Capital Engineering Network is joining with a Chinese firm to set up a Bt600million biomass power plant rated at 9.9 megawatts.
"Renewable energy is a business that gives a satisfactory rate of return and can strengthen the company's revenue for sustainable growth," CEO Wutichai Leenabanchong said yesterday.
CEN will be in charge of construction and plant location, because it owns the land, while aluminiumextrusion manufacturer Norinco International will source the equipment and technology.
The Thai firm is now submitting the documents for the construction permit. The project will be financed with capital and loans.
"The company expects construction to take two years, and the project should break even within three to five years," he said.
CEN agreed to the project after seeing repeated consumption peaks for electricity. The plant's output will be sold to the Provincial Electricity Authority.
South Korean reduced derivedfuel technology is being considered for the plant.
After this first team effort, CEN and the Chinese partner may work together to develop other energy projects, such as windturbine or solarcell power plants.
"CEN's subsidiary is conducting a feasibility study on renewable energy, as well as other businesses here and in neighbouring countries like Laos, Cambodia, Burma and Vietnam," Wutichai said.
The company is confident its revenue will grow 15 per cent from last year's Bt1.6 billion.
CEN closed yesterday up 0.75 per cent at Bt2.68.