B.Grimm acquires major stake in Angthong Power
B.Grimm Power Plc has acquired a 70% stake in Angthong Power Co, a gas-fired power plant under the small power producer scheme, for 2.52 billion baht.
The company purchased the stake in the power plant, with a 123-megawatt capacity, from its Redman Pacific Holding Pte through wholly owned subsidiary B.Grimm Power Chonburi Co.
Chief executive Preeyanart Soontornwata said that once the deal is completed, the company's generating capacity based on ownership will rise to 3,019MW.
The co-generation Angthong Power, which has run the power plant since 2016 in Chaiyo district of Ang Thong province, sells 90MW of its power capacity to the state-run Electricity Generating Authority of Thailand under a 25-year power purchase agreement (PPA).
Mrs Preeyanart said B.Grimm's board of directors approved the asset purchase deal. She said B.Grimm has several projects in development that will raise total power capacity to 3,547MW from 47 projects across Asia-Pacific by the end of 2020.
B.Grimm's long-term target is to expand generating capacity to 5,000MW by 2022.
Mrs Preeyanart said concerns regarding the coronavirus pandemic among the public will have no negative impact on the company because the PPA has a fixed return. This includes conditions under the "Take or Pay" concept for fossil-fired power plants with state buyers.
The firm also generates power from renewable energy with a feed-in tariff or bonus tariff from buyers.
B.Grimm has private PPAs and steam purchase agreements with 130 firms in industrial estates to sell power directly to private firms outside the state grid, accounting for 25% of total revenue last year.
This year the company expects revenue to grow by 10-15% from 44 billion baht last year, thanks to new capacity in operation from a wind power farm in Mukdahan with 16MW and a solar power farm in Cambodia with 39MW.
B.Grimm is conducting due diligence on further asset purchases, mostly in Thailand with one in Malaysia.