In the green Fast-Moving Consumer Goods (FMCG) sector, the “Carbon Negative Label”, requires the greatest effort and most capital to pursue the world’s net zero carbon emission production.
Thailand’s only publicly listed carbon neutral company, NR Instant Produce PCL, or NRF, has already held worldwide carbon neutrality recognition for the past three years. Now a carbon negative goal is the next destination for the enterprise to achieve in the next four years.
“The carbon footprint net-zero climate impact is a long-distance destination,” said Dan Pathomvanich, CEO of NR Instant Produce Public Company Limited (NRF). “The worldwide food supply chain has been further damaged by the geopolitics resulting from the Russia-Ukraine war and resurgences of the pandemic. Food and agro-industries the world over are carrying burdens to mobilise their own businesses and prevent themselves from trade barrier red tape against irresponsible actions towards nature coexisting as well as being mindful of greenhouse emissions caused by industry.”
Since the acquisition in 2017, NRF, under the directive of Mr. Dan, has proceeded with product extension to include plant-based diets under in-house brands and ODM (Original Design Manufacturer) production worldwide. Through international joint ventures, nature-based solutions characterise NRF’s new business strategy, highlighting the company’s vision of helping the world achieve the 1.5˚C global warming limit with the reduction of greenhouse emissions.
“In 2022, our strategy has engaged advanced technology to achieve carbon negative production in accordance with the Bio-Circular-Green (BCG) Economy Model. The clean energy production involves upstream stages including agriculture and cultivation where most CO2 and methane emissions contribute to the climate.”
However, in achieving carbon negativity, green-led organisations are required to reduce the emissions over the amount of their own emissions by acquiring carbon from other CO2 resources. NRF is currently undertaking “carbon offset” through the Credit Carbon Trading The carbon offset credit is equal to 1 metric ton of CO2 avoided or captured which helps accelerate brands or enterprises to reach the goal of carbon neutrality or even carbon negativity.
“NRF recently invested in the world-acclaimed US-based Company, Frontline BioEnergy, specialising in waste and biomass gasification solutions for renewable energy, renewable fuels, and products to generate new sources of revenue alongside achieving our self-determined goal of carbon negative labelling.”
Another technology of Frontline Bioenergy has the capacity to convert agricultural waste into biocarbon and biooil, with the purpose to achieve food supply chain reformation
Biocarbon extraction is of carbon dioxide stored in biomass or agricultural waste. Biocarbon content provides benefits for soil enhancement by storing carbon dioxide as soil nourishment and mitigating 25% of methane emission for rice farming. One tonne of biocarbon is able to store three tonnes of CO2 for 600 years and helps retain soil humidity during the dry season while preventing flooding in the rainy season. Biocarbon is also recognised among livestock businesses for its nutrition and reduced greenhouse gas contained in animal food. The values of biocarbon are extended to the construction and architecture industries where biocarbon building materials lower embodied carbon in timber three times less than steel and over five times less than concrete.
Bio oil can be a substitute for petroleum and can be used in asphalt for road construction. The bio oil helps reduce heat on the street surface and absorbs heat in urban areas. Heavy Fuel Oil (HFO) is another bio oil application and it can be used as residual fuel oil in logistic marine vessel transportation.
“The nature-based solution is promising,” continued Mr Dan. “NRF plans to establish another carbon capturing factory in Thailand. However, Carbon Credit trading in Thailand is only at the initial stage. The price is around 25-107 baht or US$1-3 per tonne while the global market price is at US$25. As such, the carbon market in Thailand is price sensitive when higher offers are proposed. Standard pricing measure should be imposed in Thailand.”
“Our production caters to three markets, namely, Ethnic food, Plant-based food, and V-shape packaging, amounting to over 50,000 tonnes per year,” continues Mr. Dan. “As a purpose-led company, NRF sees potential in joint venture investments with international companies to provide and support Mega Food trends which involve food security and health-related benefits. Plant-based diets are not only a source of nutrition but also inclusive solutions for climate change as the process helps mitigate 30% of GHG emission.”
The emerging global “tech-to-table” trend is growing exponentially, reaching $29.4 billion in 2020 and accounting for $162 billion of the global protein market by 2030. The value of the plant-based food market in Thailand amounted to around $845 million, with growth at 2% in 2019, rising to 10% by 2024.
“Plant-based food has reached beyond the vegan population to health conscious consumers and younger generations. Perceptions towards vegetarian foods among meat consumers can be challenges for the plant-based category. However, the growing trend in plant-based consumption signifies the possibility to battle climate change through decarbonisation.”
In boosting appetite among discerning Thai consumers, “alt. Eatery”, a plant-based food community established by Nutra Regenerative Protein Co. Ltd (NRPT), a joint venture between Innobic (Asia) Company Limited, Nove Foods Company Limited, a wholly owned subsidiary of NRF, and Sansiri, has launched and serves dishes such as Thai chilli Paste Set, Pad Thai Noodle, Western Pasta, and Desserts.
“While there is room for Thailand to achieve Net Zero by 2050, the understanding among farmers regarding carbon credit trading and practical practices among SMEs and Thai citizens can help accelerate achieving the goal alongside investment from large corporations. Government policies in National Decarbonisation initiatives can drive Thailand to significantly reduce its CO2 footprint on the world.
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