GPSC, Keppel establish district cooling venture
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GPSC, Keppel establish district cooling venture

Mr Worawat and Ms Lim during a recent cooperation signing ceremony to jointly run the district cooling business in Thailand.
Mr Worawat and Ms Lim during a recent cooperation signing ceremony to jointly run the district cooling business in Thailand.

Global Power Synergy Plc (GPSC), the power generation arm of national oil and gas conglomerate PTT Plc, has teamed up with a Singaporean partner to develop a district cooling business to serve increasing demand for low-carbon energy solutions in Thailand.

District cooling refers to energy-saving techniques to cool an area using chilled water.

GPSC signed an agreement with Keppel, a Singaporean infrastructure company, to form a joint venture to run the business, aiming to benefit from growing demand for cooling solutions in commercial and industrial sectors, and to support the Thai government's plan to build a low-carbon society.

"This collaboration marks a significant milestone in expanding cooling services by integrating innovation and technology to create new solutions and escalate the efficiency in energy management of the country with the goal of business development in a sustainable way," said Worawat Pitayasiri, president and chief executive of GPSC.

Combined Heat and Power Producing Co, a wholly-owned subsidiary of GPSC, will hold a 51% share in the joint venture, with the remaining 49% belonging to Keppel Eaas (Thailand).

GPSC also cooperates with Keppel on other energy solutions, including electric vehicle charging infrastructure and services related to renewable energy certificates (RECs).

An REC is an incentive aimed at encouraging owners of power plants to produce electricity from clean fuels. Each REC, which certifies that the bearer generates one megawatt-hour from renewable energy resources, can be traded as an energy commodity.

GPSC wants to strengthen its comprehensive energy solutions through this collaboration, said Mr Worawat.

Both GPSC and Keppel will leverage their resources, knowledge and networks to support the joint venture's business opportunities, expanding the customer base within the PTT Group and other industrial and commercial sectors, he said.

Cindy Lim, chief executive of Keppel's infrastructure division, said the company will use this opportunity to bring its expertise in district cooling and energy-as-a-service to Thailand.

GPSC reported a 363% increase in revenue for the second quarter of 2024, reaching 23.9 billion baht, with net profit surging by 65% to 1.43 billion baht. This growth was primarily attributed to a substantial increase in power and steam sales within the small power producer segment.

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