Lao biodiesel maker expands oil palm plantations
Lao biodiesel maker expands oil palm plantations
Lao Agro Tech Co., Ltd. is expanding its palm plantation area after beginning to sell the biodiesel it produces from oil palms planted two years ago.
The company is growing palms on their own plantation and also encouraging farmers to plant oil palms under a 2+3 policy in cooperation with local businesses.
In addition, it is working with Toyota Lao Service Company to grow palms on more than 700 hectares of land in Vientiane and Xayaboury provinces.
Almost 200 hectares of palm trees have been planted so far, company Director Mr Oudom Keothavong told Vientiane Times yesterday.
The company is able to produce about 20,000 litres of biodiesel (B100) as well as 400,000 litres of biodiesel (B5) and 200,000 litres of biodiesel (B10) a day, he said.
Most of the company's biodiesel is sold to domestic companies that are operating projects within the country.
The company is currently preparing 50,000 palm saplings for farmers and entrepreneurs to grow this coming rainy season, said Mr Oudom.
Lao Agro Tech operates a complex business starting from oil palm sapling cultivation, palm plantation and palm product processing, working in cooperation with OPG Tech Co., Ltd. which is an international expert in the oil palm industry.
The company selects quality palm seeds which suit the climate and soil in Laos and is able to produce quality palm saplings with participation from farmers and entrepreneurs.
“I am not sure how many hectares of palm trees will be grown this year but I am sure that the number will be higher,” Mr Oudom said.
In 2012, Lao Agro Tech teamed up with the Institute of Renewable Energy Promotion to build a demonstration plant capable of producing biodiesel from oil palms, under a Memorandum of Understanding signed in April 2012.
Biodiesel produced by the company is currently available for commercial supply to domestic companies and projects.
In the future, Lao Agro Tech plans to build biodiesel fuel stations when the government considers operating this business.
The company is currently in the operating stages and processing documents in line with government policy.
The government hopes that the biodiesel will help to decrease petrol imports and create more job opportunities for local people.
There are also some foreign companies investing in palm plantations in the central and southern parts of Laos but they are not yet at the production stage.
