are required by the government. Farmers who used fertilizer and family labor have lost 2,290 baht/year, while farmers who have not used family labor and fertilizer have gained higher profits of 9,747 baht/year. Selling only nypa sap has higher economic value than nypa sugar production: nypa sap indicated IRR (44%), NPV (58,057) and R/C ratio (1.47), while nypa sugar indicated IRR (0%), NPV (-2,177), and R/C ratio (1.12). Moreover, selling sap has a shorter payback period (8th) than sugar production (15th). There are nypa areas of 3,990 rais (638 hectares) in Kanarp Nark subdistrict that can produce 34,596,891 liters of ethanol per year. To meet gasohol consumption in Pak Panang district (43,105.7 liters), nypa palm areas of 45.69 rais (7.31 hectares) are required. The operations cost per unit has been referenced to ethanol from molasses (based on the July 2009 price). The estimated nypa ethanol unit cost was 61.02 baht/liter, of which 54.90 baht/liter was raw material cost and 6.125 was operating cost per unit. At the market price of ethanol in the last three months of 2009, which has been 24-25baht/liter, nypa ethanol generates a loss of 36.02 baht/liter. Thus, it is unprofitable at this time. Nypa farmers should find alternative businesses to add value to the nypa palm beside nypa ethanol, such as nypa wineries. Nypa wineries as a farmers’ cooperative model could provide profitability to nypa farmers. Nypa winery financials show an attractive value, such as B/C (1.46), NPV (7 million baht) and IRR (56.44%). In conclusion, results of this study suggest that nypa sap has a high potential for both the ethanol and winery industries. To support self-sufficiency of energy use, the government should consider providing opportunities; including education and technology, to local farmers to produce ethanol.
Year2009
TypeThesis
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Food, Agriculture and Natural Resources (Former title: Department of Food Agriculture, and BioResources (DFAB))
Academic Program/FoSFood Engineering and Bioprocess Technology (FB)
Chairperson(s)Shivakoti, Ganesh P.;
Examination Committee(s)Athapol Noomhorm;Ebbers, Theo;
Scholarship Donor(s)Royal Thai Government Fellowship;


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