The Federation of Thai Industries (FTI) is investing $1.9 million (€1.4 billion) in pilot biomass gasification project in Saraburi, one of Thailand's central provinces.
"We have already chosen a company to jointly invest in the project. The construction will take around one year to complete," said Pichai Tinsuntisook, chairman of the FTI's renewable energy industry club, in an interview with the Bangkok Post.
"At present, there is no small-scale gasification plant that can sell power with the efficiency up to standard," he told the newspaper.
The new plant is has been designed to use renewable energy technology from Spain. Pichai said the facility should begin generating electricity by the end of the year.
He went on to say private entities stepped up and invested in the project because of concerns that the Thai government doesn't really understand renewable energy and has thus far been largely unable to help develop it.
The government needs to gain an understanding with farmers and communities to make the project a success, he said.