SET-listed PTT Plc, the national oil and gas conglomerate, plans to increase its budget for R&D activities from 1% of annual net profit to 3% by 2021.
President and chief executive Chansin Treenuchagron said 1% of PTT's net profit has been allocated to R&D for the past two decades, but the results have not been exploited for commercial purposes.
The company is changing its R&D direction to cope with disruptive technology in the energy sector.
"The higher budget means PTT is keen on efficient spending for future R&D projects, and we expect the research to be used commercially," he said.
Before promotion to the top position at PTT, Mr Chansin was former chief technology and engineering officer in 2017. He set the direction for R&D activities in that capacity.
Most of the projects the last two decades focused on finding cleaner fuels; more efficient lubricants; gasohol E10, E20 and E85; biodiesel B3, B5, B7 and B10; and other raw materials to make fuels such as algae and biofuel.
"Renewable energy technology is fast approaching, as power is already generated from renewable resources, with energy storage the latest trend," said Mr Chansin.
"Rapid changes in chemical and petrochemical materials are needed for our R&D plans."
He said R&D will focus not only on oil and petrochemicals, but also medicine, multi-purpose bacteria, enzymes and fertiliser.
PTT's latest R&D products for commercial sale are tailor-made chemical fertilisers and energy storage, but Mr Chansin did not reveal further details.
"The new fertiliser is customised according to the physical and environmental needs of each plantation," he said.
"PTT's energy storage is aimed at trimming prices by 30-40% lower than traditional energy."
The PTT Research and Technology Institute (PTT RTI) in Ayutthaya is the company's laboratory to support all R&D activities, specifically to raise capacity in petroleum and petrochemical fields.
The company invested 1.46 billion baht in PTT RTI, which was built on 118 rai.
The compound has facilities for fuels and lubes, lab buildings for analytical processes, petrochemicals, environmental results and engine tests.
Researchers and officers can conduct a full spectrum of R&D projects to support all PTT units.
PTT also announced a two-month test run of biodiesel B8 and B10 for pickups, which is scheduled to start next week.
The result should offer crucial information for the new administration to determine whether B8 and B10 can be used for the crude palm oil surplus.
