UAC Global Plc, a chemical trader and clean power operator, plans to allocate 300 million baht to support diversification into renewable energy and oil production development.
Roughly 20 million baht is for the development of a 3-megawatt biogas power plant in Khon Kaen, said Chatchapol Prasopchok, president and chief executive of UAC Global.
This power plant is among the projects under the government's Energy for All renewable scheme, which encourages businesses and communities to jointly invest in biomass and biogas-fired power plants.
The facility is scheduled to start operation within the third quarter of this year.
The plant's second-phase development is expected to be completed in the fourth quarter.
UAC Global also plans to allocate 100 million to support the development of its refuse-derived fuel (RDF) factory in Khammouane province, Laos.
The plant will supply RDF to Siam Cement Group (SCG), Thailand's largest cement maker and industrial conglomerate, which runs a cement making factory in Laos.
SCG is replacing coal with RDF in its cement-making process under its goal to reduce carbon dioxide emissions.
UAC Global's RDF factory is designed to have production capacity of 120 tonnes a day.
The company also operates two onshore oil production blocks -- L10/43 and L11/43 -- in Sukhothai.
Its first oil production from L11/43 stood at 300 barrels a day last year.
UAC Global plans to spend 50 million baht boosting production capacity at this oil field to 500 barrels a day.
The company earned 250 million baht from its petroleum business in 2022.
UAC Global also set aside a budget to develop renewable energy projects under the 5.2-gigawatt renewable scheme, overseen by the Energy Regulatory Commission.
The scheme promotes the development of wind power (1,500MW), on-ground solar farms (2,368MW), on-ground solar farms with energy storage systems (1,000MW) and biogas (335MW).
UAC Global proposed six solar power projects at an auction organised under this scheme.
If all the proposed projects win spots in the scheme, the company expects to spend US$25 million for the investment.