In an era where environmental considerations are some of the highest priorities in doing business, one company is facing the challenge of transforming its business from zinc mining.

With the Thai Ministry of Energy’s target capacity for renewable energy production to increase from 7.3MW in 2014 to 19.6MW in 2036, many companies are opting to source more sustainable types of alternative energy for their operations.

For over thirty years, Padaeng Industry (PDI) has mined natural resources, such as zinc ore in Mae Sot District, Tak province. Now, the company is ceasing its zinc mining operations, and turning instead to managing coffee and timber wood plantations as well as producing alternative energy from biomass using innovative technology.

“We want to work on thinking green,” says Francis Vanbellen, managing director of PDI. “An example is the Mae Sot mine where we have already reforested 3,000 trees around the mine.”

The company is facing a huge transition after making the decision to close down the mines and restructure its operations to move towards the green sector. New projects include 48MW solar farms in Tak province, a 54MW wind-energy power plant in Nakhon Ratchasima province, and an 8MW biomass power plant in Surat Thani province.

Vanbellen says that PDI has an extremely strong technology team that looks into the development of the power plants. PDI sources technology from overseas and combines them with existing knowledge in Thailand.

“The only way to create the future is to use innovative technology, not just copy and paste,” says Vanbellen. “For example, if we use cheap technology for the biomass plants, the welding would not be done properly. We are investing 20 million baht more per megawatt so that the energy produced from the project can increase by 25%.”

Other green initiatives include coffee and cocoa plantations. “We’re helping farmers to grow cocoa beans in Thailand,” says Vanbellen. “Only 1% of the world’s cocoa beans are grown in Southeast Asia – there is potential to raise that number to 10%.”

Looking forward to the opening of the AEC, Vanbellen is optimistic that Thailand is in a good position in terms of logistics and labour. “Thailand is perfect for doing business,” he says. “We have skilled people and the country is centrally located between China and India. It is also a good location between Cambodia and Myanmar, both growing markets.”

Vanbellen is also confident about his company’s transition towards the green economy.

“In five years from now, PDI will have a market capitalisation five times [greater than] today,” he says. “We want to think globally and act locally and I believe we will be a very diverse company.”

For more information, visit www.padaeng.com

Words by Pimsirinuch Borsub