NIA hopes to kickstart new industry with B300m

The National Innovation Agency (NIA) is offering a 300-million-baht grant for Thai companies agreeing to set up a fully integrated pilot plant for bioplastic production with an investment cost of one billion baht.

The incentive is part of the NIA’s strategic plan to offer 30 per cent funding support for investments in bioplastic resin production.

Without the NIA sharing the risks, it would be very difficult for persuade companies to set up the plant in Thailand due to the relatively high cost, said Sura-at Supachatturat, manager of the NIA’s Innovation Strategy Department.

NIA director Supachai Lorlowhakarn said that if the project succeeded, it could also help promote efforts to restructure Thailand’s agricultural system.

“Thailand shouldn’t be concerned about the scarcity of farm products but rather the oversupply,” said Dr Supachai.

Vichian Suksoir, the NIA’s senior department manager, said applicants for the grants should be at least 50 per cent Thai-owned companies, but joint ventures with foreign technology providers would also be eligible.

Potential applicants include PTT Chemical Plc, Siam Cement Group and Mitr Phol Group.

“We will look at the possibility of the technology and their business plan, as well as research and development in the future,” said Mr Vichian.

The pilot plant, with a production capacity of between 1,000 and 10,000 tonnes per year, should be up and running for two years before a commercial plant is set up after 2014.

The location would be decided by the participating firms.

“The location will be dictated by either raw material sources or utilities. For instance, if the company plans to use cassava, the northeastern region could be an option, as opposed to the central part of Thailand if they plan to use sugar. In terms of utility availability, Rayong would be a good option,” said Mr Vichian.

Asked whether genetically modified organisms (GMOs) should play a role, Dr Supachai said: “The answer to this sensitive issue is that we have no choice or else we won’t be able to compete with other countries.

“For Thailand’s position, we need to seek two things simultaneously. We need to do both - we probably won’t be against GMOs, but then we aren’t leaving out [normal crops] either.”

He said that in the first phase, the zoning between food and non-food crops needs to be clear to ensure that no GM materials from non-food crops are transferred to food crop areas. GMO crops should also strictly be non-food crops.

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