Asia Biomass Plc (ABM), Thailand's largest biomass fuel producer and trader by volume, expects revenue to grow by 20% this year to more than 3.6 billion baht thanks to its business expansion amid growing concerns over global warming.
The company's sales volume is projected to be 1 million tonnes in 2023.
Last year, ABM revenue grew by 41% to 2.71 billion baht, up from 1.92 billion in 2021.
The company bases its business outlook on lower coal usage among entrepreneurs in the power and industrial sectors as they tend to use more clean fuels such as biomass in their production processes, said Tiyada Mekpongsatorn, managing director of ABM.
The company produces and sells various types of biomass fuels, including palm kernel shells, sawdust, wood shavings, wood chips and wood pellets.
Though prices of coal in the global market decreased, delaying the purchase of biomass fuels, Ms Tiyada said she believes more companies will shift to clean fuels as campaigns against fossil fuels become more serious.
Prime Minister Prayut Chan-o-cha vowed in 2021 during the 26th UN Climate Change Conference in Glasgow that Thailand would be more serious in addressing climate change, striving to reach carbon neutrality, a balance between carbon dioxide emissions and reduction, by 2050.
In the first quarter of this year, coal prices dropped from US$400 per tonne to $200 per tonne.
ABM expanded its business to serve growing biomass demand by buying Hom Hom Farm Co, a wood chip producer, from Yanos (Thailand) Co for $1.28 million, or around 45 million baht.
The payment is slated to be settled by next month.
Hom Hom Farm's production facility in the northeastern province of Nakhon Ratchasima is to supply 80,000 tonnes of wood chips a year to ABM.
The factory is located in an area that facilitates the transport of this biomass fuel to customers, said Ms Tiyada.
According to the company, large purchases of biomass originate from manufacturers of food and beverage, fashion products and cars.
These companies have adjusted their production processes, allowing them to use biomass fuels along with coal.
ABM plans to acquire three more wood chip factories in northeastern Thailand to expand its business, she said.
