After launching the "polymer energy" project in Samut Prakan, Energy Minister Piyasvasti Amranand said that of the total investment, Bt35 million would come from Samut Prakan provincial authorities, Bt15 million from the Energy Conservation Fund and Bt15 million from Single Point Energy Environment, which imports the technology needed for the scheme.

"We expect the output will come on to the market by the end of this year," Piyasvasti said, adding that the ministry is looking to promote similar projects in Prachuap Khiri Khan and Rayong provinces.

Samut Prakan Governor Anuwat Methwibunwut said Bangchak Petroleum had been contracted to buy the crude oil.

"From our estimate, we can produce 28 barrels a day at a cost of Bt11 a litre. Then we can sell the oil to Bangchak at Bt15 a litre," he said.

Samut Prakan was picked for the pilot due to the availability of plastic waste. Waste will be smelted and the molecules realigned to be close to those of crude oil. The technology is widely used in Europe.

Thailand handles 16 million tonnes of waste each year, of which 7.2 million tonnes are plastic. If all the plastic waste could be turned into crude oil, imports of crude could be reduced by 5-7 per cent.