TPCH wrangles potential deals
MAI-listed TPC Power Holding (TPCH), a business arm of engineering and construction service provider Thai Poly Cons (TPC), is planning more asset acquisitions of biomass-fired power plants to expand its renewable power capacity.
TPCH board chairwoman Kanoktip Chanpalangsri said yesterday her company is negotiating 2-3 deals for plants, none of which have been built, so the company needs to raise funds for their development.
She did not provide details on the power plant licence holders and locations, saying only the negotiations should be concluded in the fourth quarter this year.
Most of the seven biomass power plants TPCH operates, boasting a capacity of 83 megawatts, are located in the South, which has plenty of fuel from rubber and palm materials.
The firm also owns four power plants with a total capacity of 36MW under construction. The plants are scheduled to start operations between this year and 2022.
The ongoing deals are part of the company's three-year plan to achieve total power capacity of 200MW based on biomass power plants, as well as 50MW from its waste-to-energy power plants by 2023.
TPCH operates waste-to-energy plants with a capacity of 9.5MW now.
Within the fourth quarter this year, Ms Kanoktip said, the company expects to open three biomass power plants. Operations were delayed because of lockdown measures.
The three plants, 98-99% complete, need foreign experts to audit power generation systems before a trial run and this final piece has been delayed during the lockdown.
She said the three plants -- two in Yala and another in Narathiwat -- will increase the company's total power capacity by 31% to 109MW.
The new capacity should bring more revenue to the company next year, leading to a big jump in its business performance.
TPCH was recently selected by Nonthaburi Provincial Administration Organisation to be the developer and operator of a 1-billion-baht waste-to-energy project, with a capacity of 9.5MW, at a landfill in Nonthaburi's Sai Noi district.
Selection criteria was based mainly on participants' qualifications, not competitive bidding.
The approval was given under a quick-win concept, initiated by the Energy Ministry, which wants to promote fast disposal of waste countrywide by turning it into refuse-derived fuel, then selling the electricity to the government under a power purchase agreement.