SET-listed TPI Polene Power Plc (TPIPP), Thailand's largest waste-to-energy power plant developer and operator by capacity, is allocating capital spending worth almost 10 billion baht between the second half of this year and 2023 to develop two new facilities and use more refuse-derived fuel to replace coal, which is still used at some of its power plants.
The company will spend 4.8 billion baht of the budget to phase out coal usage and the remainder, which is set to be allocated next year, will be used to support new waste-to-energy power plant projects.
The shift toward refuse-derived fuel, also known as RDF, will prepare TPIPP for a carbon credit trade scheme, which is currently being revised by the authorities and the Federation of Thai Industries, said Worawit Lerdbussarakam, vice-president of TPIPP.
The company plans to replace coal with RDF at its two power generation facilities. Once the replacement is completed, they will generate an additional gross profit of 310 million baht per month, he said.
The move comes after coal prices surged 200% since the end of 2021 while the prices of RDFs have decreased, according to TPIPP.
At present, coal-fired power plants make up about half of the company's installed electricity generation capacity of 440 megawatts.
TPIPP expects to reduce the volume of electricity supply from coal to 190MW within 2024 and to zero within 2025.
The company plans to start construction of two new waste-to-energy power plants projects -- a 7.7MW plant in Songkhla and 9.9MW facility in Nakhon Ratchasima -- after being awarded licences from local administrative bodies.
TPIPP will participate in a new auction covering another four waste-to-energy power plant projects, each with capacity of 8MW. The auction is scheduled to be held within this year.
Pakkapol Leopairut, TPIPP's executive vice-president for accounting and finance, said the firm plans to increase its capacity to 530MW within 2024, up from 440MW at present. Most electricity will be produced by RDF-fired power plants and solar farms.