Thachang Green Energy Plc (TGE), a biomass power plant developer and operator, is planning to increase its long-term revenue by trading more carbon credits from its facilities in the southern province of Surat Thani.
A 9.9-megawatt power plant, run by subsidiary Thachang Power Green Co, has credits amounting to 33,964 tonnes of carbon dioxide equivalent per year, certified by the Thailand Greenhouse Gas Management Organization, said Sakda Siriphatsophon, chief executive of TGE.
The company is asking the organisation to certify the carbon credits of subsidiary Thachang Bio Power Co, which operates a 9.9MW power plant.
The process is expected to be completed in April next year.
Carbon credits refer to the amount of carbon dioxide emissions reduced by environmental projects, including clean energy development. The amount can be sold to other companies to offset carbon dioxide they release into the air.
Mr Sakda said carbon credits will be traded on a platform developed by the greenhouse gas organisation and the Federation of Thai Industries.
Thachang Power Green uses agricultural refuse as fuel for its electricity generation.
The trading period lasts for 14 years, so the sales offer another long-term revenue source in addition to the power tariff granted for the electricity Thachang Power Green sells to the Provincial Electricity Authority, the state power distribution arm.
TGE also operates its own 9.9MW biomass power plant and is aiming to participate in the Renewable Energy Certificates (REC) scheme.
REC is an economic incentive aimed at encouraging power plant owners to produce electricity from clean fuel. Each REC, which certifies that the bearer generates one megawatt-hour from renewable energy resources, can be traded as an energy commodity.
TGE and its subsidiaries have a total of three power plants in Surat Thani, which is known as the Thai hub of palm plantations and palm oil processing.
The company participates in RE100, a global renewable energy initiative that commits its members to using 100% renewable energy.
More than 380 companies worldwide have joined RE100.
The Thailand Greenhouse Gas Management Organization is encouraging more firms to join the carbon credit trade in order to support state efforts to reduce emissions.