BIOGAS LOANS ARE MUCH MORE THAN JUST HOT AIR

 

ENERGY CONSERVATION FUND AIDING INDUSTRIES WITH UP TO 25% OF INVESTMENT

The Energy Conservation Fund has earmarked loans of Bt4.93 billion, from 2008-11 for industrial plants, to help finance their projects for turning biogas into power.

The loans were targeted at small. Medium-sized and large pig farms; pig, cow and chicken slaughter-houses; hotel waste food; and plants manufacturing tapioca, flour, palm oil, ethanol, rubber concentrate and canned foods.

“These industries release more wastewater during processing than do others” said former energy minister Piyasvasti Amranand during a trip to the South before the end of the previous government's term.

The industries are entitled to loans worth up to 25 per cent of their investment.
Under the scheme, the ministry expects to generate 761.8 million cubic metres of biogas per annum, and this will substitute for an annual 204 million units of electricity use, 10.4 million kilograms of cooking gas and 308.9 million litres of bunker oil, all of which are worth a combined Bt5.4 billion. Within four years, no wastewater should be released from the plants.

The ministry has received over whelming interest from plants nationwide for financial assistance, especially in the South, where there are a large number of palm-oil and rubber processing plants. Biotechnology will help them reduce both energy bills and wastewater

In promoting biotechnology, besides the fund's measures the ministry also plans to pay extra for each unit of power generated and sold by the plants. The extra sum, or “adder”, could be 30 satang a unit.

The ministry estimates 1.7 billion cubic metres of biogas could be turned into power, which would save 935 million litres of bunker oil a year, worth more than Bt14 billion. However, so far only 300 million cubic metres of biogas have been used. .

Once this supporting measure is up and running, provinces will also need to tighten their rules controlling wastewater released from industrial plants.

The Thachang Industry Group of Companies is one business entity that is making use of biogas technology. Managing Director Pongnarate Wanasuwankul said the project to turn wastewater into power would cost Bt80 million and could generate 1.4 megawatts of power, sufficient for us in the industrial plant, with surplus sold to power utilities under the small power producer programme.

The company plans to increase the capacity to 2MW, which will need an additional investment of Bt25 million. It also plans to spend another Bt250 million for a biomass power plant, which should break even in three years.

Inter Rubber Latex environmental engineer Pathom Jirojchodechai said his company was interested in joining the project. The company is upgrading its technology to maximize the value of biogas from rubber plants. At present, it is entirely used in electricity generation.

“We have invested Bt35 million so far and saved 20 per cent on our energy bills, or about Bt200, 000 a month,” he said “Earlier, we paid Bt1 million a month for electricity.”

Source: The Nation, Wednesday, 13 February 2008.

Under the guidance of His Majesty the King, Thailand is now one of the most progressive countries in S E Asia when it comes to taking action on the environment. The above article is typical of numerous positive projects that are currently underway throughout the Kingdom.

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