Mitr Phol diversifies with ethanol, dry yeast

Mitr Phol diversifies with ethanol, dry yeast

B4.4bn for renewable energy operations

Mitr Phol Group, the world’s fourth-largest sugar producer, is allocating 4.4 billion baht to expand its renewable energy business, with plans to produce more ethanol and dry yeast.

Pravit Prakitsri, managing director of the company's renewable energy business, said investment was expected to start in the second half of this year and run through the end of next year.

The investment project is in line with the group's capital expenditure, which is set at 18 billion baht a year for both domestic and international projects.

He said the first tranche of 1 billion baht is allocated for expanding ethanol production capacity of its sugar production facility in Kalasin province to 1.45 million litres a day from 1.2 million litres. Another 1.7 billion baht is for capacity expansion of a biomass project by another 45 megawatts in the same area. Commercial operation of that project is expected to start at the end of next year.

Some 1.3 billion baht is for a project to expand the capacity of a biomass power plant in Chaiyaphum province by another 26 MW, with operation possible this year.

He said the group was diversifying by investing in other kinds of renewable energy such as solar farms and solar rooftops at their Kalasin and Chaiyaphum sugar complexes for a combined price tag of 150 million baht. The solar panels are expected to start generating power late this year or early next.

The last tranche of 250 million baht is set for expansion of a production facility for dry yeast, which is a byproduct of ethanol production. The company plans to increase production of dry yeast to 9,000 tonnes.

Mr Pravit said yeast products would become a platform for the biochemical industry, so the group was focusing on them, allocating funds for research and development.

Dry yeast production in the first year will go for animal feedstuffs, with the company developing other products later.

"We've been working with our strategic partner to diversify into this sector in order to tap rising demand in the future," Mr Pravit said.

The company plans to use vinasse, known as brewing yeast, which is a byproduct of ethanol production, as a substance for feedstocks and food flavourings. It is also conducting a feasibility study on producing organic fertilisers from vinasse.

"We plan to add more value to our waste, using it as a resource for energy, fuel, wood replacement, animal food and cosmetics," Mr Pravit said.

He said Mitr Phol expected to have an additional sugar-cane plantation, which would increase sugar production by 10,000 tonnes in the coming year. This will provide additional bagasse and vinasse for biomass projects.

The company plans to raise sugar-crushing capacity for the 2015-16 crop to capitalise on increased cane production. In the current 2014-15 crop, its crushing capacity rose to nearly 106 million tonnes.

Mitr Phol has earmarked 3.5 billion baht to double production in Laos to 90,000 tonnes and expects to hit 120,000 tonnes in a few years.

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