SET-listed Sakol Energy (SKE), a compressed natural gas trader and biomass power plant operator, has maintained its projection for revenue to surge to almost 1 billion baht this year, up from 500 million baht in 2022, thanks to higher sales of premium-grade refuse-derived fuel.
Large amounts of this type of fuel are needed by Siam Cement Group (SCG), Thailand’s largest cement maker and industrial conglomerate, as the firm is committed to cutting carbon dioxide emissions by changing fuels for its cement-making process.
SCG is replacing coal with fuel made from waste.
SKE has enough refuse-derived fuel, also known as RDF, to supply to SCG and other customers, mostly power plant operators, after the construction of its new RDF production facility in Saraburi's Kaeng Khoi district was completed, said Jakkraphong Sumethchotimetha, managing director of SKE.
The 400-million-baht plant, which started operations in February, has a capacity of 200,000 tonnes a year.
Mr Jakkraphong said SKE will keep the heat value of its RDF at a high standard.
The amount of heat released during fuel combustion is currently 6,000 kilocalories per kilogramme of fuel, which is higher than 4,000 Kcal per kg stated in the RDF purchase contracts.
SKE decided to focus more on the RDF business as it promises healthy revenue, he said.
The company has a long-term purchase agreement to supply 135,000 tonnes a year of RDF to SCG. It can increase the amount to 150,000 tonnes if requested.
Under the contract, SKE sells RDF to SCI Eco Co, the waste management arm of SCG, for three years.
SKE operates another RDF production facility in Amata Nakorn Industrial Estate in Chon Buri after acquiring N15 Technology Co, a producer of RDF, with capacity of between 80,000 and 100,000 tonnes a year.
According to Mr Jakkraphong, SKE aims to venture into more businesses in the RDF supply chain this year. They include a plan to team up with waste management firms to operate garbage disposal nationwide, adding raw materials for RDF production.
The firm allocated 100 million baht for upstream RDF business development.
SKE also operates a 9.9-megawatt biomass power plant in the northern province of Phrae.
