Thai Airways International (THAI) on Friday submitted a request to revise its rehabilitation plan, which includes recapitalisation that would increase the company’s registered capital to 80 billion baht.
The Cabinet gave the green light for THAI to undergo rehabilitation under the Bankruptcy Act in May 2020, while the airline’s protection filing was granted by a court in June last year.
The Finance Ministry and state enterprises will still have 40 per cent shareholding in the company under the revised plan.
Details of the revised rehabilitation plan are as follows:
1. Procuring loans and/or bonds with a period of no more than six years, totalling no more than 12.50 billion baht. THAI has also prepared a revolving credit facility for the same amount as a backup plan.
2. Increasing registered capital to approximately 31.50 billion shares to boost THAI’s financial structure and enable its shares to be traded on the Stock Exchange of Thailand (SET) again:
Allowing new loan subscribers to purchase newly issued ordinary shares equal to the company’s drawdown amount of 12.50 billion baht.
Allocating newly issued ordinary shares for repaying debt. All debt the company owes the Finance Ministry, which is the company’s creditor and main shareholder, will be converted into equity. Meanwhile, 24.5 per cent of the company’s debt with creditors who hold the company’s debentures will be converted into equity, while the remaining 75.5 per cent of debt will be repaid using the company’s cash flow in line with the original plan. This plan to change debt into equity will enable THAI to reduce debt by approximately 37.80 billion baht.
Allocating newly issued ordinary shares to support the conversion of debt from interest into equity at 2.5452 baht per share. This will enable THAI to reduce debt from interest by approximately 4.84 billion baht.
Offering newly issued ordinary shares at a price that the rehabilitation plan administrator deems appropriate and not less than 2.5452 baht per share to existing shareholders based on their shareholdings. In case the newly issued ordinary shares are not fully subscribed, the remaining shares will be offered in private placement. This move is expected to enable the company to raise funds of approximately 25 billion baht.
The revision of THAI’s rehabilitation plan is expected to be completed within 2024. If the plan succeeds, THAI’s equity will be on positive trajectory in 2024, while the company’s shares could be traded on the SET in 2025.
“This move aims to boost confidence among creditors in line with aviation business recovery and boost THAI’s growth in revenue,” the company said.
THAI has witnessed exponential growth in revenue since November 2021. The average number of passengers using THAI and its subsidiary airline, Thai Smile Airways, from June 1-27 this year has increased to 12,568 and 12,257, respectively, compared to 269 and 4,929 between April and October last year.
THAI’s cabin factor from June 1-27 this year has risen to 75 per cent, while its booking rate in the third quarter this year has risen significantly after the country’s reopening.
Thai Honda Co Ltd, a major manufacturer of power products, is celebrating a milestone of 45 million units produced, and exports to over 50 countries around the world.
The company said it has strengthened its position as the world’s “largest and fastest production base” for power products.
And it is now planning to further penetrate the Thai market through new distribution channels and turnkey after-sales services to cater to its customers.
“Thanks to highly efficient technology and production control, Thai Honda products are exported to 53 countries around the world, including Europe and the Americas,” said the company’s president, Shigeto Kimura.
A total of 39 million units have been exported globally, accounting for 93 per cent of the products produced.
“Thai Honda takes pride in its internationally accepted products made by Thai people, and is committed to developing products to meet our customers’ demand,” Kimura said.
According to him, the power products industry in Thailand started in 1987 as a production base and export hub. With constantly increasing demand and production capacity, Thai Honda has become the world’s largest factory of Honda power products. Also, with a production capacity of 16 seconds per unit, it is considered the fastest.
Thai Honda has achieved cumulative production of 45 million units.
Its eight product categories available in Thailand are: general-purpose engine, generator, water pump, backpack sprayer, brush cutter, lawn mower, outboard engine, and power tiller.
Distribution channels include Honda dealers and modern trade stores, such as Home Pro, DoHome, and Siam Global.
This year, Thai Honda has a plan to penetrate the domestic market by reaching more target groups through new distribution channels. The plan is to increase production for the local market from 7 per cent to 10 per cent and expand the dealer network of some existing 200 nationwide.
The DTAC-True merger will create better competition so customers should not be concerned about the increasing service price, Total Access Communication said.
Total Access Communication (DTAC) held a press conference on Thursday to explain the merger with True and its future direction.
Sigve Brekke, president and chief executive officer (CEO) of Telenor Group, said that the company had entered the Thai market around 20 years ago and will stay for 20 more years.
He explained the company’s vision at that time was that every Thai deserves a mobile phone and should be able to afford it.
Brekke said Thailand’s mobile phone penetration is currently at 86 per cent with 98.5 million mobile connections. He called this Telenor’s growth 1.0 in Thailand.
Brekke speculated that Telenor’s growth in the next 20 years will be different.
The telecommunications industry is facing a “perfect storm” with new technologies, including 5G, artificial intelligence, and Internet of Things.
He said that it will no longer be about connecting people together but about connecting machines and physical objects to the internet.
He highlighted new ways consumers, businesses and governments can use these technologies.
He cited four examples based on real cases such as the factory’s 5G private network to control robots via live-feed, the 5G network and AI for port operations in Malaysia, the Norwegian Defence’s piloting private network, and campus mobile for hospitals that give highly robust connectivity to connect with patients at houses or ambulances.
He emphasised that the competitive landscape would be different as competitors will not just be traditional telcos but global platform companies such as Amazon Web Services (AWS), Google Cloud and Microsoft.
They will be both partners and also competitors. Brekke added that Telenor has signed global partnerships with AWS, Google and Microsoft.
Therefore, the merger between these two telecommunications companies will create a new ‘telecom-tech company’, and not merge one telecom company with another.
It will revolutionise new products and services by creating new technologies and innovations and strengthen competition in the country by combining two weaker companies into one stronger company.
Brekke said, “What Telenor is trying to build in Thailand is not a telco company. We are trying to build a new technology company that will enable Thailand to take advantage of the perfect storm of technologies and deliver new products and services for Thailand.
“We can only do so if we have scale to partner these global companies. A small local telco will not be of interest to these global companies who are after scale.”, Brekke added.
Brekke cited the merger between Telenor Group’s subsidiary Digi and Celcom in Malaysia as similar to the proposed DTAC-True merger
Jørgen Rostrup, executive vice president and head of Telenor Asia, added that the merger will create a strong company that can invest and contribute to future digital and technology development in Thailand.
He mentioned that the merger would help in investing in new technologies and customers would be able to access at an affordable price because the company could not invest by itself as the technology has a high cost.
It is an opportunity for Thailand to be propelled into growth 2.0 and put the country at the forefront, as Thailand has the potential to be the leader in technology, Brekke said.
He said the reason for the merger was that Thailand needs two strong market players, not one strong and two weak.
Rostrup said that the new company will be good for consumers, businesses, startups and stakeholders.
He added that Telenor’s mission is to empower society by upholding highly responsible business standards, supporting digital talent development and creating a workplace that is fit for the future.
They also told the press that the merger process is expected to finish at the end of this year as the regulator — the National Broadcasting and Telecommunications Commission (NTBC) — is doing its job and the company expected the process will finish in July. After that, the company has to seek approval from shareholders and investors.
They warned that Thailand would lose an opportunity to put the country at the forefront if the merger was blocked.
They assured consumers again that the price would be controlled by the mechanism while NBTC has a role to regulate and control it.
June 29, 2022 – Covestro, a world leader in polymer materials, organized “Hands for a Brighter World” campaign to drive sustainability by upcycling plastic wastes under the fully circular concept.
The project aims at promoting efficient management of plastic wastes which can be recycled and bring them back to the loop and generate value to them again according to the circular economy principle. The activity includes supporting plastic waste sorting stations for further recycling to Bangkok Metropolitan Authority (BMA) by the Department of Environment in collaboration with Less Plastic Thailand Network. The collected plastic waste, PET bottles, will be recycled into high-visibility working suits to enhance the safety of road sweepers in Bangkok. The handover of the sorting stations was held on June 17 at the Bangkok City Hall 2. In addition, five more stations were installed at the Covestro manufacturing site in Map Ta Phut Industrial Estate, Rayong province where employees are encouraged to donate recyclable plastic wastes so they can be recycled and create value back to the community and society.
Dr Timo Slawinski, Managing Director of Covestro (Thailand) said, “Covestro’s mission is to promote innovation and growth with profitable products and technologies that benefit society while reducing the impact on the environment. We would like to pass over value and sustainability to our future generation, therefore, we make every effort to align our vision on the direction of circular economy. By creating new ideas and innovations that benefits to reserving and making most use of the natural resources that is being scarce, bringing them back to the loop, reducing impact from plastic wastes and promoting reduction of greenhouse gas emission throughout the value chain.
“In March, Covestro announced our 2035 Climate Neutrality Target. Therefore, our campaign, “Hands for a Brighter World” shares a common vision and goal with the “Bangkok Magic Hands” project. This initiative comprises two of Covestro’s core values together: commitment to safety and sustainability, enabling us to turn waste into value. The results are road sweeper personal safety devices – high-visibility suits made from recycled plastic bottles – for the BMA and the Map Ta Phut Municipality.”
Ms Khawissara Wattanapisit, Head of Communication ASEAN Covestro (Thailand), said, “The Hands for a Brighter World project is one of the latest social activities to reiterate Covestro vision for sustainable business operations under the circular economy concept to protect our limited resources. We are committed to minimizing our carbon footprint seriously to reduce the impact on climate change which, in turn, creates opportunities for future generations in the long term. This project is an outstanding example of collaboration among multiple stakeholders who are aware of the problems and working together to reduce the plastic waste problem. This collaboration not only promotes sustainability at the community level but also contributes to national and global levels. To achieve our common targets, one hand or party cannot succeed on its own, but collaboration is needed – this is where the project name stems from.”
Mr Wirat Manassanitwong, Director of the Department of Environment, BMA, revealed, “The BMA top environmental policy is to achieve Net Zero greenhouse emissions and this is well supported by the private sector, hence the creation of this network. The BMA currently encourages the private sector to collaborate on 4 types of activities: renewable energy, green zone expansion by tree planting, waste reduction & management, and traffic management. Recently we organized Earth Hour in March as 1 of 190 countries around the world to switch to electricity at night to raise awareness of energy conservation. We are also campaigning waste pollution prevention with 17 districts on the Chao Phraya River, aiming to reduce littering in the river, and have so far held activities in 3 districts.
“At present, a number of corporations have volunteered to plant trees in BMA public areas or requested the BMA to arrange for areas in support of the BMA Governor’s 1 Million Tree Planting Policy. The “Bangkok Magic Hands” project is a collaboration of several parties with the BMA acting as the middleman in arranging for locations where donors can contribute. We are pleased that Covestro offer plastic waste sorting stations that are attractive and interesting to the public which helps promote actual waste sorting from all. We plan to use some of the collected PET bottles, upcycle them into PPE, and if they are can achieve existing safety standards and comfort requirements, then we will offer them to our road sweepers.”
Covestro is among the leading global polymers manufacturers with a vision to create a better world by driving a circular economy and optimizing the utilization of resources. We produce plastics sustainably, drawing on the benefits of alternative raw materials and renewable energies. To realize our vision we are committed to reducing plastic wastes and airborne emissions, as well as improving waste management. Moreover, we strive to innovate new technologies to recycle discarded products and materials and turn them into raw materials once again.
Covestro in Thailand is committed to raising environmental protection awareness among the youth through the regular organization of educational activities and the publication of educational materials. This includes the booklet series titled “Bright Minds for a Brighter World” for primary schools in Thailand to educate the importance of waste sorting under the circular economy concept. We also organize workshops for teachers on environmental management both in Bangkok and Rayong.
BTS Group strives to improve the quality of life and well-being of people through the integration of core businesses. The Group has developed and created an innovative ‘3M strategy’ comprising MOVE, MIX, and MATCH, leading to unlimited business growth.
PTT Group board of directors and Foxconn Technology Group executives recently met the Prime Minister to discuss the future of EV industry and investment opportunities.
BANGKOK, June 28, 2022, PTT Group board of directors, including Prof Dr Thosaporn Sirisumphand, Chairman of PTT Public Company Limited (PTT) and ARUN PLUS Co., Ltd. (ARUN PLUS), Mr Danucha Pichayanan, Secretary-General, Office of the National Economic and Social Development Council, M.L. Chayotid Kridakon, Thai Trade Representative and Advisor to Prime Minister, and Mr Auttapol Rerkpiboon, President and Chief Executive Officer of PTT, together with the top executives from Foxconn Technology Group, Mr Young Liu, Chairman and CEO of Foxconn, paid a courtesy visit to H.E. General Prayut Chan-o-cha, Prime Minister of Thailand, and Mr Supattanapong Punmeechaow, the Deputy Prime Minister and Minister of Energy of Thailand.
The objectives of the visit were to express the strong determination and solid collaboration of Foxconn Group and PTT Group to strengthen Thailand’s EV industry and investment opportunities. Also, some key discussion topics including relevant operations, to monitor the progress of cooperation between PTT Group and Foxconn joint venture, and to create comprehensive EV ecosystem in Thailand were highlighted.
PTT CEO, Mr Rerkpiboon, revealed that the highlights of this visit had covered the construction of the EV production plant, the newly established HORIZON PLUS Co., Ltd. (HORIZON PLUS), jointly owned by ARUN PLUS, and Foxconn, to serve as an EV OEM for car companies, both in Thailand and in ASEAN region. With the beginning of construction work within the third quarter of 2022, the factory is scheduled to be completed by early 2024.
In this occasion, both parties have also exchanged views on further business opportunities and investment in Thailand’s other targeted industries in which Foxconn have expertise. In particular, the investments in the smart electronics, semiconductors, as well as the manufacturing of various components which are the upstream industry of electric vehicle production. Having responded to the government policy and its direction to promote electric vehicles in Thailand, this joint effort also drives the country to further achieve a low carbon society target. In addition, this partnership will help prepare and develop the skilled labors for the future-oriented industries especially in electronic component while providing advanced technology solutions to cover all levels, which will also support the direction of the industry towards sustainable innovation of the future.
Volvo has vowed an aggressive marketing plan this year as the Swedish automaker launches Southeast Asia’s first Volvo Studio.
According to Chris Wailes, managing director of Volvo Car (Thailand), the Kingdom’s automotive industry is on the upswing thanks to exponential growth of the electric vehicle (EV) market. He promises bold plans for the country over the next few years, with all marketing efforts focusing solely on Volvo EVs and plug-in hybrids.
He said the company intends to release a new EV model every year for the next four years.
In his opinion, EV production and delivery for Thailand will suffer no direct impact from the Russia-Ukraine conflict either this year or next. However, some issues with shipping remain, which the company is closely monitoring.
To support its aggressive marketing, Volvo has opened Volvo Studio Bangkok, Southeast Asia’s first “brand experience centre”, where customers can learn about the iconic Swedish vehicles. The location also serves as a showcase for Volvo’s new technology, such as batteries and integrated software that works with Google Maps.
Wailes said the centre is not a showroom for selling cars but a space to explore Volvo vehicles and technology. The 226-square-metre Volvo Studio Bangkok is located on the third floor of Iconsiam on the Bangkok riverside.
“We believe the opening of Volvo Studio Bangkok will change how people think about viewing a car,” said Wailes. The choice of Thailand’s capital for the first Volvo Studio in the region was testament to the Kingdom’s significance as a market in Southeast Asia as well as Volvo Car’s success here, he added.
Aside from the showcase area, the studio has a café and bar as well as a multipurpose area for customers to hang out. The location can be used to meet up with friends or to attend regular Studio events such as mini-workshops, which Volvo plans to hold at least three times per month.
Pattarapong Ahapalasiri, head of Commercial Operations, Volvo Cars (Thailand), added that customer feedback on Volvo’s sales of 100-per-cent EV cars has been positive.
Volvo has suspended sales of all-electric vehicles in order to complete remaining orders this year. He predicted the next round of orders would be opened in Q4.
Although the global economy has been slowed by high inflation, Pattarapong believes that Thailand’s EV market – particularly the premium segment – can continue to grow. Sales growth of Volvo EVs should match the low double-digit rate seen last year, he said.
Thanomsak Santanaprasit, head of Business Development and Customer Experience, added that beginning next month, Volvo will upgrade the battery system used in all of its plug-in hybrid models, allowing the cars to travel faster and further. This would be another exclusive technology experience for Volvo customers only, he boasted.
SBP Digital Service Co., Ltd., (SBP), which is a data management and technology service provider under the Boon Rawd Supply Chain Company Limited, partners with Alcatel-Lucent Thailand (Alcatel), leading communications and network equipment provider from France, to elevate its management services by bringing in world-class network equipment to provide complete services for both medium-sized clients to large-sized clients to become the leader in full data management service in Thailand.
Mr Piti Bhirom Bhakdi, CEO of Boon Rawd Supply Chain Co., Ltd., reveals that there is a massive need for IT solutions providers as businesses are transforming digitally rapidly. The cloud service enables clients to access their system anywhere and anytime, depending on their business size, along with data integration for emerging services for the future, enterprise software, and resource management system software for the company. Every solution is key to identifying business directions. It will increase efficiency and development while reducing duplicated work processes by managing internal resources using data from different departments and making a complete IT system to help solve business needs. Furthermore, excellent data management and storage will increase business capabilities, allowing a more seamless and sustainable transformation to the digital age.
Boon Rawd has been a true champion of using technology and IT solutions as a constant driver of its businesses. SBP Digital Service Co., Ltd., or SBP, is a data management and technology service provider which supports the companies under Boon Rawd, such as the core business like food and beverage or real estate business in Singha Estate. The groundwork in information, human resource management, and data analysis software has helped its companies make the most efficient decisions.
This strategic coalition will bring out the best of these two companies to propel their offerings and allow consumers to manage their data efficiently. SBP Digital Service Co., Ltd., or SBP, will bring expertise and experience in IT solutions service provider, including computer software like infrastructure systems, storage, resource management, data analysis, and management, to help drive the client’s business forward.
While Alcatel-Lucent, who is the leading communications and network equipment provider with over 100 years of experience and secure network safety, will provide hardware systems for SBP, which aims to become the most complete IT solutions provider in Thailand.
This partnership will allow SBP Digital Service Co., Ltd., to develop complete data management services with world-class software and hardware suited for digital transformations. Integrating data storage and management services will unlock new potential for clients to make the most out of their data in terms of analysis and communication to their customers faster and more efficiently.
The precise data management system will elevate and create better standards and practices within the organization. System management, information analysis for business strategy consulting, business development through technology, information safety, and system setups with network equipment are one of the complete services that SBP can provide to clients. The company is ready to support data management in every business sector, from the government to the private sector of all sizes, from SMEs to leading organizations.
BTS Group promotes diversity in the organization by allowing every employee to participate in all aspects equally, with an aim to become a Borderless Transform Solutions organization.
Accelerate blue carbon study and support Koh Mak Low Carbon Destination as part of the “Bangchak WOW” Socio-Environmental Development Model
As the “Net Zero” target or the net zero emission of Green House Gasses that various countries and organizations have announced to address global warming, and Thailand setting the Net Zero target for 2065, Bangchak Group announced their Carbon Neutrality by 2030, and Net Zero by 2050, committed to jointly drive the country towards a low-carbon society with the BCP NET plan, most recently signing an MoU for the development and promotion of the sustainable Koh Mak – Low Carbon Destination, Amphoe Koh Kood, Trat Province in cooperation with The Designated Areas for Sustainable Tourism Administration (DASTA) (Public Organization), Kasetsart University – Faculty of Fisheries, Koh Mak Subdistrict Administration Organization (SAO), Baan Ao Nid Integrated Agricultural Community Enterprise, witnessed by the Thailand Greenhouse Gas Management Organization (Public Organization), as part of the Group’s ongoing nationwide “Bangchak WOW” Socio-Environmental Development Model.
Chaiwat Kovavisarach, President and Group Executive Chief Officer, Bangchak Group stated that “the Global Warming Crisis is a critical issue for every country in the world, no less than any economic crisis. Having joined the World Economic Forum 2022 in June at Davos, Switzerland, world leaders discussed three main issues, namely the energy crisis from the Russo-Ukrainian War, the resulting impending good shortage, and inflation. Additionally, garnering much interest, Energy Transition towards clean energy centered on the critical Green Economy, of which Bangchak Group is ready to drive the development of the Low-Carbon Society with the BCP NET Plan comprising 4 dimensions in order to achieve organizational Carbon Neutrality by 2030 and Net Zero by 2050 emphasizing tangible processes and long-term results.
B = Breakthrough Performance, emphasizes high quality production processes, efficiency enhancements for low carbon emissions and environmental-friendliness, such as using technology and fuels that reduce Bangchak refinery’s carbon emissions, opening Net Zero service stations, using electricity from energy storage (batteries) from BCPG Green Energy Business, etc.
C = Conserving Nature and Society, promoting ecological balance and linkage towards a low-carbon society through natural carbon sequestration, emphasizing the cultivation of carbon sequestration through two ecosystems namely 1) Forest Ecosystems (Green Carbon) such as reforestation campaigns with the Royal Forest Department, and tree-planting in company operations such as in BCPG power plants etc. and 2) Marine Ecosystems (Blue Carbon) from mangroves and seagrass such as Mangrove Reforestation with the Department of and Coastal Resources, sponsoring Kasetsart University – Faculty of Fisheries’ Feasibility Study of Seagrass GHG and Carbon Sequestration along Koh Mak and Koh Kradat Coral Reefs etc. This also includes employee carbon credit evaluation skill development in collaboration with various multi-dimensional partners to reduce carbon footprint and environmental impact.
P = Proactive Business Growth and Transition, transitioning business towards clean energy and the Net Zero target through technology for sustainable growth, increase revenue from Green Businesses, emphasizing new investments that reduce GHG emissions from business operations, study technologies that foster low-carbon businesses such as Blue/Green Hydrogen, low-carbon fuel alternatives such as Sustainable Aviation Fuel (SAF) or Green Diesel, Carbon Capture and Utilization and Storage technology, and Carbon credit trading business to promote low-carbon culture. Green Businesses account for about 40% of Bangchak Group EBITDA, which is expected to grow to at least 50% by 2030.
NET = Net Zero Ecosystem, creating an ecosystem that accommodate the Net Zero target such as BFPL’s fuel transportation business, providing low-carbon fuels, offering the EV-bike rental platform Winnonie, establishing Carbon Markets Club to promote carbon credit trading, joining in setting up the Syn Bio Consortium, fostering organizational low-carbon culture through various awareness campaigns such as “Bangchak 100X Climate Action: All Hands On Board”, as well as waste management campaigns with customers and consumers such as “Cups for Saplings”, “Conserve & Share for Happiness” and “Mobile Refused Waste” campaigns etc. This also includes educating and communicating with business stakeholders such as suppliers resulting in a Sustainable Supply Chain, leaving no one behind.
Regarding the signing of this memorandum of understanding for the Development of Koh Mak Low Carbon Destination, Bangchak Group is delighted to support Koh Mak, which is the first targeted area of the Low Carbon Destination campaign in Thailand initiated by DASTA and the commitment to nature and environmental conservation of the local community, considered a national prototype in mitigating global climate crisis, by supporting Kasetsart University’s Faculty of Fisheries in pioneering Thai Blue Carbon study on the carbon sequestration of seagrass along the Eastern region coral reefs.
This natural carbon sequestration by seagrass is receiving attention from around the world, with the International Union for Conservation of Nature (IUCN), last year, reporting that seagrass is the only plant that is completely marine, making it 7-10 times better for carbon sequestration and storage than terrestrial forests. Moreover, Bangchak Group also have other initiatives to promote Koh Mak as low carbon destination such as introducing Winnonie trial runs to local business operators with the help of the Koh Mak’s SAO, and providing various tools, such as gloves and shirts, produced from recycled PET bottles to Trash Heroes Koh Mak volunteers for their routine beach cleanups and the Baan Ao Nid Integrated Agricultural Community Enterprise team for their seagrass conservation and rehabilitation activities, as well as studying collaborative opportunities such as Net Zero Schools power by Clean Energy etc.”
Signatories are Chaiwat Kovavisarach, President and Group Chief Executive Officer, Bangchak Group, Group Captain Athikun Kongmee, Director-General of the Designated Areas for Sustainable Tourism Administration (Public Organization), Assistant Professor Suriyan Tunkijjanukij, Dean of the Faculty of Fisheries, Kasetsart University, Noppadon Sutthithanakul, President of the Baan Ao Nid Integrated Agricultural Community Enterprise, Koh Kood, Trat Province, and Nol Suwatjananon, Koh Mak Subdistrict Administration Organization, witnessed by Kiatchai Maitriwong, Executive Director, Thailand Greenhouse Gas Management Organization (Public Organization).
Assistant Professor Suriyan Tunkijjanukij, Dean of the Faculty of Fisheries, Kasetsart University stated that “The Blue Carbon Project of seagrass ecosystems around Koh Mak – Koh Kradat led by Asst. Prof. Thon Thamrongnawasawat, Deputy Dean of the Faculty of Fisheries – Kasetsart University, began the investigation using sophisticated technology, including satellite data and utilizing various drones for aerial investigations, as well as field studies and dives to evaluate the state of the area, evaluating a total of 8 areas around Koh Mak/Koh Kradat and classifying the areas into three main groups, and five subgroups. The seagrass to the west of Koh Kradat was evaluated to have the highest Blue Carbon potential, prompting researchers to conduct a detailed study, mapping the spread of four species of seagrass in the area, including large algae species, such as Sargassum, Sea Grapes, coral etc. before investigation carbon sequestered on the seafloor using standard international methods in order to compare with other international studies (IUCN, 2021).
The study found that seagrass is very complex, expected to be a good carbon sequester, but will require more time for detailed evaluations. Moreover, compared to past data, it was found the area of seagrass was highly pristine, with not significant effect from human activity, reflecting the ongoing resolute commitment to marine conservation of the Koh Mak local community. The pristine conditions are conducive to long-term carbon sequestration, critical to Thailand’s low-carbon economic plan. Moreover, the area of seagrass was found to host a highly complete marine biodiversity including horse crabs, Pen Shells, and more than 20 species of fish supporting local fishermen and the tourism. The next step will be the evaluation of carbon sequestration/storage and additional evaluations, including planning the cultivation of seagrass using various techniques to maximize yields and minimize natural disruptions.”
Group Captain Athikun Kongmee, Director-General of the Designated Areas for Sustainable Tourism Administration (Public Organization) (DASTA), stated that DASTA is delighted to have the support of the private sector like Bangchak Corporation Public Company Limited, in promoting and developing “Koh Mak”, Trat Province, a DASTA designated area for sustainable tourism, into a Low Carbon Destination by reducing carbon emissions from tourism activities relative to other destinations and elevating Koh Mak to a prototype Circular Economy destination with a waste management strategy for Thai tourism.
“DASTA operations on Koh Mak is centered on reducing carbon emissions generated from tourism, as well as identifying carbon sequestration strategies to offset emissions from tourism activity on Koh Mak based on straight-forward approach of prioritizing carbon sequestration at its source.”
The cooperation with Bangchak and the Faculty of Fisheries, Kasetsart University Study of Blue Carbon in Seagrass around Koh Mak-Koh Kradat is critically important because seagrass can sequester and store carbon up to 7-10 times that of terrestrial forests. Tourist participation in the conservation and expansion of seagrass will greatly benefit the environment and ecosystem of Koh Mak, in addition to its ability to sequester and offset carbon emissions.
As part of the Circular Economy approach, DASTA is currently conducting the “Koh Mak Tourism Waste Management” campaign to foster effective waste management on Koh Mak by first reducing the import of products that produce waste, and emphasizing circular waste management to maximize its usefulness, and ultimately to integrate with proper waste management systems with the goal of promoting Koh Mak into a prototype model for sustainable waste management.
Chaiwat stated that “Supporting Koh Mak Low Carbon is part of the cooperation with various local organizations and communities for the socio-environment development of the Group’s surrounding operational areas and other areas across the country through the Bangchak WOW Model (Well Being Improvement/Oxygen Enhancement/Water Management) to participate in the improvement of quality of life such as knowledge development for professions, employment opportunities in service station and Inthanin coffee shops, community economy initiatives such as community kitchens, Pun Suk Market, Clean Service, COVID-19 Crisis campaigns to reduce economic impact and support public health operations over two years, as well as waste management and the expansion of community product channels through service stations of Inthanin etc.”
O – Oxygen Enhancement (air quality improvement) emphasizes the importance of green spaces and carbon capture such as the Virtual Trees campaign whereby Bangchak members can contribute points to the cultivation and conservation of real trees, reforestation to combat PM 2.5, Reforestation according the Royal Approaches, and the OUR Khung BangKachao – conservation and development of green spaces with Chaipattana Foundation etc. Moreover, this also includes commitment to evaluating and reduce greenhouse gas emissions from the organization’s various activities and products, eliminating waste landfills, producing dust-reducing fuel or Euro V low-sulfur Diesel to reduce PM2.5 during the end of each year etc. Bangchak Refinery is accredited with the GI5 from Green Industry Level 5 (Highest) evaluation by the Ministry of Industry.
W – Water Management emphasizes the importance of water management, examples such as Water Efficiency Enhancement project, Bangchak Refinery Water Footprint evaluation, buying used cooking oil for clean waterways including mitigating adverse health effects from repeated vegetable reuse. It is currently planning and conducting preliminary studies for the “Clear Clean Canal” campaign to improve the water quality of canals surrounding Bangchak refinery, expected to be completed by the end of 2022” Chaiwat concluded.
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