SET-listed Energy Absolute (EA) plans to begin production of phase change materials (PCMs) from biofuels in the second quarter, aiming to secure roughly 800 million baht in revenue this year through this segment.
PCM are latent heat storage substances, used for building materials, garments, packaging and logistics. These substances can be transformed into both solid and liquid, depending on temperature levels.
EA has situated a PCM manufacturing plant in Rayong with an initial production capacity of 65 tonnes per day.
Amorn Sapthaweekul, deputy chief executive, said the PCM capacity is expected to reach 130 tonnes per day later this year, with EA shipping exports to Germany and Japan.
Investment in this manufacturing site was worth 2 billion baht.
EA said the PCM manufacturing facility is the world's first to use crude palm oil as a raw material.
"EA has pioneered these innovative substances through massive investment in R&D to develop value-added products from biofuels," he said.
EA has a production facility for methyl ester, also known as biodiesel B100, extracted from crude palm oil with a capacity of 800,000 litres per day in Prachin Buri.
"PCM from methyl ester costs 80-120 baht per kilogramme, while crude palm oil costs 37-38 baht per kg," said Mr Amorn.
He said EA plans to expand the PCM manufacturing facility to 1,000 tonnes per day in the near future.
The production site in Rayong will be insufficient for this expansion, said Mr Amorn.
"EA will seek other locations in Chachoengsao and Rayong and relocate the B100 manufacturing facility to cut operating and logistics costs," he said.
The global PCM market size is estimated at roughly US$1 billion annually, with projections to triple in five years.
"These innovative substances are upgrading standards of production, transactions and quality to add value to Thai crude palm oil in global markets," said Mr Amorn.
EA has developed a blockchain platform through a mobile app for crude palm oil in a bid to record trading transactions, verify material quality and facilitate profit-sharing for sellers.
EA spent more than 1 billion baht on this blockchain technology, expecting to solve fluctuations in price and volume for this key crop.
"Value will be added to palm oil, which can increase incomes for farmers and stakeholders in the supply chain," said Mr Amorn.