MFC fund invests B20m in biodiesel maker in Chiang Rai

The E-Ester acquisition is the first investment made by the 2.5-billion-baht MFC Energy, a fund focusing on investment in energy businesses.

Pichit Akrathit, the president of MFC, the energy fund manager, said that investing in E-Ester would help the country reduce dependence on imported energy and promote the use of biodiesel.

Moreover, E-Ester has developed its own technology, which is being used to produce V Gen biodiesel at its well-equipped plant in Chiang Rai. The biodiesel production uses palm oil as the raw material.

E-Ester began producing biodiesel on Monday at the rate of about 50,000 litres per day when the plant was officially opened by Prime Minister Surayud Chulanont. "After a strict assessment, we found that E-Ester is a good investment. It will generate a return as high as 40%," Dr Pichit said.

< E-Ester has paid-up capital of 80 million baht. Its three co-founders are Surathian Chakthranont, the former president of SC Asset Corp; Viroon Kumpilo, the owner of Viroon Business and Technology Chiang Rai School; and Wichai Jaivisuthunsa, the former dean of the Science and Technology Faculty at Rajabhat Kampangpetch University.

The three had researched V Gen biodiesel in a small laboratory at V-BAC for two years before it was ready for commercial sale.

Mr Surathian, who is also the E-Ester chairman, said the maximum production capacity at the Chiang Rai plant would rise to 100,000 litres a day in the future when local supply of palm oil increased.

Sign up for our
regular news updates

Latest Bioenergy Industry News

•   Biofuel Subsidies in China
•   CME: Crude Oil Prices Impact Livestock Production
•   €50m Set for Wind Farm Investment
•   Planning Notice for Aegir Offshore Wind Farm Submitted
•   Agreement on Viability of Mammoth Ethanol Facility
•   EPA Applauded for Biodiesel Rule in 2009
•   Type of Physic Nut to Undergo R&D
•   Sweet Potatoes Entering Biofuels Arena
•   Investments Funded in Ethanol-making Microbe
•   Sugarcane Expansion to be Restricted