Pure Biodiesel to start production next year

Thailand’s Pure Biodiesel will start producing B100 fuel next August, targeting annual revenues of 2.5 billion baht (US$77.5 million) from supplying its parent company Rayong Purifier, as well as Shell, Caltex and Esso. The company is constructing a 400 million baht (US$12.4 million) biodiesel plant with an annual capacity of 100,000 tons or about 300,000 liters a day, Managing Director Suwinai Suwanhirunkul said. Financing is via a loan from Kasikornbank. “Once commercial operations start next year, we should reap 1.25 billion baht (US$38.7 million) in revenues and profits of 100 million baht (US$3.1 million),” he said. About 30% of the output of will be supplied to Rayong Purifier and the rest to the other major oil retailers. The plant will use as its raw material 100,000 tons of palm oil from four or five plantations, with which the company has contracts. Suwinai believes that biodiesel demand will rise, with the government mandate of a 2% blend starting next year. (August 25, 2007)