Thachang Green Energy (TGE), an SET-listed biomass power plant developer and operator, will allocate almost 5 billion baht to expand its business over the next two years, with most of the budget supporting its five new waste-to-energy power plant projects.
The development cost of each project will be 200-500 million baht.
The company has already signed power purchase agreements on three projects with the Provincial Electricity Authority, the state power distribution arm, said Seubtrakul Binthep, TGE's head of strategy and business development.
The five power plants, which will use community waste as fuel, will be built in areas under the supervision of local administrative bodies in Sa Kaeo, Ratchaburi, Chumphon, Samut Sakhon and Chai Nat.
The company is in the process of building the plants, with total installed electricity generation capacity of 39.9 megawatts.
They are scheduled to start commercial operations between 2025 and 2026.
Mr Seubtrakul expects the company's total revenue, including earnings from the five power plants and carbon credit trade, to exceed 2.5 billion baht in 2026.
In 2023, its revenue is estimated at 1 billion baht, an increase from 938 million baht last year.
From January to September this year, TGE posted revenue of 699 million baht, an increase of 0.5% from 696 million baht in the corresponding period last year. Net profit rose by 23% to 193 million baht, up from 156 million baht.
The higher profit has been attributed to greater sales of electricity and lower production costs. The cost of raw materials per 1 megawatt of electricity fell by 15.7%.
TGE plans to join an auction for two community waste-fired power plants in Prachin Buri and Ubon Ratchathani.
The company aims to increase its total capacity to more than 200MW, up from 30MW at present, by developing new projects and acquiring energy assets.
At present, the company uses biomass and waste as fuel for power generation. It plans to invest in other types of renewable energy, including solar and hydrogen energy.
Mr Seubtrakul said TGE aims to benefit from the state's promotion of renewable energy under its power development plan.