Energy Absolute introduces sustainable business management model
Energy Absolute Pcl (EA), the first Thai energy innovation firm, is introducing a new business model under the corporate social innovation (CSI) concept to develop the organisation to sustainable integrated management. It is pioneered with production innovation prototype, PCM (Phase Change Material) from crude palm oil, for which it is seeking a global patent. It aims to have a production capacity of 130 tonnes a day within 2020 and expects to have additional revenue of more than Bt800 million
The company also has transformed the Thai palm industry with “Palm Yang Yuen” (sustainable palm) application, the world’s first online platform with blockchain technology to verify all trading transactions, which make it transparent, fair and can return extra profit sharing to suppliers including palm farmers.
This innovation is raising standards of production, transaction and quality to add value to Thai palm to become an innovative product for export to the global market.
Amorn Sapthaweekul, deputy CEO of EA, said that the company operates a green energy business and energy innovation technology for the future through various businesses comprising solar-wind farm, lithium-ion battery factory, biodiesel from palm oil, electric vehicle (EV) car and ferry produced by Thai and EV charging stations, focusing on business related to the need of energy in the future and energy efficiency for the best benefit.
The company emphasises intensive research and development in technology and invented new innovations to extend and add value to existing businesses, he said. The company has implemented the concept of CSI.
“We want to share our knowledge, innovation and technology we use in our organisation for the benefit of society and relevant communities to grow and be strong for mutual benefit in the long run.
“It is a foundation leading to community development in all dimensions of sustainability eventually, pioneered with PCM or Phase Change Material produced from crude palm oil for the first time in the world. With blockchain innovation, it develops an online platform to record, verify and facilitate additional profit-sharing. This is the company’s CSI prototype with an investment budget of more than Bt1 billion to solve the price and volume fluctuation of palm. It will also add value to palm, boosting the income of farmers and stakeholders in the supply chain. PCM is a substance with a high heat of fusion which, melting and solidifying at a certain temperature, is capable of storing and releasing heat. Heat is absorbed or released when the material changes from solid to liquid and vice versa. PCMs are classified as latent heat storage units and applied in many industries such as building and construction, textile, packaging and logistics.
PCM developed from crude palm oil base or bio-PCM is a new innovation, created for the first time by EA, which has put its PCM under the patent registration process in the global market. The PCM market size is estimated at around US$1 billion, which is expected to triple in the next five years. EA’s PCM production plant is in Rayong with a production capacity of 130 tonnes a day. The first phase of production will start in the second quarter of this year. All the output will be exported to Germany and Japan to be used in construction of buildings and residences.
“This is a significant role in energy conservation as PCM can provide a more stable temperature to reduce energy consumption from air-conditioners or heaters. By the end of the year, revenue from PCM will be around Bt800 million, accounting for 3 per cent of the company’s total revenue. The second phase of PCM production line will be completed by the end of the year and the company aims to expand production capacity to 1,000 tonnes a day within five years.
EA has also transformed the Thai palm industry with the launch of ‘Palm Yang Yuen’ (sustainable palm) application, the world’s first palm platform with blockchain technology, to help farmers and related partners.
They can register by entering personal information, transaction data and quality of raw materials for examination. Additional benefits will be shared if the raw materials meet quality standards to be produced as high-quality PCM. This will be a key driver to promote farmers to produce good-quality raw materials. Consequently, pricing will be led by market mechanism with the practice of transparency which can be examined in every process.
Farmers will get paid quickly through money transfer to their registered account. The application can help prevent trading in smuggled palm and also can be applied widely.
