The province had a "large volume of oil-palm plantations and we have the potential to develop the oil-palm processing industry", he said.

"I have told both farmers and industrialists that the province will promote all business related to oil-palm farming, its extraction and distilling factories," Wijit said.

Surat Thani has the second largest plantation area of oil palm, after Krabi with 500,000 rai. Most plantations are in Phrasaeng, Chaiburi, Phanom and Phun Phin districts. The province also has 13 palm-oil refineries.

Jumphol Laykhosit, president of Surat's Chamber of Commerce, said the province should be promoted as a biodiesel centre since it has a deep-sea port and produces quality palm-oil products.

"We have plenty of free land that could be planted with oil palm. We also have enough oil storage facilities," said Lee Chongchai, manager of Thaksin Palm Company.

Thani Thaugsuban, president of the Surat Thani Provincial Administration Organisation (PAO), said he had approved the allocation of Bt25 million to construct a biodiesel plant, in cooperation with Prince of Songkhla University. Another Bt18 million was approved for operational costs, he said. It will open on December 5.