The SET-listed oil refiner Rayong Purifier Plc expects its new biodiesel plant will raise its total revenue by 10% to 24 billion baht, said managing director Kanokporn Jarukulvanich. Its 500-million-baht plant in Map Ta Phut can produce 300,000 litres daily and started production in January.
Initially, its capacity utilisation was 33%. It has planned to step up utilisation gradually and is scheduled to be running at 100% at the end of this year.
Of the daily output, 40,000 litres of biodiesel are for the production of B5, a 5% biofuel mixture with 95% diesel.
RPC introduced B5 in petrol stations two years ago and this year it is using an aggressive 30-million-baht campaign to promote its green fuel. Its B5 sales last year rose 14% to 20 million litres and it expects sales of 100 million litres this year because of the promotion.
''We will gradually phase out pure high-speed diesel from our 75 service stations nationwide and replace it with diesel B5,'' Ms Kanokporn said.
Although total oil demand this year will likely contract by one percentage point as a result of the economic situation, because B5 is two baht per litre cheaper than high-speed diesel it should be in high demand.
She said the company's biodiesel plant had a low construction cost but high quality compared to other new plants. It makes double the glycerin, a high-value byproduct, of its peers.
''Our production design allows us to use 100% of materials. There is no sludge waste from production as we selected the best technology from Desmit of Italy, a global leader in the oleo-chemical industry,'' she said.
''There was a warm response from B100 buyers because it is a quality item.''
However, RPC has cut back its service-station expansion plan from 25 to five stations this year on top of its existing 75 due to economic circumstances.
RPC hopes the government will keep its commitment to replace high-speed diesel with B5 by 2011, saying palm-oil output from the government's plantation expansion policy since 2006 is almost ready to enter into production.
Shares of RPC closed yesterday on the Stock Exchange of Thailand at 1.92 baht, down one satang, in trade worth 1,000 baht.
http://www.bangkokpost.com/business/economics/12836/rpc-to-use-b5-fuel-for-10-growth
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