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Evaluation and Suggestions for Improvement of 1

Energy Self-Sufficiency Community-Based Biodiesel Project (Northern and Northeastern Regions)

Evaluation and Suggestions for Improvement of

Energy Self-Sufficiency Community-Based Biodiesel Project

(Northern and Northeastern Regions)

1. Background

In accordance with the government resolution of January 18, 2005 on the development and

promotion of biodiesel in Thailand and an associated action plan dated May 17, 2005, the Ministry of

Energy, together with the Ministry of Agriculture and Cooperatives, has been promoting the production

and consumption of biodiesel in the country at both community and commercial levels, with the goal of

reaching a daily production of 3.02 million liters of B100 by 2011.

During the period 2005-2006, the Ministry of Energy via the Department of Alternative Energy

Development and Efficiency (DEDE) implemented “Energy Self-Sufficiency Community-Based Biodiesel

Project” in 72 communities around the country; and in 2007 planned to expand the project to cover

additional 400 communities. To address common implementation problems and ensure project

sustainability, project evaluation is necessary.

2. Objectives

1) To determine success and challenges of “Energy Self-Sufficiency Community-Based Biodiesel

Project”

2) To improve feedstock management efficiency, consumer confidence in biodiesel, and

community participation

3) To address common implementation problems and provide suggestions for improvement of

“Energy Self-Sufficiency Community-Based Biodiesel Project”

3. Project Coverage

168 select communities, under Department of Alternative Energy Development and Efficiency’s

Energy Self-Sufficiency Community-Based Biodiesel Project, in Northern and Northeastern Thailand

4. Scope of Work and Implementation Plan

To ensure that the above objectives are met, we specifies the following scope of work and

implementation plan (Figure 4.1):

1) Obtaining list of select communities from the Department of Alternative Energy Development

and Efficiency; and reviewing current status of biodiesel production and capacity of these communities,

e.g. feedstock sources and prices, feedstock and chemical procurement, and biodiesel production and

sales

Executive Summary Report



2) Follow-up, monitoring, and evaluation of existing biodiesel projects in select communities (a 2-

day activity for each community) for improvement of management efficiency; and grouping of communities

into subgroups for better collaboration among all biodiesel stakeholders, including:

• Assessing communities’ knowledge and understanding of feedstock management,

manufacturing process, and wastewater treatment, as well as biodiesel awareness in the communities

• Production assessment and biodiesel sampling (at least 1 sample per community) for quality

control based on the 2006 Department of Energy Business characteristic and specification regulation of

community-based biodiesel for agricultural engines (specifically, viscosity at 400C, flash point, water and

sediment, acid number, and total glycerin)

• Assessment of biodiesel wastewater treatment facility’s performance and water sampling (at

least 1 sample per community) for determination of pH, BOD, COD, TSS, and oil and grease values

3) Identification of problems and detailed solutions for each select community and subgroup

based on results from 2)

4) Development and execution of plan for improvement of feedstock management, consumer

confidence in community-based biodiesel, and biodiesel quality which meets the Department of Energy

Business standards; and biodiesel sampling for post-execution quality control (a 2-day activity for each

community)

5) Summary of study results and suggestions for improvement of “Energy Self-Sufficiency

Community-Based Biodiesel Project”

6) Organizing at least 1 seminar, with at least 150 stakeholder participants, to present study

results




Figure 4.1 Scope of work and implementation plan

5. Evaluation Criteria

In assessing communities’ knowledge and understanding of biodiesel, we use methods such as

surveys, interviews, and field observations to collect from each select community information about:

production practices, wastewater treatment facilities, and management practices. For each of these 3

criteria, we assign weighting factors to various components to account for relative importance and use the

resulting total weighted score to rate the community. Our rating scales for all the criteria are shown below:

Evaluation and Suggestions for Improvement of

Energy Self-Sufficiency Community-Based Biodiesel Project

(Northern and Northeastern Regions)

Obtain list of select communities

1...................

2...................

3...................

4....................

.

.

168.................Reviewing current status

Monitering and evaluatuon (pre-execution) 1. Knowledge and understanding

2. Management manufacturing process

3. wastewater treatment

Development and execution

Post-execution

Summary and suggestions

Seminar

Failed




5.1 Production Practices

• Community with the total weighted score under this criterion of 90 or above and a raw score

for each and every component that is above the minimum requirement is rated excellent in

production.

• Community with the total weighted score under this criterion in the range of 80-89 and

biodiesel products which pass all the quality tests is rated good in production.

• Community with the total weighted score under this criterion in the range of 70-79 and

biodiesel products which pass all the quality tests is rated fair in production.

• Community with the total weighted score under this criterion of less than 70 or a biodiesel

product which fails any of the quality tests is rated needs improvement in production.

5.2 Wastewater Treatment Facilities

• Community with the total weighted score under this criterion of 10 is rated excellent in

wastewater treatment.

• Community with the total weighted score under this criterion of 9 is rated good in wastewater

treatment.

• Community with the total weighted score under this criterion of 8 is rated fair in wastewater

treatment.

• Community with the total weighted score under this criterion in the range of 0-7 is rated needs

improvement in wastewater treatment.

5.3 Management Practices

• Community with the total weighted score under this criterion of 81% or above is rated

excellent in management.

• Community with the total weighted score under this criterion in the range of 66-80% is rated

good in management.

• Community with the total weighted score under this criterion in the range of 55-65% is rated

fair in management.

• Community with the total weighted score under this criterion of 54% or below is rated needs

improvement in management.




6. Follow-Up, Monitoring, and Evaluation of Existing Biodiesel Projects in Select Communities

6.1 Current Production Practices

Various technologies used to produce biodiesel in existing biodiesel projects in 168 select

communities include:

1) The 60-liter BNB Inter Group Co., Ltd. biodiesel production machines – used in 115

communities (68.45%)

2) The Water Pacific Ltd., Part. biodiesel production machines – used in 7 communities (4.17%)

3) The Naval Dockyard Department biodiesel production machines – used in 39 communities

(23.21%)

4) The Chiang Mai University CMU-2 biodiesel production machines – used in 5 communities

(2.97%)

5) The 100-liter BNB Inter Group Co., Ltd. biodiesel production machines – used in 1 community

(0.60%)

6) The Prince of Songkla University biodiesel production machines – used in 1 community

(0.60%)

Surveys, interviews, and field observations about current production practices in these

communities reveal the following information:

The communities’ biodiesel facilities are staffed with knowledgeable people who can follow

production manuals. Most of these facilities only run twice a month. Production costs range between

6.00 to 35.67 Bahts/liter, with waste cooking oil feedstocks accounting for a large part of total costs due to

high competition between the communities and other middlemen in obtaining these feedstocks. As a

result, the communities may sometimes find it difficult to obtain needed feedstocks and are unable to

ensure their biodiesel facilities run smoothly.

The communities use waste cooking oils and animal fats as their primary biodiesel feedstocks,

purchasing these feedstocks on- or off-site from local restaurants, retailers, factories, and schools. The

oils and fats are filtered and preprocessed to remove water and contaminants.

In most of these communities, community committee members are involved in local biodiesel

production.

Production manuals are followed closely in all of the communities, although in some communities

changes such as feedstock washing, increasing reaction time, increasing the number of washes, and

allowing more glycerin separation time are made to production processes to improve efficiency. Most of

the biodiesel output is used to fuel single cylinder agricultural engines in the area, a practice which fulfils

energy self-sufficiency objective.




In analyzing consumer confidence in biodiesel, we look at real-world problems incurred by

biodiesel users and not quality assurance laboratory test results. According to our surveys, no observed

impacts on the performance of engines have been found and the demand for biodiesel is growing in the

area.

Regarding the quality of community-based biodiesel products (specifically, viscosity at 40oC, flash

point, water and sediment, acid number, and total glycerin), the laboratory test results from the Center of

Excellence-Oil Palm, Kasetsart University reveal the following:

• 58 out of 168 communities (34.52%) passed all the 5 quality control tests.

• 86 communities (51.91%) failed 1 test.

• 23 communities (13.69%) failed 2 tests.

• 1 community (0.60%), i.e. Ban Sak Santirat, Ngio subdistrict, Thoeng district, Chiang Rai,

failed 3 tests.

• The most failed test is acid number test with 94 communities (55.95%) failing the test, followed

by viscosity test with 30 communities (17.86%) failing the test and flash point test with 11

communities (6.55%) failing the test, respectively. None of the communities failed water and

sediment and total glycerin tests.

Regarding overall production practices and the rating of existing biodiesel production in 168 select

communities, we find that:

• There are 110 communities (65.48%) with substandard products.

• 6 communities (3.57%) rated “excellent” in production are:

1) Ban Pak Khlong, Nong Hua Chang subdistrict, Phon Charoen, Nong Khai

2) Sakon Nakhon Agricultural Energy Community Enterprise, Mueang district, Sakon Nakhon

3) Don Kaeo Subdistrict Administrative Organization, Don Kaeo subdistrict, Mae Rim district,

Chiang Mai

4) Lamphun Municipality, Nai Mueang subdistrict, Mueang district, Lamphun

5) Wiang Sa Agricultural Cooperative, Ai Na Lai subdistrict, Wiang Sa district, Nan

6) Umong Subdistrict Municipality, Mueang district, Lamphun

• 20 communities (11.90%) are rated “good” in production.

• 16 communities (9.52%) are rated “fair” in production.

• 126 communities (75.00%) are rated “needs improvement” in production, with 16 communities

(9.52%) producing quality products.

The 3 areas of current production which need the most improvement to meet the minimum

standards are product quality (110 communities/65.48%), production quantity (97 communities/57.74%),

and knowledge and understanding of production processes (71 communities/42.26%), respectively.




6.2 Existing Wastewater Treatment Facilities

There are 2 types of wastewater treatment technology used in existing community-based

biodiesel production:

1) Wastewater treatment system with 1 grease trap, 2 septic sumps, and 1constructed wetland.

Wastewater from biodiesel production enters the grease trap to let grease and oil separate out.

Wastewater then flows into the first and second septic sumps, respectively, for anaerobic digestion of

organic material; and is later discharged into the constructed wetland before being released into a

receiving stream. 73 out of 168 communities (43.45%) are currently using this first type of wastewater

treatment technology.

2) Wastewater treatment system with just 2 septic sumps. Wastewater is passed through the 2

septic sumps, respectively, to allow anaerobic digestion of organic material before being released into a

receiving stream. 95 out of 168 communities (56.55%) are currently using this second type of wastewater

treatment technology.

Most of the treatment facilities are found to be in workable condition though may not be well or

properly maintained. 2 communities (1.19%) with inoperable facilities are Nong Pa Khrung subdistrict,

Mueang district, Chiang Mai and Santi Suk Subdistrict Administrative Organization, Doi Lo district, Chiang

Mai.

Due to discontinuous biodiesel production in most of these communities, “completely treated”

water may not always be readily available for sampling and testing. In that case, we instead sample and

test “incompletely treated” water. In examining treated water quality, we rely on laboratory test results

from the Unit Research of Enzymes Technology and Waste Management, Nano and Bio Technology

Division, Kasetsart University Agricultural Agro-Industrial Product Improvement Institute; and check the

following 5 criteria: pH, BOD, COD, TSS, and oil and grease values.

Regarding overall wastewater treatment performance of existing community-based biodiesel

operations, we find that:

• 69 out of 168 communities (41.07%) are rated “excellent” in wastewater treatment.

• 49 out of 168 communities (29.17%) are rated “good” in wastewater treatment.

• 22 out of 168 communities (13.09%) are rated “fair” in wastewater treatment.

• 28 out of 168 communities (16.67%) are rated “needs improvement” in wastewater treatment.

Regarding various aspects of wastewater treatment and utilization, we find that 72 communities

(42.86%) are in need of improved service for the maintenance and repair of their wastewater treatment

facilities, 12 communities (7.14%) are in need of better wastewater treatment manuals, and 10

communities (5.95%) are in need of improved wastewater treatment operations.




6.3 Current Management Practices

Looking at organizational charts and personnel roles and responsibilities at existing community-

based biodiesel operations, we find that 164 communities (97.62%) have systematic organizational

structures and clearly-stated personnel roles and responsibilities. Most of the existing operations are

managed by an executive committee comprising community leader, subleader, treasurer, accountant,

biodiesel producers, and committee members. 4 communities (2.38%) are in process of setting up an

organizational structure and, as a result, are without explicit organizational chart; these communities are:

• Ban Na Chum Saeng, Na Chum Saeng subdistrict, Thung Fon district, Udon Thani

• Nong Pa Khrung subdistrict, Mueang district, Chiang Mai

• Bua Luang Witthayakhom School, Ban Bua subdistrict, Mueang district, Buri Ram

• Wat Phamuanrat, Cho Ho subdistrict, Mueang district, Nakhon Ratchasima

In addition, we find that 131 communities (77.98%) receive no financial support of any kind; and

37 communities (22.02%) get some funding from SML, municipality, subdistrict administrative organization,

village fund, local saving groups and cooperative stores, and/or the federal government. These biodiesel

operations have working capital in the range of 1,000-500,000 Bahts. No bookkeeping activities are found

at Bua Luang Witthayakhom School, Ban Bua subdistrict, Mueang district, Buri Ram due to the nonprofit

educational purposes of their biodiesel project.

Regarding business relationships, we find that 159 biodiesel operations (94.64%) have no

relationship with nearby communities; and 9 biodiesel operations (5.36%) have well-established

relationships with a number of biodiesel vendors, input/chemical suppliers, and employees in nearby

communities.

Regarding biodiesel promotion and public awareness, all 168 communities (100%) have programs

and activities of some sort to promote production and consumption of biodiesel. Most of the programs

and activities are in form of person-to-person marketing, public meetings, educational workshops,

pamphlets, leaflets, classroom instruction, community radio/public address, and learning centers.

However, due to limited funding and equipments, these programs and activities tend to not be sustainable.

Regarding overall management practices and the rating of existing biodiesel operations, we find that:

• No communities are rated “excellent” in management.

• 1 community (0.60%), i.e. Bakaam community, Khon Kaen, is rated “good” in management.

• 9 communities (5.36%) rated “fair” in management are:

1) Sakon Nakhon Agricultural Energy Community Enterprise, Mueang district, Sakon Nakhon

2) Mueang Ngai Municipality, Mueang Ngai subdistrict, Chiang Dao district, Chiang Mai

3) Lamphun Municipality, Nai Mueang subdistrict, Mueang district, Lamphun

4) Wiang Sa Agricultural Cooperative, Ai Na Lai subdistrict, Wiang Sa district, Nan

5) Umong Subdistrict Municipality, Mueang district, Lamphun




6) Demonstration Center, Uthai Thani

7) Na Wa Agricultural Cooperative, Na Wa district, Nakhon Phanom

8) Ban Bua Inpaeng Center, Kut Bak subdistrict, Kut Bak district, Sakon Nakhon

9) Phupan Royal Development Study Center, Mueang district, Sakon Nakhon

• 158 communities (94.05%) are rated “needs improvement” in management.

7. Execution of Plan for Improvement and Results

7.1 Improvement of Production Practices

Based on the information collected from our first site visit, we developed and executed at each

community plan for improvement of feedstock management, community participation, consumer

confidence in community-based biodiesel, and biodiesel quality which meets the Department of Energy

Business standards. Our recommendations include staffing of at least 2 people with biodiesel knowledge

at each and every production site. In addition, we also explained in details to each and every community

steps involved in producing community-based biodiesel (i.e. from cooling of the feedstock and water

removal, preparation of methanol and catalyst, transesterification process, glycerin separation, to product

purification and water removal) and uses of simple tools for field quality assurance and biodiesel analysis.

After execution of all these measures, a new batch of biodiesel samples was collected to check if quality

improvement was evident.

The post-execution test results show that all communities passed the 5 quality control tests

required by the Department of Energy Business. In addition, every aspect of production now meets the

minimum standards. The communities are also found to have better knowledge and understanding about

biodiesel production. Regarding the overall improvement of production practices, we find that (Figure 7.1-1):

• 65 out of 168 communities (38.69%) are rated “excellent” in making such improvement.

• 91 communities (54.17%) are rated “good” in making such improvement.

• 12 communities (7.14%) are rated “fair” in making such improvement.

Figure 7.1-1 Assessment of improvement of production practices in the pre- and post-execution periods

0

20

40

60

80

100

120

140

160

180

pass

qua

lity

cont

rol t

est

need

s

impr

ovem

ent

fair

good

exce

llent

58

126

16 20

6

168

012

91

65

num

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f com

mun

ities

pre - execution

post - execution




7.2 Improvement of Wastewater Treatment Practices

Our recommendations for improvement of wastewater treatment practices at existing community-

based biodiesel operations based on the information collected from our first site visit involve explaining of

the right methods to treat wastewater from biodiesel production to the communities (i.e. including system

maintenance and repair issues).

After execution of the above measures, results show improved service for maintenance and repair

of the communities’ wastewater treatment facilities; and the communities having better knowledge and

understanding about wastewater treatment process and utilization. Regarding the post-execution rating of

overall wastewater treatment performance of existing community-based biodiesel operations, we find that

(Figure 7.2-1):

• 148 out of 168 communities (88.10%) are rated “excellent” in wastewater treatment.

• 20 communities (11.90%) are rated “fair” in wastewater treatment.

• No communities are rated “good” or “needs improvement” in wastewater treatment.

Figure 7.2-1 Assessment of improvement of wastewater treatment practices

in the pre- and post-execution periods

7.3 Improvement of Management Practices

Our recommendations for improvement of management practices at existing community-based

biodiesel operations based on the information collected from our first site visit involve providing personnel

with an explicit organizational structure and clearly stating roles and responsibilities (i.e. feedstock

management, product sales, and public relations).

We find that after execution of the above measures:

• No communities are rated “excellent” in biodiesel operation management.

0

20

40

60

80

100

120

140

160

180

need

s

impr

ovem

ent

fair

good

exce

llent

2822

49

69

0

20

0

148

num

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f com

mun

ities

pre - execution

post - execution




• 94 communities (55.95%) are rated “good” in biodiesel operation management.

• 74 communities (44.45%) are rated “fair” in biodiesel operation management.

• No communities are rated “needs improvement” in biodiesel operation management.

In addition, we find that in all communities overall management practices have improved

statistically significantly in the post-execution period. Figure 7.3-1 and table 7.3 - 1 provide scores for

assessment of management practices in the pre- and post-execution periods.

Figure 7.3-1 Assessment of improvement of management practices in the pre- and post-execution periods

0

20

40

60

80

100

120

140

160

180

need

s

impr

ovem

ent

fair

good

exce

llent

158

91 00

74

94

0

num

ber o

f com

mun

ities

pre - execution

post - execution




Table 7.3-1 assessment of management practices in the pre- and post-execution periods




Table 7.3-1 (continued) assessment of management practices in the pre- and post-execution periods




Table 7.3-1 (continued) assessment of management practices in the pre- and post-execution periods

8. Business Partners and Networking

Among our recommendations for improvement of management efficiency, feedstock and chemical

procurement, and biodiesel production and sales at existing biodiesel operations is networking between

the closely located well-established and infant biodiesel communities which may help increase bargaining

power, technology and know-how, and business sustainability. Base on our survey of biodiesel status and

capacity of these communities, we divide the communities into 14 subgroups; and for each subgroup

select a group leader whose biodiesel performance must be rated “good” or better and whose location is

convenient and easily accessible to others within the subgroup. The 14 subgroups comprise the following:

Subgroup 1 consists of 17 communities in Udon Thani and Nong Bua Lamphu area, with Ban

Don Udom, Udon Thani as the group leader. Contact number are +66(0) 8 1544 1818 and +66(0) 8 1670

6057

Subgroup 2 consists of 9 communities in Nong Khai area, with Ban Chiang Ard Nuea, Nong Khai

as the group leader. Contact number are +66(0)8 6220 9323 and +66(0) 8 6220 9323

Subgroup 3 consists of 5 communities in Sakon Nakhon area, with Ban Wang Yang Saving

Group for Production Credits, Sakon Nakhon as the group leader. Contact number are +66(0) 8 3274

6343 and +66(0) 4216 1820

Subgroup 4 consists of 20 communities in Khon Kaen, Loei, Chaiyaphum, and Nakhon

Ratchasima area, with DEDE Technical Support Center 5, Khon Kaen as the group leader. Contact

number is +66(0) 4326 2207

Subgroup 5 consists of 6 communities in Maha Sarakham, Kalasin, and Roi Et area, with DEDE

Technical Support Center 3, Maha Sarakham as the group leader. Contact number is +66(0) 4345 8124

Subgroup 6 consists of 5 communities in Nakhon Phanom and Mukdahan area, with Nawa

Agricultural Cooperative, Nakhon Phanom as the group leader. Contact number is +66(0) 4259 7765




Subgroup 7 consists of 3 communities in Tak area, with Mae Sot Community Enterprise, Tak as

the group leader. Contact number are +66(0)8 7211 3659 and +66(0) 8 1475 6675

Subgroup 8 consists of 23 communities in Chiang Mai, Lamphun, and Lampang area, with DEDE

Technical Support Center 7, Chiang Mai as the group leader. Contact number are +66(0) 5335 3064 and

+66(0) 5349 9031

Subgroup 9 consists of 19 communities in Phayao, Phrae, Nan, and Chiang Rai, with Huai Kaeo

Community Learning Center, Phu Kamyao district, Phayao as the group leader.

Subgroup 10 consists of 10 communities in Chiang Rai and Nan area, with Ban San Sali Tractor

club, Chiang Rai as the group leader.

Subgroup 11 consists of 5 communities in Pichit area, with Ban Rai Chado, Pichit as the group

leader. Contact number are +66(0) 8 5448 5226 and +66(0) 8 9950 3950

Subgroup 12 consists of 16 communities in Uttaradit area, with Ban Wan Kaphi, Uttaradit as the

group leader. Contact number are +66(0) 8 1785 1550 and +66(0) 8 1040 9049

Subgroup 13 consists of 18 communities in Phitsanulok, Sukhothai, and Phetchabun area, with

DEDE Technical Support Center 10, Phitsanulok as the group leader. Contact number are +66(0) 5529

9016 and +66(0) 5529 9265

Subgroup 14 consists of 12 communities in Nakhon Sawan, Kumphaeng Phet, and Uthai Thani

area, with Tha Tako community, Nakhon Sawan as the group leader. Contact number is +66(0) 8505

4389

9. Public Seminar

After conducting a thorough Evaluation and Suggestions for Improvement of Energy Self-

Sufficiency Community-Based Biodiesel Project (Northern and Northeastern Regions), Frontier

Engineering Consultants Co., Ltd. has hosted a public seminar to present findings from the study which

may be of some interest to biodiesel communities and the public on March 28, 2012 at Udon Thani

Rajabhat University in Muang district, Udon Thani province. About 167 participants attended this seminar.

Key speakers included Mr.Thethawat Sinfhasiri, an teacher of Science Program in Environmental Science

of Udon Thani Rajabhat University. The participants were pleased with the organized activities and the

project should increase benefit, help raise standard of living in the biodiesel communities and reduce

environmental pollution, as well as project sustainability.

10. Suggestions

In accordance with the government’s attempt to promote biodiesel production and consumption

and energy security in the country, the Ministry of Energy via DEDE has been implementing “Energy Self-

Sufficiency Community-Based Biodiesel Project.” Based on information collected from 168 select biodiesel

communities under DEDE Energy Self-Sufficiency Community-Based Biodiesel Project in Northern and

Northeastern Thailand and community type, we propose the following suggestions for improvement of

such project:




1) Well-established and sustainable biodiesel communities should keep improving technologically,

i.e. continuously receiving technical support from DEDE and relevant parties and at the same time

providing support to other communities in need in terms of workshop and study center.

2) Infant biodiesel communities should be provided with needed assistance and support,

including:

• Assistance with feedstock and chemical procurement and sales of biodiesel products, e.g.

finding inexpensive feedstock and chemical sources and promising to buy excess biodiesel products from

the communities. As mentioned earlier, high competition for feedstocks between the communities and

other middlemen is among top causes of inefficient operation.

• Readily available biodiesel experts to consult with on management and production issues to

achieve industry standards.

• Key production equipment for feedstock pretreatment and biodiesel quality control to insure

consumer confidence.

• Development of promotion plan such as biodiesel seminar and status and capacity review to

promote networking among stakeholders.

• Organization of product contests to promote exchange of knowledge, networking, and

collaboration.

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