Double A Power Plc has allocated 11 billion baht to expand its power and renewable energy operations.
The company is a subsidiary of Double A Group, Thailand's second-largest pulp and paper maker.
Senior executive vice-president Apichai Sawpitiporn said 10 billion baht would be used to develop two biomass power plants in Prachin Buri province, with power-generating capacity of 98 and 120 megawatts.
The two biomass power plants, whose feedstock is waste from the paper production process, are expected to start up late this year, he said.
Parent Double A Group was first in the country to operate biomass power plant pilot projects.
It now has nine biomass and small coal-fired facilities for combined capacity of 500 MW.
After the expansion is complete, the group's combined power generating capacity will be 700 MW, Mr Apichai said.
However, its 540-MW coal-fired facility in Chachoengsao province remains delayed as the company still awaits the results of complicated environmental and health impact assessments.
The group won the bidding for the project as an independent power producer in 2007.
Mr Apichai said the other 1 billion baht earmarked would be used for diversifying into biofuels and making trucks with dual-fuel compatibility.
Yesterday, Double A Power introduced modified trucks called "flexible efficiency 85" (FE85) vehicles that are compatible with both compressed natural gas (CNG) and E85 gasohol.
Mr Apichai said the company started test trials two years ago on 50 FE85 trucks and would test another 1,000 this year.
Results showed the FE85 trucks consumed four to five baht of fuel per kilometre, well below the normal eight baht per km for diesel trucks.
Mr Apichai said the FE85 trucks could cut logistics costs by 30-40%.
Time-consuming queuing for CNG at filling stations would be scaled back as well since the trucks can just switch to E85.
The company has already joined with a local Chinese automotive company to supply parts for the FE85 trucks.
They will start being sold to transport and logistics operators nationwide in the near future.
Of the 1 billion baht, Double A Power has set aside 600 million to build a factory to assemble FE85 trucks.
The other 400 million baht will be used to open E85 filling stations, with five expected this year and 15 more next year.
Double A also plans to expand the cassava-based ethanol business it started in 2010.
Its wholly owned Double A Ethanol Co now has daily production capacity of 500,000 litres.
The group also announced plans for new industrial estates in the East and Northeast to develop the energy sector as a core business amid rising demand.
Deputy energy permanent secretary Twarath Sutabutr has said the government will continue to provide full support to locally developed energy technology.