SET-listed TPI Polene Power (TPIPP), Thailand's largest waste-to-energy (WTE) project developer and operator by capacity, aims to slash coal usage next year as it targets 100% renewable fuel use by 2026.
The company expects to use 872,000 tonnes of coal this year to fuel its power plants in Saraburi, reducing the amount by more than half to 320,000 tonnes next year, said Pakkapol Leopairut, executive vice-president for accounting and finance.
No coal will be used in 2026, he said.
The move towards renewable energy started in 2022 under its "Mission to No Emissions" campaign. The company expects to spend more than 15 billion baht on the campaign.
TPIPP will replace coal with refuse-derived fuel (RDF), solar and wind energy, as well as heat from the cement production process at a factory run by parent firm TPI Polene, said Mr Pakkapol.
The proportion from RDF is set to increase to 74% of all fuel in 2026, up from 50% this year, while solar and wind energy will make up 18%, up from 11%. The remainder will come from heat, he said.
Mr Pakkapol said the company's power generation capacity is projected at 496 megawatts this year -- 150MW from coal and the rest from heat and renewable fuels.
TPIPP aims to boost its capacity by using more renewable energy. One project involves the construction of a WTE plant with a capacity of 9.9MW in Nakhon Ratchasima, scheduled to start operation in early 2026.
The company was awarded the right in 2021 to build an 8MW WTE plant in Songkhla province. TPIPP is awaiting a construction licence and expects to open the plant early next year.
Some 70% of its generated electricity is sold to the state grid, with 30% sold to TPI Polene under the independent power producer scheme.
Worawit Lerdbussarakam, vice-president of TPIPP, expects revenue to increase by 12% to 12.2 billion baht this year, up from 10.9 billion in 2023, despite the expiry of the adder tariff granted to its two WTE generation facilities, which reduces its revenue.
He attributed the increase in total revenue to a cost reduction programme and higher power demand.
In 2024, the company expects to reduce the production cost of RDF by 5-10% from 730 baht per tonne last year. TPIPP expects to trim the cost to 700 baht a tonne next year, said Mr Worawit.