Global Green Chemicals Plc (GGC), the biochemical arm of PTT Global Chemical (PTTGC), has allocated a capital budget of 2.5 billion baht to develop new oleochemical-based products to earn more revenue.
Oleochemicals are a feedstock for cosmetic products, including skincare, and some food supplements.
Newly appointed managing director Kridsada Prasertsuka said the company is selecting the types of products to develop and wants to decide on potential partners.
A decision should be made by the middle of this year, he said.
GGC plans to spend 2 billion baht of the budget supporting its oleochemical business and allocate the remaining 500 million baht to enhance production efficiency of its three main products: methyl ester, refined glycerin and fatty alcohol.
Mr Kridsada said the investment in new product development is expected to increase earnings before interest, tax, depreciation and amortisation (Ebitda) to 3 billion baht by 2026, up from 1.73 billion last year.
Ebitda will continue to increase to 5 billion baht by 2030, he estimated.
GGC aims to have revenue from new businesses make up 60% of Ebitda, with the rest coming from sales of existing products.
Mr Kridsada said the company expects total sales in 2023 to be on par with the 435,000 tonnes reported last year due mainly to the fluctuation of fatty acid prices, which will decrease by 15% this year.
GGC is considering increasing production capacity of fatty alcohol and refined glycerin, which are feedstock for cosmetic and pharmaceutical products.
According to the company, the price of methyl ester, which is mixed with diesel to make biodiesel, is expected to stand at 30 baht a litre this year.
The company is conducting a feasibility study on the production of biofuel for aircraft, widely known as green jet fuel or sustainable aviation fuel (SAF).
Mr Kridsada said SAF, which can be made from ethanol or used cooking oil, will become mandatory for international flights in developed countries to support attempts to curb carbon dioxide emissions.
GGC is building a biopolymer production facility in Nakhon Sawan, which will be operated by NatureWorks, a joint venture between PTTGC and US-based Cargill Inc.