Lao-Swedish company plans bio-refinery in Vientiane province
Lao-Swedish company plans bio-refinery in Vientiane province
Burapha Agroforestry Company Ltd, a Lao-Swedish joint venture, has announced that it will spend an excess of US$1.2 billion to establish a modern bio-refinery with an integrated plantation base in Vientiane province.
The company said the project will be one of the most advanced bio-refineries in the world, setting new standards for environmental and socio-responsibility.
The large scale pulp mill will produce dissolving pulp for the textile industry, bio-chemicals and bio-energy.
It is also expected to benefit research capacities and education levels among factory technicians in Laos, according to company management.
If works progress according to plan, the refinery will be completely operational by 2025 once adequate raw materials are available. Operating at full capacity it should generate job opportunities for more than 20,000 people.
The company said the products would supply both domestic and export markets, with its main export destinations being China, Indonesia and Thailand.
Earlier this week, company representatives visited Vientiane province to hold talks with the provincial authorities and officials from the surrounding districts. The talks were chaired by deputy governor of the province Ms Singkham Khongsavanh.
Amongst the main issues discussed was sourcing suitable land for the establishment of the bio-refinery and for the plantation of eucalyptus trees.
The biological growth from the plantations will, in the bio-refinery process, be transformed into products generating close to US$1 billion annually in export income for Laos.
The bio-refinery will consume around 2 million cubic metres of wood per year, corresponding to a total plantation area of some 60,000 hectares.
This will be comprised of a combination of farmers' and community land and company agro-forestry plantation.
Ms Singkham said she welcomed such investment projects to her province and she believes that the Burapha project will generate job opportunities and help alleviate poverty among local people.
Burapha has been working on preparations for the bio-refinery project since late 2010 and, subject to the approval by the Lao government, is now ready to launch the first phase of the project.
The first phase is to build a fiber base large enough to support one of the most modern bio-refineries in the world and to start planning and prospecting for the establishment of such a facility.
According to a report from Burapha Agroforestry Company, Vientiane province has been identified as a suitable location for the project.
The region combines the most important location criteria; availability of land for agro-forestry, aptitude for good growth of plantations, limited conflicting interest regarding land-use, adequate conditions for the mill, good logistics and infrastructure.
The total land area of the proposed project region is 2,230,000 hectares of which Burapha bio-refinery project will require less than 3 percent of the total land area, or some 60,000 hectares, according to the company.
Burapha forestry says the introduction of advanced technology and competencies to Laos will create a similar cluster of research and development as has been developed in Sweden in relation to a modern bio-refinery concept.
vientiane times
