Ubon Bio Ethanol Plc (UBE), a manufacturer of cassava-based products, has bought a floating solar farm in Ubon Ratchathani from Bay Wa RE Solar Pte for 82.4 million baht in a move to grow its clean energy business.
The purchase of the 2.83-megawatt facility, which was made through its organic product manufacturing arm Ubon Saeng Arthid Co, is also aimed at helping UBE save 9 million baht per year on electricity bills.
Bay Wa RE Solar has operated the floating solar farm through Ubon Co since January.
UBE's managing director Sureeyot Khowsurat said the new asset acquisition will pave the way for the expansion of renewable energy business, following its operation of three bio-gas power plants.
"Our power business uses 100% clean resources and has combined capacity of more than 10MW," said Ms Sureeyot.
Its three bio-gas power plants have a total electricity generation capacity of 7.5MW. The facilities are fuelled by biomethane gas, derived from biogas made from waste generated by cassava processing.
UBE is a manufacturer and distributor of processed cassava products, including cassava starch and cassava flour, which is available in both organic and non-organic categories.
The firm uses cassava to produce ethanol, a key raw material for making gasohol, a mix of ethanol and benzine.
UBE is recognised as the largest tapioca manufacturer in the northeast, with more than 1,200,000 tonnes of cassava root used in the manufacturing process.
The firm is further developing its agricultural business with the aim of producing value-added food products through the use of high technology. Last year it raised funds under an initial public offering to support its long-term plans in the carbohydrate nutrient business.
Two years ago, UBE launched non-gluten and non-genetically modified organism cassava flour to sell to consumers, especially those who are allergic to gluten.
Within the next five years, the firm expects its new food business will have earnings before interest, tax, depreciation and amortisation (Ebitda) at a rate of 70%, up from 42% at end of the first quarter of this year while its ethanol business will see its Ebitda fall to 30%, down from 58% at present.
UBE expects its revenue to increase to over 10 billion baht under its ongoing capital spending of 2 billion baht between 2022 and 2023.
