Mae Sod Clean Energy Co (MCE) has set a goal to run at full capacity for ethanol production -- some 260,000 litres per day -- by 2021, expecting sugar-cane supply at the plant in Tak province to reach 1 million tonnes.
This year the company aims to produce 240,000 litres per day, with a sugar-cane volume of 600,000 tonnes. That amount would give MCE a 90% utilisation rate.
Chonnee Nuabut, the finance and administration manager, said many cultivation areas in Mae Sot district have the potential to supply sugar cane to MCE, and local farmers are expanding their plots to support such demand.
"We forecast the cultivation areas growing sugar cane in this district to reach 100,000 rai in 2021, up from 56,000 rai in 2019," Ms Chonnee said. "Our plant can produce ethanol from local sugar cane, using it to generate electricity."
She said MCE has already signed agreements with local farmers near the production plant to supply sugar cane, so the company is confident of reaching maximum capacity by 2021.
Tak is a hub of bioethanol production in the country. MCE aims to share benefits with local sugar-cane growers, Ms Chonnee said.
Founded in 2009, MCE was formed by Padaeng Industry Plc, Thai Oil Plc and Mitr Phol Biofuel Co to run the ethanol production plant in Mae Sot district with an investment of 2.2 billion baht.
The plant is aimed at supporting sugar-cane plantation in Tak for local renewable power, in line with a master plan to develop Mae Tao subdistrict under the Interior Ministry.
MCE has two business units, ethanol and power generation.
Ms Chonnee said MCE worked hard to increase ethanol production annually from 100,000 litres per day in 2009 to 200,000 litres per day in 2012.
She said the plant can make sugar juice into syrup once there is a limitation of sugar cane feedstock and maintain the utilisation rate when the crop season ends.
Sugar cane is grown during April to December, so ethanol production has to stop until the new crop year comes, normally during November-May.
MCE aims to increase local farmers' incomes to a total of 2 billion baht annually.
Ms Chonnee said MCE can generate electricity with zero-waste technology at a combined capacity of 16 megawatts.
Of the total, 5.6MW is fed to MCE's ethanol production plant, while the remaining capacity is connected to the state's power grid.
Ms Chonnee said MCE plans to increase power generation by a further 16MW soon in order to send electricity to Myanmar's bordering communities.
"We plan to talk with Myanmar's state utility about an agreement and licence granting," Ms Chonnee said.