Published on 09/12/2014
PTG, Tha Chang Industry plan B4.8bn palm oil plant PTG Energy Plc, a SET-listed oil retailer and wholesaler, has joined Tha Chang Industry Group (TCG), Thailand's leading palm oil producer, to develop the country's first integrated palm oil complex, worth 4.8 billion baht. The partners signed an agreement yesterday in Bangkok for a joint venture called PTG Green Complex Co. TCG owns 45%, PTG 35%, OPG Tech Co 10% and R&D Kasetpattana Co 10%. The new company will invest 4.8 billion baht in a project on 1,000 rai in Prachuap Khiri Khan's Bang Saphan Noi district. It will comprise palm oil crusher production of 200 tonnes per day, a biodiesel facility producing 450,000 litres per day and a six-megawatt power plant generated by biogas and biomass. TCG managing director Pongnarate Wanasuwankul said construction would begin early next year, with operations due to start in 2017. Each partner has a specialised area that can contribute to the venture. Farming technology to boost the yield of palm oil will be provided by R&D Kasetpattana, marketing strategy by OPG, logistics by PTG and palm oil production management by TCG. The project's financial adviser is Sage Capital Co. "We designed the project so that we can double capacity if necessary," Mr Pongnarate said. The venture plans to study the viability of oleochemical production as a way of generating the highest margin for producing palm oil. Pakjira Rachagitprakan, executive director of R&D Kasetpattana, said the project would plant a new breed of palm oil with a yield 20% higher than traditional breeds used in Thailand.
Pitak Rachagitprakan, PTG's president and executive director, said palm oil and related products from the new complex would be among the most efficient in terms of cost and production in Asean, as the venture combined professional and management expertise. The production process will be developed to shift production to different grades for different markets, he said. For example, palm oil for cooking and palm oil for vehicles require different levels of purity, depending on supply and demand at the time. Methyl ester produced at the factory is expected to feed production of biodiesel. Demand for biodiesel will rise in line with government plans to encourage the use of greener fuel. The aim is for biodiesel to make up 10-20% of fuel by 2021. In a related development, the Energy Ministry yesterday approved the Electricity Generating Authority of Thailand's power purchase agreements with 178 solar farm investors with combined capacity to 1,013 MW that have held licences since 2010. However, the main concern is the lack of an accessible power grid, which has caused a long delay for solar power investors. PTG shares closed yesterday on the SET at 6.15 baht, down five satang, in trade worth 31.7 million baht.