Nonthaburi – RATCH Group Public Company Limited announced its investment in the wood pellet project in Lao PDR, with production capacity of 60,000 tons per year. The joint-venture project is under collaboration between RATCH-Lao Service Company Limited, its wholly-owned subsidiary in Lao PDR, Buriram Green Energy Company Limited and Siphandone Bolaven Development Company Limited. On September 21, 2020, the three parties announced the establishment of SIPHANDONE RATCH-LAO Company Limited, as a project operating company with registered capital of Kip500-million or Baht 1.7 million. The joint company is held 25% stake by RATCH-LAO Service Company Limited, while Buriram Green Energy Company Limited and Siphandone Bolaven Development Company Limited hold 65% and 10% respectively.
Mr. Kijja Sripatthangkura, CEO of RATCH Group Public Company Limited said that the Company has started the feasibility study and developed this project with its partners since 2018 due to the business growth opportunity driven by increasing renewable energy development aiming to reduce fossil fuel consumption and greenhouse gases caused of climate change. Japan and South Korea markets are targeted as wood pellet demand tends to increase in respond to the government’s promotion policy for biomass power plants. Currently, the Company is under process of sales contract negotiation and applying for various licenses. It expects that the wood pellet plant will start construction in 2021 and commercial production and distribution will commence by Quarter 1 of 2022.
“The wood pellets demand in overseas is obviously increasing mostly in industrial sectors and biomass-fired power plants because it contains low moisture, high heating rate and easy-to- transport and stock as a raw material. Within 20,000-rai area in Champasak Province, the project will plant fast growing crops, sugarcane, and other suitable plants. The two partners have expertise and extensive experience in agricultural sector. The Company aims to export the biomass fuel to industrial customers in Japan and South Korea under the long-term contracts and currently it is under negotiation with prospective customers and expected to conclude the deals soon,” added Mr. Kijja.