UAC Global Plc (UAC), a chemical trader and renewable energy operator, is preparing to allocate 200 million baht to build a refuse-derived fuel (RDF) factory in Indonesia to supply local companies under the circular economy concept.
The company expects power firms and factories to be its main customers.
A circular economy involves up-cycling processes to make value-added products.
The UAC board approved a plan to develop the RDF production facility, named RDF 3, in Sukabumi in West Java, through UAC's subsidiary PT Cahaya Yasa Cipta Co.
This factory is among the projects promoting a circular economy in Southeast Asia, said Chatchapol Prasopchok, president and chief executive of UAC.
PT Cahaya Yasa Cipta plans to invest 70% of the cost for the RDF 3 project, with 30% allocated by PT Terang Hidup Energi.
Indonesia is the third country where UAC has expanded its business, after Thailand and Laos.
According to the company, RDF 3 will use 500,000 tonnes of solid waste from landfill to produce RDF, with additional garbage of 200 tonnes a day.
The amount of garbage is expected to increase to 450-500 tonnes a day in the next few years.
UAC expects companies in the cement industry to be among the target customers as they are increasingly concerned about climate change issues.
The company said earlier it plans to allocate 100 million baht to support the development of its RDF factory in Khammouane province, Laos.
This plant will supply RDF to Siam Cement Group (SCG), Thailand's largest cement maker and industrial conglomerate, which runs a cement factory in Laos, according to UAC.
SCG is replacing coal with RDF in its cement-making process as part of its efforts to reduce carbon dioxide emissions.
Mr Chatchapol said the company is allocating 20 million baht from capital spending for the final-phase development of its biogas-fired power plant in Khon Kaen's Phu Pha Man district in northeastern Thailand.
The three-megawatt power plant is under the government's "Energy for All" renewable scheme.
