Thailand will start developing biofuel for jets to meet demand from 2012, when European aviation regulations calling for green fuel in airplanes take effect, says the Alternative Energy Development and Efficiency Department.

"That means Thailand's international airports should have airplane-compatible biofuel available to serve European airlines," said Twarath Sutabutr, the deputy director-general.

"We want to become the aviation hub for Southeast Asia, and that means we'll have to have all the essential supplies to serve their requirements. Jet biofuel will absolutely be needed, so we should start developing it now."

Average annual jet fuel demand in Thailand is about 4 billion litres. To meet the demand for biofuel to mix in with jet fuel, the country should expand the area of palm oil plantations or turn to other fuel crops such as algae or sweet sorghum.

So far, the output of crude palm oil for biodiesel production is balanced and remains sufficient for the government's policy of replacing B3, a mix of 3% biofuel and high-speed diesel, with the higher biofuel content B5 next January.

"If we also need to serve the aviation industry, then the crude palm oil we have now won't be enough, so we're considering what we can prepare for the market change," said Dr Twarath.

He said that at present there were two organisations spearheading fuel crop development - the department itself and the energy conglomerate PTT Group.

The department has provided financial support to universities for research into making biofuel from algae and sweet sorghum. PTT has its own research and development department and a laboratory for aviation biofuel.

Biofuel from algae may be the best choice since suitable areas for palm tree plantation are limited.

"Instead of trying to get more palm oil, the country should throw its efforts into research into new fuel crops," said Dr Twarath.

He said in the short term, the government would expand oil palm plantations and other biofuel sources in areas of low-yield crops like longans and lychees.

"Since we see a surplus of those fruits each year along with very low prices, we may be better off turning them into something more valuable instead of making them suffer the same problems each year," added Dr Twarath.