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Published on March 15, 2008

Pure Biodiesel, a subsidiary of listed Rayong Purifier (RPC), is scheduled to commence the operation of its biodiesel plant in July, targeting revenue of Bt2.5 billion in the first operational year.

The company invested Bt400 million to build the biodiesel plant with a daily production capacity of 300,000 litres using crude palm oil as the raw material.

CEO Supapong Krishnakan said the plant would run at half capacity this year and reach 75-per-cent capacity next year.

"We project to gain profit of Bt20 million from our biodiesel business in the second half of this year and rise to more than Bt100 million in 2009," he said.

Thirty per cent of the output will go towards RPC's refinery and the remaining 70 per

cent will supply other local refineries.

Meanwhile, RPC expects to sign a contract to trade oil from Russia, North America and the Middle East in the next two months. However, Surapong declined to disclose more details.

Furthermore, the company will import more condensate to support more refining capacity from its current 17,000 barrels per day to 30,000 barrels. Currently it is buying condensate residual, a by-product, from PTT Aromatics and Refining.

"We will try to maximise our refining capacity before spending around Bt3 billion to set up a splitter in order to increase

more value-added products," he said.

The company is also looking for an opportunity to expand its business in Vietnam after it

earlier failed in operating an oil refinery there due to the government's complicated limitations.

However, Vietnam still has interesting potential because of insufficient oil refineries. However, Surapong declined to reveal more details as the company is seeking a joint-venture partner.

RPC posted revenue of Bt20.759 billion in 2007, an increase of 6 per cent from the previous year thanks to more oil refining production and the rise of oil prices. Net profit rose from Bt183 million in 2006 to Bt401 million last year.

Chalida Ekvitthayavechnukul

The Nation