SET-listed Banpu Power, the power generation arm of energy conglomerate Banpu Group, is keen on acquiring more energy assets in the US to boost revenue from growing energy demand in the country.
The company is in talks with several owners of power plants, with combined-cycle technology, which are ready to supply electricity to customers, said Issara Niropas, chief executive of Banpu Power.
Combined-cycle technology uses both gas and steam turbines to generate electricity.
Banpu Power also wants facilities which release low levels of carbon dioxide.
The company prefers power plants in the merchant market where buyers and sellers can trade electricity freely to those supplying electricity to thegovernment under power purchase agreements, said Teerapat Wongraveekul, chief financial officer of Banpu Power.
Key merchant markets in the US include the Electric Reliability Council of Texas Corporation and PJM Interconnection. PJM refers to Pennsylvania, New Jersey and Maryland.
According to Banpu Power, the power generation capacity in the US is expected to increase to 2,400 gigawatts within 2050, up from 1,200 GW in 2022.
The company is allocating a budget worth US$500-700 million between 2024 and 2026 to grow its business, with most of the money to fuel the investment in the US, said Mr Issara.
Up to 90% of the budget is allocated for acquisition of power plants, with combined-cycle technology, while the remaining 10% is for projects related to renewable power, an energy storage system, carbon capture technology and new alternative fuels like hydrogen.
“The renewable energy sector in the US is growing significantly due to declining costs, state subsidies and an increase in battery installations,” said Mr Issara.
Mr Teerapat said Banpu Power is able to raise more funds to support its business expansion because its debt-to-equity ratio stands at 0.5 times, enabling the company to raise 30 billion baht.
Last year, Banpu Power bought Temple II gas-fired power plant in Texas for 16 billion baht, following the purchase of the Temple I power plant, also in Texas, in August 2021.
Both facilities use combined-cycle technology.
Also in 2023, Banpu Power, through its gas production arm BKV Barnet, developed its first renewable power generation facility in the US by building a 2.5-megawatt solar farm in Denton County, Texas.
The construction was completed and the facility has recently started operation.
