BCPG Plc, the clean power generation arm of energy conglomerate Bangchak Corporation Plc, is expanding its business in the US by investing 3.9 billion baht in two gas-fired power plants in Ohio.
The two power plants -- the 700-megawatt Carroll County Energy and 1,182-MW South Field Energy -- employ combined cycle gas turbine technology, which could serve energy needs for US grid operator PJM around the clock, while the technology itself is also environmentally friendly, said Niwat Adirek, president and chief executive of BCPG.
PJM is the largest regional transmission organisation coordinating the movement of wholesale electricity in 13 states in the US.
"Investing in these two natural gas power plants aligns with BCPG's growth strategy," said Mr Niwat.
The investment will be done through a joint venture between BCPG USA, BCPG's newly established subsidiary, and Advanced Power, a local developer and asset manager of independent power generation projects in the US.
The joint venture acquired shares from operators of the two power plants. This will give BCPG 151MW of additional electricity generation capacity, based on shares acquired by BCPG USA.
The share purchase and sale agreement was completed on Feb 17.
BCPG expects profit sharing from the investment to be recognised within the first quarter of 2023.
Mr Niwat also sees a good business prospect for the two power plants in terms of costs.
"We could save fuel costs since the power plants are in the vicinity of a shale gas source," he said.
"With efficient power generation and low fuel consumption, the plants could distribute 90% of power generation to the market."
Working with Advanced Power allows BCPG to get a foot in the door of more opportunities in the US and is also a big step for BCPG to expand its growth in terms of technology and geography, said Mr Niwat.
