Bangchak Petroleum plans to build biodiesel plant

Bangchak Petroleum Plc plans to invest between 900 million and one billion baht (US$27.9-31 million) to build a biodiesel plant by the end of this year, according to Patiparn Sukorndhaman, Bangchak’s senior executive vice-president. The new plant, with a daily production capacity of 300,000 liters, is scheduled to be completed within 20-23 months. Patiparn said the plant would be located near Bangchak’s existing oil storage facilities in Bang Pa-in, Ayutthaya, to save on logistics cost. Of the total investment, up to 300 million baht (US$9.3 million) would come from the company’s capital and the rest from loans, which would lift its debt-to-equity ratio to two times from 0.6 currently. Bangchak is now the leader in the biodiesel market, with a market share of 78.6% or 30 million liters per month, followed by PTT Plc with 21.4%. Patiparn said the company’s biodiesel output has risen by 47% to 28.7 million liters per month over the past six months. (August 28, 2007)