28/09/2012 (The Nation) - Bangchak Petroleum plans to build a second biodiesel plant next year with an investment of Bt800 million, adding 300,000 litres of biodiesel annually to the current total of 660,000 litres.

President Anusorn Sangnimnuan said yesterday that the second biodiesel plant would also be located in the biodiesel production centre at Bang Pa-in. Construction on the plant, with a capacity of 300,000 litres a year, is expected to start next year, to be completed by the middle of 2014. In addition, he said, the company would invest in a palm-oil factory in either Rangsit or Saraburi, depending on which area is more conducive to growing oil palms, on up to 60,000 rai of land. The company would also increase palm-oil supply to match rising demand for biodiesel fuel sold via Bangchak's petrol stations. Palm oil is used as raw material for biodiesel production.

The project for educating farmers and development of oil-palm plantation in Rangsit will be a one-stop education centre for farmers, Anusorn said. The company has also joined hands with relevant state agencies to trial growing oil-palm trees over a 1,200-rai area to use the output for producing biodiesel. Oil-palm plantation will give return on investment of Bt8,000 per rai or Bt4-Bt6 per kilogram.

According to the national palm plantation plan (2013-2017), the area for growing oil palms will be widened to 7 million rai from the current 5 million. About 3 million rai will produce oil palms for consumption and the rest for biodiesel production and industrial factories.

"The value of palm oil market is expected to reach Bt100,000 in the next 10 years from Bt60-70 billion currently, ranking the largest forth contribution to the country followed by rice, para rubber and sugar," said Samai Jai-in, director of the national palm policy committee.

"Bangchak has strong confidence that its net profit this year will reach Bt7 billion as expected. Next year, the company expects its net profit will be Bt9 billion, thanks to revenue of Bt1.5 billion from solar cell plants," said Anusorn.