Cambodia to Export Bio Energy to European Markets starting October this Year

By Soy Sophea

Cambodian energy officials have expressed satisfaction with the private sector which has promised to produce ethanol for energy needs while the price of petroleum is increasing.

Ith Prang, Secretary of State at the Ministry of Mines, Industry and Energy, said that currently there is a range of alternative fuel sources that may be harnessed to supply the World’s demands.

Even though Cambodia does not as yet produce ethanol to reduce her energy demands, he urged all those with the capacity to cater for demand in Cambodia. He compared the 10 percent of motive power generated by ethanol in Thailand to the 25 percent generated by the same means in Brazil.

He said his ministry is conducting research into the uses for ethanol and is looking into ways to produce the fuel additive more effectively out of the raw materials such as cassava and corn.

The Secretary of State recommended the use of ethanol as it is kinder to the environment and has less impact on global warming. “It is good for keeping our environment clean and safe for both human and animal life.”

Khieu Pongly, Assistant Officer with the Raw Materials Department of MH Bio Energy Group, said that his factory needs to buy at least 300 tons of cassava per day to produce biomass and ethanol. He estimated that demand would be fully supplied even though the factory opened as recently as June this year.

Pongly said cassavas had been chosen to produce ethanol. He also said that the use of ethanol has less effect on the environment, and that his company produces ethanol for the European market rather than the Cambodian. He said most countries in Europe cannot get enough of the gasoline additive.

According to current market prices, cassava now costs US $170 to $180 per ton. It takes roughly 2.5 kilograms of cassava to produce one liter of ethanol. Cambodia's current cassava crop is insufficient to meet the needs of the ethanol industry and Pongly said he had to import more of the crop from Vietnam. His distilleries can process up to 135,000 tons of cassava per year, but the entire cassava crop from Kampong Cham and Battambang provinces amounts to no more than 20,000 tons per year.

Pongly said that the price of ethanol which can be used instead of gasoline is about US $500 per ton. He confirmed that his company is ready to transport ethanol to European countries in October this year. He said that with the investment of US $11 million, MH Bio Energy Group will focus exclusively on the European market.

Choi Wee Sung, chairman of MH Bio Energy Group, met Cambodian Prime Minister Hun Sen in July, briefing to the Prime Minister of his company’s goal in producing bio energy. He was quoted in local newspapers as asking the Prime Minister to encourage farmers to grow cassava. He said that he had purchased 30,000 tons of the crops to date at a cost of US $5.6 million.

He said at the same time as the world needs petroleum, it also needs bio energy. He added that in Thailand 10 percent of energy needs are satisfied by biomass, whilst in Brazil the figure was 25 percent. He said that South Korea was looking to boost ethanol use by 5 percent, leading up to 2010.

Sek Chim, 59, who plants cassava over 20 hectares of land in Snuol district, Kratie province, said that he has planted cassava for three years. Previously he planted cassavas across only five hectares of land.

Chim said that planting cassava is an easy matter and a very efficient way to generate personal cash. “Before I started planting, my family’s condition was average,” he said. “But now I am the proud owner of two new tractors and a brand new $50, 000 house.”

Chim appealed to other Cambodian farmers to think about planting for the production of power. With 20 tons of cassava per hectare, it made good sense to grow the crop.

In order to maintain soil fertility, Yang Saing Koma, President of the Cambodia Center for Study and Development in Agriculture (CEDAC), made a timely reminder to all farmers to adopt a crop rotation system, planting cassava this year and nitrogen enriching crops the next.