National Power Supply Plc (NPS) expects its two biofuel power plants would contribute an additional 5.85 billion baht per year to the company's revenue from 2016 onwards.
Also known as Double A Power, NPS is building two biofuel power plants with a combined capacity of 223 megawatts at 304 Industrial Park in Prachin Buri.
The first plant, with a capacity of 125 megawatts, is expected to be operational in the fourth quarter of next year.
Its customers will include factories in the industrial park and companies under the Double A group.
Apichai Sawpitiporn, NPS senior executive vice-president, said the plant will generate revenue of around 3 billion baht in 2015 and the figure will increase to 4 billion baht in 2016 once it reaches the maximum capacity.
The plant will use eucalyptus trees of a variety they developed at the rate of 950,000 tonnes per year.
Called "energy trees", the variety provides high heat value and takes two to three years before it can be harvested.
The company purchases them from farmers in Prachin Buri and neighbouring provinces, providing nearby communities with an income of 1.24 billion baht per year, said Mr Apichai.
He added that NPS might use other sources in the future such as Napier grass.
The second plant of 98 MW has already started operations in July last year, selling steam to power plants within the group, as well as to Double A for its pulp and paper production.
It has a production capacity in the first phase of 300 tonnes of steam per hour with revenue of 789 million baht last year.
He said NPS targets to gain an additional 1.85 billion baht from the plant once its second phase is operational in early 2015, with tree barks and husk used as raw material to produce electricity.
Starting in 2016, the revenue of NPS is expected to increase by 5.85 billion baht a year, he said, adding that the company's revenue last year reached 12 billion baht.
NPS currently operates eight power plants in 304 Industrial Park and another two in Chachoengsao, with a combined capacity of 493 MW.
In the first three months, the revenue totalled 3.01 billion baht, a 14% increase from 2.64 billion a year earlier. Net profit surged 94% year-on-year to 371 million baht.