Loxley Plc, one of Thailand’s biggest trading conglomerates, is spending about 4 billion baht on its five-year renewable energy plan ending in 2014.
Loxley began refocusing on renewable energy in 2010, setting an ambitious goal to raise its revenue from green business to 20% of an estimated 30 billion baht in 2016 from almost 0% of the 10 billion expected this year.
“The new sector will be a coming boom business with sustainable growth in Thailand due to full support from the government,” said Loxley president Dhongchai Lamsam.
Plans call for 2 billion baht to be budgeted for solar power development. An 8.67-megawatt facility on a 215-rai site in Prachin Buri province is being built at a cost of 1 billion baht, with operations scheduled to begin in November.
The solar power venture is being managed by L Solar, which was founded last year with registered capital of 220 million baht.
Loxley holds a 45% stake in L Solar. MFC Asset Management holds 24.9% via its energy fund, and a private investor who is a Loxley executive holds 14%. Leonics, a leading Thai supplier of solar cells, owns the remaining 16.1%.
According to Mr Dhongchai, Loxley is looking for a new solar-farm venture and is ready to apply for new licences once the Energy Ministry opens a round of bidding.
The new venture is estimated at one billion baht, with the details of the shareholding structure yet to be considered.
“We are choosing appropriate partners in this project; they could be both local and foreign,” said Mr Dhongchai, who added that the company had been approached by several investors for the development of a wind turbine project.
Loxley also plans to invest another one billion baht in developing biofuel from algae. A memorandum of understanding for the project was signed in March with Bangchak Petroleum Plc and Thailand’s largest private power producer, Ratchaburi Electricity Generating Holding Plc.
An algae plantation farm will be built next year and commercial production could come online in 2013 with about 30,000 litres per day.
Another one billion baht will go to biogas production from community waste. The company is talking with Switzerland-based Compo Gas about a strategic partnership. A decision will be announced by the end of the year.
Loxley is also developing lightweight concrete, a building material whose manufacture produces less greenhouse gas than traditional concrete. The project is under research and development with Australia’s state-owned CSIRO.
According to Mr Dhongchai, Loxley is testing chemical building materials for road development that will replace the laterite soil used in road construction. The new materials will be dust-free and more durable than traditional stones. Testing by the Asian Institute of Technology is in its final stage.
“This new product will be marketed by Loxley, with technology owned by its subsidiary, L-Tag Technology, and production to be handled by Siam Chemicals Plc,” Mr Dhongchai said.
Loxley also plans to be active in vertical gardens. The company was recently hired by the Bangkok Metropolitan Administration to develop vertical parks on roads in the business district.
Atlantis is the company’s technology for water management systems in garden areas. The project originated in Australia and is growing fast, particularly for use in high-rise buildings.
