Laos is making significant progress in its experiments to produce bio-diesel from soybean oil and used palm oil for use in vehicles in place of regular diesel.

The experiment began five months ago conducted by the Sustainable Tree Plantation and Livestock Promotion Association.

The bio-diesel is made from used palm oil and fresh processed soybean oil with organic additives made from crops in Laos...more

To prove the success of the experiment, five vehicles were driven for almost 200km using the bio-diesel yesterday.

“The bus runs so smoothly I can't tell the difference between the bio-diesel in the tank now and the diesel I buy at the petrol station, even when the bus is going uphill,” said a bus driver, Amphone Sisoutham, who has worked in the job for 25 years.

He also said the exhaust fumes had a pleasant smell, a favourable comparison to the bad odours given off by diesel.

Another point in its favour, he said, was the fact that the engine did not overheat but maintained the same temperature as when using ordinary diesel.

“Yesterday, when I was informed that officials would drain my bus's tank of diesel, I was worried and called my director. I felt quite strongly we should not put bio-diesel in the tank, but I was surprised when the engine started right away,” said Mr Sisoutham.

He said the engine would have showed signs of trouble within 6 kilometres if the new fuel was causing any problems.

According to the association's electro-mechanical engineer, Mr Douglas A. Handisides, the bio-diesel can be used on its own or mixed with regular diesel.

He said it was not necessary to make any adjustments to a vehicle in order to use bio-diesel in the engine.

Importantly, there have been no reports indicating that any country owns a copyright to produce bio-diesel made from soybean oil and used palm oil, he added.

The president of the association, Mr Houmpheng Manipoun, said the experiment had not given any indication of the production costs, the price of the product or how many kilogrammes of soybeans were needed to produce one litre of bio-diesel.

He said the association would have to calculate this in the future to get more details before proposing any copyright for the product.

The experiment is in line with the Prime Ministerial decree on crop planting promotion to produce a source of energy, contributing to poverty alleviation.

The cost of the bio-diesel is expected to be lower than regular diesel because after oil is extracted from the soybeans, the residue can be sold as food.

Mr Houmpheng said that if the experiment proves production costs are less than the cost of diesel, Laos has a strong incentive to grow soybeans in large quantity

Vientienetime

Salamander Energy negotiating for license in Laos

A newly listed company on the London Stock Exchange is in final negotiations for what will be the first oil and gas license in Laos since 1998. Salamander Energy says it has received approval in principle from the Laotian government for a 31,000 sq km Production Sharing Contract (PSC) covering the Vientiane and Savannakhet blocks. If awarded, a 2D seismic survey is planned over both blocks in 2007 with possible exploration drilling to take place in 2008... more info

The majority of the Vientiane block was previously licensed by Monument Oil & Gas under the 37,250 sq km SDC Contract Area. Monument drilled Laos's only exploration well on the acreage in 1998, Naxay 1ST which was plugged and abandoned at a depth of 650m without having reached its primary objective. The last geophysical activity in the country was in 1996 when Monument acquired a 75km dynamite/vibroseis survey in the Vientiane region. UK-based Salamander focuses its operations in South East Asia, primarily Indonesia and Thailand. The company owns 27.2% of APICO, which in turn has a 35% interest in Phu Horm field, an onshore Thai field recently brought onstream by Hess. Salamander's working interest production rate has risen to about 6,600 boe/d in two years time. The company employs about two dozen and has offices in Singapore, Jakarta and London.

SOurce: energy.ihs.com