Thailand-based palm oil crushing company Vichitbhan Group is investing almost THB2 billion (€44.3 million) to set up biogas and biomass energy businesses.
Vichitbhan Group runs separate palm oil crushing mills under its Vichitbhan Palm Oil and Vichitbhan Plantation companies.
Krisada Chavananand, MD of Vichitbhan Palm Oil, says the investment is part of a five-year business plan focusing on the palm oil and energy businesses, ending in 2011.
Of the total investment, Bt460 million will be spent on renovation and expansion of facilities at Vichitbhan Palm Oil, which will install modern crushing processing lines.
It will invest Bt300 million to set up the biogas power plant and another Bt1 billion in the biomass plant.
Another Bt160 million will be spent to set up a biogas power plant at Vichitbhan Plantation’s manufacturing base.
The plantation was established in 2005, as the group’s second crushing mill, with an investment of Bt500 million.
The strategy is designed to gain maximum benefit from such palm oil by-products as vapour, fibres, shells and kernels. The income generated will help the millers offset the risks posed by traditionally volatile palm oil prices.
Krisada said using the by-products of palm oil crushing to produce power not only reduces production costs, but also turns waste into a value added product.
The group has an average combined crude palm oil production of 250,000 tonnes a year. Of that, 60-70% is exported, with the remainder bound for the local market.
