Rising demand for cheaper, alternative energy sources has prompted the Charoen Pokphand Group to grow thousands of hybrid oil palms this year.

The hybrid palm is a cross between an indigenous tree and one grown commonly in Malaysia. The result, known as CP golden tenera, produces more than 30 per cent more oil.

CP will be introducing the hybrid to plantations in the South and East of the country.

CP crop-integration president Montri Congtrakultien said the hybrid was a high-yield palm producing an average of 3.5 tonnes to four tonnes of fruit per rai compared with 2.7 tonnes from the indigenous palm. Maximum production can be five tonnes a rai, he said.

Each sapling costs Bt80, compared with Bt60 to Bt70 for indigenous palms. They will be available in March or April, but the company will be hard pressed to meet demand with growers having ordered more than 100,000 already.

Montri added that farmers were encouraged by price increases for palm oil. Many tangerine-growers in the Rangsit, Pathum Thani area are switching to oil palms.

The company expects oil produced from golden-tenera crops to exceed 300,000 tonnes per year.

"The company's experience in developing oil palms over more than 30 years allows it to accumulate knowledge and foresee the business potential of plants," Montri said.

CP has conducted trials at its experimental nursery in Krabi.

These suggest growers can expect a yield of Bt6,400 a rai from the hybrid, compared with Bt3,063 from domestic species.

CP is integrating its palm business by building a palm-oil refinery and biodiesel plant.

These will be in the South, where raw oil is plentiful. The factories will cost between Bt50 million and Bt60 million. Refined capacity is between 50 tonnes and 60 tonnes a day.

The Energy Ministry wants to boost production of alternative fuels to 17 million litres a day by 2011. Of that, four million litres will be biodiesel.

The ministry is promoting the consumption of alternative fuels, including natural gas, gasohol and biodiesel.

Achara Pongvutitham

The Nation