First Wood Pellet Project to be Launched in Laos

Thai and Lao companies join for wood pellet project

A new Thai-Lao joint venture will see the development of a wood pellet project in Laos, with a production capacity of 60,000 tons per year.

RATCH Group Public Company Limited, together with Buriram Green Energy Company Limited (BGE) and Siphandone Bolaven Development Company Limited have together established Siphandone Ratch-Lao Company Limited to launch the wood pellet project.

The three companies signed an agreement on Monday on the establishment of Siphandone Ratch-Lao Company, which will establish the wood pellet production project with a registered capital of THB 1.7 million, or LAK 500 million, according to a report by RATCH Group.

RATCH-LAO Service Company Limited holds a 25% stake, while Buriram Green Energy Company Limited and Siphandone Bolaven Development Company Limited hold 65% and 10% respectively.

Operations are set to begin next year.

Mr. Kijja Sripatthangkura, CEO of RATCH Group Public Company Limited said that the company commenced its feasibility study in 2018. Currently, the Company is in the process of sales contract negotiation and applying for various licenses. It expects that the wood pellet plant will start construction in 2021 with commercial production and distribution to begin in early 2022.

“The project will cover some 3,000 hectares in Champasack Province, with plans to export the biomass fuel to industrial customers in Japan and South Korea under long-term contracts,” added Mr. Kijja.

The demand for wood pellets in the industrial sector has increased globally, and the pellets are also used in biomass-fired power plants.

Developing countries can also make use of wood pellets for fuel in place of firewood, which could help to reduce the threat of deforestation as populations grow.

In many European countries, wood pellets are used in cogeneration, where steam is produced to turn turbines to generate electricity and to heat homes and offices in the winter.