Thailand
October 2, 2007
 

Tesco Lotus has switched its entire truck fleet to using B5 biodiesel, aiming at cutting its fuel costs by 5% and reducing carbon-dioxide emissions by three tonnes a year."From Oct 1, we have become the first and largest retail fleet using B5 biodiesel, with our 400 diesel-powered trucks in Thailand," said chairman Sunthorn Arunanondchai.

 

The switch is made possible through collaboration with Tesco Lotus's exclusive logistic suppliers, Linfox Transportation (Thailand) Ltd and Eternity Grand Logistics Plc.

 

Linfox provides 320 trucks and Eternity Grand Logistics 80 trucks, with Tesco Lotus paying all the fuel bills.

Dr Sunthorn said the fleet currently used 20 million litres of diesel each year for a total distance travelled of 73 million kilometres. The move to B5 biodiesel would decrease its carbon footprint by three tonnes of CO2 each year, as well as offer a 5% saving on its fuel bills, which would be passed on to customers.

 

Currently, Tesco Lotus is constructing its first biodiesel plant at its second energy-saving prototype branch in Salaya, Nakhon Pathom.

 

Used cooking oil at the new branch would be recycled into a raw material for biodiesel production and all output would be utilised to generate electricity for the branch.

 

Darmp Sukontasap, senior vice-president for Tesco Lotus, said the biodiesel plant would help cut down electricity bills by 30%, or 15 million baht per year. It is scheduled to be ready for operation next year.

The investment cost of 200 million baht would finance the construction of the plant and the energy-saving system at the Salaya branch, which was the second prototype after the Rama I branch, said Dr Darmp.

 

The Salaya branch would boast a higher energy-efficiency rate, at 30% compared with 12-15% at the Rama I branch.

 

New branches will also be required to show further improvements of the energy efficiency rates, which would be audited every three months.

 

At present, Tesco Lotus is in the process of measuring the CO2 footprint of more than 35,000 products sold at the stores. A carbon footprint is the total amount of CO2 and other greenhouse gases emitted over the full life cycle of a product or service, usually expressed in grammes of CO2 equivalent.

 

Dr Darmp said the energy-utilisation information of each product supplied by Tesco Lotus would be labelled in the near future to offer an option to consumers who are concerned about the environment.

 

Tesco Lotus runs 380 branches across the country. Of the total, 280 are Tesco Lotus Express and the rest are hypermarts, compact hypermarts and markets.

 

For its future plan, "I have no idea how many more branches would be opened next year because of uncertain progress of the Retail Business Act," said Dr Darmp.

 

Barring complications from the revised law, Tesco Lotus plans to open 120 new branches next year, of which 80 would be Lotus Express, said Dr Darmp.

 

Tesco Lotus's sales revenue in the first half of the year expanded by 3-5%, lower than forecast, said Dr Darmp.