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ThaiBev Biogas Project
ThaiBev invests in clean energy markets with aiming to reduce CO2 emissions and build prosperity for the company and Thailand. We build sustainable markets for renewable energy and energy efficient solutions; advance energy access, improve lives and economic opportunities; and reduce climate and environmental damage.

ThaiBev has increased its use of alternative fuels by using by-products of the manufacturing process as fuel for further production. The Company focuses on and promotes the continual use of renewable energy. Already the Company has installed biogas production facilities at 5 distilleries, Fuengfuanant Co., Ltd., Kaenkwan Co., Ltd., Nateechai Co., Ltd., Athimart Co., Ltd., and S. S. Karnsura Co., Ltd. Main purposes of the biogas projects are for treatment of organic wastewater from distillery, Capture of biogas for use in onsite heat generation, Reductions of atmospheric emissions of the greenhouse gas (GHG); and, use of the CLEAN DEVELOPMENT MECHANISM (CDM) process to offset some of the financial and technical risks associated with the investments.

The project delivers reductions of anthropogenic GHG emissions in two ways;

(i) Capture and combustion of methane (CH4) which would otherwise result in direct atmospheric emissions from anaerobic degradation of organic wastewater in an open lagoon system; and

(ii) Displacement of fuel oil for heat generation in the distillery. The biomass energy renewed will be used in distilleries in 2 parts: the first as heat energy applied in distilleries, and the remaining part will be used to produce electricity to be sold to the Provincial Electricity Authority.

In 2017, ThaiBev primarily identified and measures both externally positive and negative impacts on environment and society by estimating the profit and loss in the monetary value of the “Biogas project”. For the initial case study, we selected and applied natural and social capital protocol approaches to measure value of three environmental externalities and three social externalities to two distilleries; S. S. Karnsura Co., Ltd in Ubon Ratchathani and Athimart Co., Ltd. In Burirum.

The purpose of this valuation is to determine the:

  • 1) Value of avoided costs to GHG emission

  • 2) Value of avoided costs to society (local community, local employee)

The Four Stages of the Social and Human Capital Protocol

For the environmental externalities, one positive impact is as follows:

Positive Impact:
Greenhouse Gas emission reduction from Biogas production.
For social externalities, one positive and one negative are as follows:

Positive Impact: Decent & productive job for local employees.

Negative Impact: Risk for employee Safety & Wellbeing when working in the plants.

Impact Pathway
1. GHG emission reduction from Biogas production.

Input Business Activity Output Outcome External Impact
Vinasse Biogas Productivity
  • Biogas
  • Electricity
GHG emissions reduction
  • reduce in GHG effects
  • maintain sea-level
  • No natural resource impacts

  • Carbon price reduction
  • Minimize global warming

Indicator: Reduce GHG emission

How to value and measure the impact
The Environmental Cost of Carbon monetizes benefit associated with a reduction in carbon emissions for 92,945 tonnes of CO2e in a given year. There will be no impact on agricultural productivity, human health, property damages from increased flood risk, and the value of ecosystem services due to climate change. An analysis of biogas production estimates Carbon price due to GHG

Emissions Reduction is at 11,618,125 THB for FY2017, using Singapore Carbon Tax of S$5/tCO2e.

Exchange rate: 1 Singapore dollar = 24 THB
Monetary value of ThaiBev's activity is 92,945 x 120 = 11,153,400 THB


Input Business Activity Output Outcome External Impact
Training courses for 80 Thaibev employees Employee who work in the 2 biogas plants 100% of employee participated in assigned training courses
  • 36 Production staffs

  • 28 Maintenance staffs

  • 10 Laboratory staffs

  • 6 Administrative staffs
Productive business activity Long-term earnings potential increase owed to educational or training programs provided
Indicator: number of productive local employee

How do we value the the productive employee impact?
We use “Stated preference” or asking our employees how much training course budget they want to receive for more productivity job. We found that:

1) The average cost of training course budget for Production staffs and Maintenance staffs is 50,000 THB per person per year.

2) The average cost of training course budget for Laboratory staffs and Administrative staffs is 30,000 THB per person per year.

Monetary value of long-term earnings potential increase owed to training programs provided is ((36+28) x 50,000) plus ((10+6) x 30,000) = 3,680,000 THB

3. Risk for employee Safety & Wellbeing when working in the plants

Input Business Activity Output Outcome External Impact
80 Thaibev employees Employees involved in accidents because of the biogas production Number and type of accident
  • 20 illness
  • 4 injuries
Harm for employees involved in accidents Wellbeing of employees
  • No Pain
  • No Physical limitations
Indicator: number and type of accident (illness, injury)

How do we value health impacts?
We use “Stated preference” or asking our employees how much they are willing to accept for a more dangerous job.

The average cost of illness is 25,000 THB per case, and the average cost of injury is 50,000 THB.

Monetary value of employee biogas project’s safety risk is (20 x 25,000) plus (4 x 50,000) = 700,000 THB

Impact Measurement & Valuation of Thaibev Biogas project

The primary measurement of true value was 98.78 million THB

  • This valuation is a pilot/initial study, which is not a full scope study.

  • This initial study uses both a primary and secondary data to be as proxies and assumptions to estimate the value of each externality and the True Value.


GRI 102-1, GRI 102-2, GRI 102-3, GRI 102-4, GRI 102-5, GRI 102-6, GRI 102-7, GRI 102-8, GRI 102-9, GRI 102-10, GRI 102-12, GRI 102-14, GRI 102-18, GRI 102-40, GRI 102-42, GRI 102-43, GRI 102-44, GRI 102-45, GRI 102-46, GRI 102-47, GRI 102-48, GRI 102-49, GRI 102-50, GRI 102-52, GRI 102-53, GRI 102- 54, GRI 102-55, GRI 102-56, GRI 103-1, GRI 201-1