Thai firm announces plans to expand biodiesel production capacity

Global Green Chemicals, a Thai oleochemicals company, has announced plans to increase its biodiesel production capacity by setting up a second methyl-ester plant in Chon Buri province, located in the southeast of Bangkok

GCC plans to increase biodiesel output, which uses oil palm as a raw material, to accommodate increasing demands for biofuel, including state-of-the-art technology for the production of specialised oleochemicals. 

Jirawat Nooritanon, managing director of GGC, said: "For almost a decade, we have succeeded in developing and pioneering the biofuel and green-chemical industries in Thailand. Now GGC is the leading biodiesel producer, with 26-per-cent market share and a satisfactory annual growth rate.”

The second biodiesel plant, with capacity of 200,000 tonnes per year, is expected to start operating in 2018. This will bring GGC's total production capacity, when combined with the first plant, to 500,000 tonnes per year.

With the new technology proposed for the second plant in Chon Buri's Nong Yai district, GGC estimates that will be able to reduce production costs and increase its competitiveness.

Apart from its leading position in the biodiesel market, GGC is also the only fatty-alcohol producer in Thailand. 

The biodiesel business is operated under the trademark ThaiOL by Thai Fatty Alcohol Co, a subsidiary of GGC. Fatty alcohol is a basic oleochemical used as the substrate for production of detergents, dishwashing liquid, shampoo, and general household cleaning products. 

At present, the oleochemical industry in Southeast Asia, China and India is growing by 6% a year. 

There is also an increased demand for oleochemical products with specific properties, the company said in a statement.

Advanced technology

GGC conducts extensive studies on the market, to understand how the use of advanced technology can be utilised to decide on the types of oleochemicals to be produced. 

The company stated that this will help reduce reliance on imported raw materials and fulfil the demands for environmentally-friendly products.

The group is also looking into possibilities of expanding its production base from oil palm to include sugar cane through investment in a bio-complex to enter the bioplastic and biochemical business.

Nooritanon said: “The company is studying the possibilities of establishing a bio-complex that will have an integrated sugar-cane-crushing mill, ethanol plant, biomass power plant and other bio-based utility infrastructure, and bioplastics and biochemicals production plant.”

He said the expansion of its biofuel production will help to create jobs for Thai people “both in the industrial and the agricultural sectors, leading to sustainable growth of the nation's economy”.