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CHAPTER 5. |
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Findings from GMS Biofuel Assessment |
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Obstacles
Lack of
awareness
New product vs proven product
Lack of consolidated demand
Bio-fuel Price is not promising
No buyback arrangement
Rapid area expansion, no time to choose high yielding varieties of feed stocks
Inadequate trainings
High seed costs, but no subsidy
Low crude oil price
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Key to stronger BF Market
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Guaranteed price
Guaranteed demand
Subsidy
Tax exemption
Revolving fund
Establish purchasing deport
Competitions among supplier
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Findings from GMS Biofuel Assessment (Business Options) |
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Opportunities |
Challenges |
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- Uncultivated Land (5.9 mil ha) no competition with present food crop areas
- Low labor cost that gives low-cost feedstocks
- Diverse agro-ecological conditions
- Strategic geographic locations
- CDM
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- R & D and technology
- Human Resource Development (HRD)
- Facilitation of trade and investment (local+FDI)
- Public-Private partnership
- Supportive policies favorable for all the stakeholders involved in the value chains
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Potential for development of cross-border trade related to biofuel business |
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- Scenarios for Contract Farming
- Conventional Trade Policy
- Foreign Investment Law
- Special Privileges under ACMECS scheme
- Special Economic Zones Law
- Framework Agreement between Thailand and Myanmar under ACMECS scheme
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Model for Contract Farming under Conventional Trade Policy |
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Model for Contract Farming under MIC Law of Myanmar |
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Model for Contract Farming under ACMECS Special Privileges of Myanmar (A) |
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Model for Contract Farming under ACMECS Special Privileges of Myanmar (B) |
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Potential involvement of Small Farmers in the Biofuel Business Development |
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- Established practice of contract farming between the farmers and SME sugar-cum-ethanol mill owners
- Question for community-based biodiesel business due to lack of R&D, availability and cost of feedstock, lack of environment (supports) and culture for forming groups
- Government initial jump-start programs would be needed
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Potential Options for Promoting Biofuel Business Ventures |
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- Two-pronged strategy: both community-level (biogas, bio-digesters, ethanol, jatropha) and large scale level (ethanol) provided the sound policy and right technology are already in place
- Short term for bio-ethanol, biogas, gasifiers but long term for bio-diesel (jatropha, rapeseed and pongamia)
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Policy Options (The Way Forward) |
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- Establish national authorized body or central steering body for guiding policy on national bio-energy development program and plan;
- Formulation of the long term bio-fuel development plan;
- Review on existing regulations, additions and amendments as necessary to fill the policy gap;
- Strengthening public awareness program to promote the utilization of the bio-fuels;
- Integrate research and development activities done by various agencies;
- Small and medium scale bio-fuel plants established in rural areas
- Government support program such as tax exemption, tax holidays, credit/ loan and other incentives *including revolving funds;
- Strengthening collaboration of public- private partnership in production, distribution, marketing and research;
- Set up pricing policy of bio-ethanol blend and bio-diesel blend products for fair competition; and
- Formulation of the projects related to the bio-fuel development.
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Indicative National Bio-fuel Program |
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| Vision - |
Country's energy security generated by renewable energy resources and competitiveness of bio-fuel
industry in the region |
| Mission - |
Towards the realization of the vision, the country shall accelerate the development of bio-fuel industry in the country in order to achieve energy security without affecting food security, maintain environmental sustainability, and develop national economy. |
| Objectives |
- To reduce dependency on imported fossil fuels
- To increase economic activities in the country
- To improve energy efficiency
- To generate rural employment
- To augment farmers' income |
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Indicative National Bio-fuel Program Framework |
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| ・Feedstock Development, production & extension |
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Sugarcane, cassava, sweet sorghum & jatropha prioritized and other potential feed stocks |
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Expansion of bio-fuel crops areas |
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Allocation of fallow land to national as well as foreign investors |
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Encourage contract farming and joint venture |
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Variety improvement |
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Crop research & development |
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Mechanization |
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Fertilization |
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Community awareness & participation |
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| ・Bio-fuel Industry development |
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Bio-fuels road map |
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Construction of large scale plants & expansion of medium and small plants in rural areas |
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Competitive pricing |
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Storage, transport, handling & blending |
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Distribution and sales |
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Application development |
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| ・Policy Formulation & Regulatory |
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Enact Bio-fuels Energy Law |
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Pertains to enabling rules & regulations to comply the enacted Laws |
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Covers all major areas and strategies of the program |
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| ・Investments, Incentives & Promotion |
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Government financing to industry establishment |
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Credit facilitation services |
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Tax exemption, holidays & incentives |
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Market development services |
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Human resources development |
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Seminars, conferences, exhibitions & workshops |
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Media information |
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Information technology |
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| ・Research and Development |
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Production process development |
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By-products development |
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Integration of research findings from research agencies |
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Blend performance tests & standards development |
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Utilization efficiencies |
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Pilot plants and showcase projects |
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| ・Standard and Quality Assurance |
| * Cover technical & environmental compliance in the following areas |
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Production facilities |
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Utilities & services |
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Bio-fuels & blends |
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Utilization technologies |
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| * Enforcement |
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Inspection & Monitoring |
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Penalizing |
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