Refiners buy into Ubon ethanol plant

Thai oil refiners Bangchak Petroleum Plc (BCP) and Thaioil Plc have teamed up to pay a combined 1.5 billion baht (US$49.3 million) for stakes in Thailand’s Ubon Ratchathani ethanol production plant. BCP’s board agreed a week ago to acquire 21.28% ownership in Ubon Bio Ethanol Co. (UBE) for 750 million baht (US$24.6 million), as part of their 7-billion-baht (US$230.1 million) renewable energy strategy. The acquisition is part of the same deal in which Thaioil will also spend 750 million baht (US$24.6 million) for another 21.28% stake. UBE is building a plant to manufacture ethanol from fresh cassava roots and chips, with a daily capacity of 400,000 liters. Most of the production will be exported to China once operation commences in June 2012. (February 22, 2011)