TNA. PTT Public Company, Thailand’s state-owned oil firm, and Charoen Pokphand Group (CP), a leading agro-industrial and foods conglomerate, have signed an initial agreement for the development, production and promotion of palm-oil biodiesel.
The move is part of the Energy Ministry’s plan to promote the use of alternative energy, according to Anon Sirisaengtaksin, PTT Senior Executive Vice President in charge of Corporate Strategy and Development. PTT is in the process of holding talks with the Treasury Department to lease CP’s 60,000 rai (23,722 acres) of unused land in the South to grow palm trees.
CP will be responsible for the growing process and encouraging farmers to grow palm trees. PTT and CP would jointly set up biodiesl production plants with a capacity of 100,000 liters per day (26,420 gallons US per day or 9.6 million gallons US per year).
The entire project will cost around Bt1-2 billion (US$26.3-52.5 million). The price and volume of palm oil will be closely monitored to prevent shortage in the future, according to PTT.