Rayong Purifier secures loan for biodiesel project

Thailand’s Rayong Purifier (RPC) has secured a seven-year 400 million baht (US$12.4 million) loan from Kasikornbank to finance its biodiesel project, which will be handled by its subsidiary Pure Biodiesel (PBC). Suwinai Suwanhirunkul, managing director of PBC, says that initially, 30% of the B100 biodiesel that will be produced will be sold to RPC while the remaining 70% will be sold to other domestic oil refiners. The plant plans to produce 100,000 tons per annum of B100 from palm oil. The company, which expects construction of the plant to be completed by August 2008, eventually plans to double capacity to 200,000 tons. Once the expansion phase is complete, PBC will begin exporting, especially to Europe. PBC expects to earn an annual profit of 195 million baht (US$6.04 million) from the biodiesel project and aims to break even by 2012. In June, the Thai government announced that the use of B2 would become mandatory for all diesel vehicles from April 1, 2008. Eventually, B2 will be replaced by a higher biodiesel blend, B5. (August 24, 2007)