The sugar industry has long been a cornerstone of Thailand’s economy, but its production process is increasingly under scrutiny for its environmental impact.
As the country seeks to balance economic growth with sustainability, the sector faces mounting pressure to reduce pollution and align with global climate goals.
Thailand ranks as the world’s third-largest sugar exporter, trailing only Brazil and India. Each year, the country earns between 100-200 billion baht from exports to major markets including China, South Korea, and Indonesia.
This lucrative trade underscores the industry’s importance to the national economy, but it also highlights the environmental costs associated with large-scale production.
One of the most pressing concerns is the widespread use of burning methods in sugarcane harvesting. This practice releases fine PM2.5 particles into the air, contributing to haze and health problems across agricultural regions. At the same time, the industry’s logistics and operations add carbon dioxide emissions, exacerbating global warming.
Chalush Chinthammit, chief executive and president of Khon Kaen Sugar Industry Plc (KSL), says his company is determined to be part of the solution. He has pledged to support Thailand’s broader efforts to combat PM2.5 pollution and accelerate the country’s climate commitments.
The government has set a target of achieving net-zero emissions by 2050, 15 years earlier than previously pledged, and KSL aims to play a leading role in that transition.
BATTLING PM2.5
KSL is working closely with state officials to address the PM2.5 problem, much of which stems from the burning of cane fields.
Farmers often resort to burning because it is cheaper, faster and less labour-intensive than cutting fresh cane.
“The burning method is not labour-intensive. It can save costs. It is often used to facilitate harvesting when farmers do not use harvesting machines,” Mr Chalush explained.
But the consequences are severe. Burning not only worsens haze but also degrades soil and harms nearby communities. PM2.5 particles, which measure less than 2.5 microns in diameter, can penetrate deep into the lungs and cause long-term health damage.
To counter this, KSL has partnered with the Office of the Cane and Sugar Board (OCSB) under the Ministry of Industry to promote fresh cane harvesting. The company has set a target to reduce burned cane deliveries to under 10% by 2026, down from 14% last year.
Key strategies include promoting mechanical harvesting, offering higher prices for fresh cane, and providing subsidies of 30 baht per tonne to farmers who avoid burning, said Mr Chalush.
KSL is also collaborating with growers’ associations to improve harvesting tools and maximise transport efficiency.
The Agriculture and Cooperatives Ministry has reinforced these efforts by setting a national target to reduce agricultural burning by 15% this year.
Authorities have also banned imports of crops harvested by burning, particularly maize, from neighbouring countries to prevent cross-border pollution.
Deputy government spokeswoman Airin Phanrit noted that haze and wildfires remain a challenge during the 2025/26 production season.
Authorities plan to monitor hotspots and enforce penalties against violators, ranging from warnings and delays in issuing land-use documents to the revocation of land-use rights.
REFINING CLIMATE GOALS
KSL has accelerated its climate roadmap, pledging to reach net-zero emissions by 2050.
The company’s earlier “KSL Green Together” plan aimed for carbon neutrality by 2045 and net-zero by 2060, but management has decided to move faster.
“KSL has accelerated its roadmap by a full decade compared with earlier plans, aiming to demonstrate that the sugarcane industry is not a polluting ‘outlaw’ sector but one committed to aligning with global environmental trends,” Mr Chalush said.
The company reported a reduction of 227,514 tonnes of CO2 equivalent in 2024.
As Thailand’s fourth-largest sugar producer, KSL operates five factories across Khon Kaen, Loei, Kanchanaburi and Sa Kaeo provinces.
In 2025, the company processed 6.6 million tonnes of cane, representing a 22.6% increase from the previous year, thanks to favourable weather.
Of this volume, fresh cane accounted for 86%, while burned cane fell to 14%, said Mr Chalush.
Last year, KSL produced 42,000 tonnes of raw sugar.
USING CLEAN POWER
Beyond harvesting practices, KSL is investing in renewable energy to cut carbon dioxide emissions, said Mr Chalush.
The company is turning factory waste into fuel for power plants, using bagasse from sugar mills and wastewater from ethanol production.
Electricity generation is managed through its subsidiary, Khon Kaen Sugar Power Plant Co, which operates three biomass plants.
The first, located near the Khon Kaen sugar factory in Nampong, produces up to 30 megawatts, with 20MW sold to the Electricity Generating Authority of Thailand (Egat).
The second, in Kanchanaburi province, produces 90MW, with 30MW sold to Egat.
The third, near the Wangsapung factory in Loei province, has a capacity of 70MW, with 2.12MW sold to the Provincial Electricity Authority.
The plants also use biogas from wastewater fermentation to generate electricity and steam.
Biogas, which contains methane, can be fed into gas engines or turbines, making it a versatile renewable fuel.
KSL has registered its power plants and solar projects for carbon credit certification under the Thailand Voluntary Emission Reduction Program. More than 300,000 tonnes of CO2 equivalent have been certified as carbon credits, which can be sold to other companies to offset emissions, said Mr Chalush.
“Power plants are one of many projects helping the company achieve net-zero emissions by 2050,” he said.
PROMOTING BIOFUELS
KSL is also expanding into biofuels through BBGI Plc, a joint venture with Bangchak Corporation.
BBGI produces ethanol from molasses, a by-product of sugar production, which is blended with gasoline to produce gasohol. This reduces reliance on fossil fuels and supports Thailand’s energy transition.
The company is investing 2 billion baht in a project to convert wastewater into bio-liquefied natural gas (bio-LNG), a renewable alternative to fossil LNG. The initiative is being developed with Singapore-based Keppel and CleanEdge Resources, which specialise in waste-to-energy technologies.
Bio-LNG, also known as liquefied biomethane, is produced through the anaerobic digestion of biogas. It has the potential to replace fossil LNG in power generation.
BBGI plans to produce bio-LNG from wastewater and solid waste at its ethanol plants in Kanchanaburi and Khon Kaen provinces.
BBGI is also exploring algae-based sustainable aviation fuel in cooperation with the Ministry of Agriculture.
Microalgae, rich in lipids, which contain oils that can be converted into biofuels, could serve as a feedstock for next-generation biofuels, offering a pathway to greener aviation.