Ready for Specialty Oleochemicals and driving sustainable economic growth in line with the New S-curve policy
1 August 2016, Bangkok
– Global Green Chemicals Public
Company Limited or GGC, a subsidiary of PTT Global Chemical Public
Company Limited group of companies, announced its plan today, to
increase production capacity of biodiesel. 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 specialty oleochemicals. GGC is also
looking into the possibility of extending its production to include
sugarcane
as
raw materials, in response to the government's policy in promoting the
cluster development of future industries (New S-Curve).
With
a vision to become a leading green chemical producer, creating
sustainable value for society, especially in the alternative
energy industry, GGC is ready to handle the trend of increasing demands
for biofuel by opening a second methyl ester, or biodiesel (B100) plant
in Chonburi, in order to increase its production capacity. The
increased demand for production is a direct result
of the government's policy promoting the use of alternative energy.
Mr.
Jirawat Nooritanon, Managing Director of GGC Plc said "For almost a
decade, we have succeeded in developing and pioneering
the biofuel and green chemical industry in Thailand. Now, GGC is the
leading biodiesel producer, with 26 percent market share and a
satisfactory annual growth rate. In response to the government's
Alternative Energy Development Plan (AEDP 2015), to increase
the use of alternative energy, and build market demand for biofuel, GGC
plans to increase its production capacity by opening its second
biodiesel plant in Nong Yai, Chonburi on a 30-rai plot of land. This
commitment is part of a response to the Eastern Economic
Corridor Development Project in three provinces, which aims to develop a
leading economic zone in ASEAN and to promote 10 target industries to
drive forward the economy, including the bioeconomy."
The
second biodiesel plant, with the capacity of 200,000 tons per year, is
expected to start operating in 2018. This will put GGC's production
capacity, when combined with the first plant, at 500,000
tons per year. With this new proposed technology, GGC estimates that it
is expected to reduce production costs in the new factory, and increase
the products market competitiveness.
Apart
from its leading position in the biodiesel market, GGC is also the only
fatty alcohol producer in Thailand. The biodiesel
production business is operated under the trademark THAIOL by Thai
Fatty Alcohol Co., Ltd., 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 has grown by 6 percent per year. There is also
increased demand for oleochemical products with specific properties. GGC
conducts extensive studies on the market, to understand
how the use of advanced technology can be utilized, to decide on the
type of specialty oleochemicals to be produced. This will help reduce
reliance on imported raw material and fulfill the demands for
environmentally-friendly products.
The company is also looking into possibilities of expanding its production base from oil palm to include sugarcane through
investment in a biocomplex to enter the bioplastic and biochemical business.
"The Company is studying the possibilities of establishing a
biocomplex which will have
an integrated sugarcane
crushing mill, ethanol plant, biomass power plant
and other bio-based utility infrastructure,
and bioplastics
and biochemicals production plant. We believe that a suitable approach
for a sustainable business operation in
the long run is to invest in production facilities, which integrate the
production of raw materials and downstream products as well as the
generation of public utilities. This approach will create joint benefits
along the supply chain between the producers
and the agricultural industry, based on the principles of raw material
and product reciprocity. The fact that the factory is close to the raw
material source helps save transportation costs. The biocomplex business
plans are currently under review. The development
of our biocomplex will focus on development of biochemical and
bioplastics production facilities" said Mr. Nooritanon.
Establishment
of a plant in that form will contribute to lower investment and
production costs when compared with establishing general factories in
industrial estates. To develop a biocomplex that is
sustainable and competitive, the factory will produce both main
products and by-products, namely biofuel, bioplastic, biochemical, and
biomass power. The investment in developing building the biocomplex is
in response to the government's Bioeconomy policy
by stimulating more investment in terms of biochemical in the country.
Apart
from extending production capacity and developing the business, GGC has
also secured oil palm sources by supporting and encouraging farmers in
the upper north east, namely in Sakon Nakhon, Bueng
Kan, and Nakhon Phanom, to take up oil palm cultivation with
sustainable production control in accordance with the Roundtable on
Sustainable Palm Oil (RSPO). This promotes the concept of sustainable
business from upstream to downstream. It also adds value
to the raw materials that are in higher demand globally.
"With
various strategies and over 10 years of experience in the biofuel and
green chemical business, today, GGC is ready to be a one of the
pioneering businesses responding to the New S-Curve This will
create jobs for Thai people, both in the industrial and the
agricultural sectors, leading to sustainable growth of the nation's
economy," Mr. Nooritanon concluded.
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About GGC:
Global
Green Chemicals Public Company Limited or GGC, former Thai
Oleochemicals Company Limited, is the pioneer oleochemicals producers in
Thailand under PTTGC group. Since established,
we have been driven by strong vision to be one of the leading companies
in global oleochemicals market, together with promoting Thailand’s
competitiveness in related downstream industry in renewable energy,
health & personal care products and surfactants,
and thereby sustaining the agricultural sector and natural oil industry
of the country.
