Bangchak Petroleum and Thaioil acquire stake in ethanol plant

Bangchak Petroleum Plc (BCP) and Thaioil Plc are part of an acquisition deal for part ownership in a new ethanol plant being built by Ubon Bio Ethanol (UBE) in Thailand. BCP and Thaioil will both own 21.28% of the new plant. The purchase price for both companies was 750 million baht (US$24.7 million). The new plant will turn fresh cassava roots and chips into ethanol. The plant capacity is 400,000 liters. Local demand for ethanol is low, but most of the production will be exported to China. The plant will be operational by the middle of 2012. BCP President Anusom Sangnimnuan said, “Domestic ethanol demand is slow, but the company has secured purchase orders from China. This will guarantee a return on investment.” This acquisition is part of BCP’s renewable energy strategy, with investments in solar farms, wind turbines, ethanol and biodiesel. (February 22, 2011)