SET-listed BCPG Plc, the power generation arm of Bangchak Corporation, will acquire shares worth US$260 million in Hamilton Holdings II LLC to further expand its gas-fired power plant business in the US.
Hamilton Holdings II operates two power plants, using combined cycle gas turbine technology, in Pennsylvania.
The BCPG board approved a plan to buy a 25% share in Hamilton Holdings II from Franklin Power Holdings, said Niwat Adirek, chief executive and president of BCPG.
The investment would be made through BCPG’s wholly-owned BCPG USA Inc.
One of the two power plants – Hamilton Liberty LLC – has an installed electricity generation capacity of 848 megawatts. It is located in Asylum County.
The other – Hamilton Patriot LLC – with capacity of 857MW is located in Clinton County.
This investment will result in BCPG increasing its power generation capacity by 426MW, based on its purchased shares, according to Mr Niwat.
BCPG started its power business in the US by first acquiring shares in two gas-fired power plants in Ohio.
It bought a 8.7% share in 700MW Carroll County Energy LLC and a 7.6% share in 1,182MW South Field Energy LLC for a total of $115 million, or around 3.9 billion baht.
The share purchase and sale agreement was completed on Feb 17.
The two power plants, also employing combined cycle gas turbine technology, could serve energy needs for US grid operator PJM around the clock, while the tech itself is also environmentally friendly, Mr Niwat said earlier.
PJM is the largest regional transmission organisation coordinating the movement of wholesale electricity in 13 states in the US.
This investment would give BCPG 151MW of additional electricity generation capacity, based on shares acquired by BCPG USA.
BCPG has allocated 39 billion baht for its business expansion in Thailand and overseas this year.
Up to 77% of the budget would support new development projects while the remaining 23% would be used for new asset acquisitions, said Mr Niwat.
The firm sees growth potential in Thailand after energy authorities announced that renewable energy would make up 50% of the fuels used for electricity generation in the country, up from 12% last year, within the next two decades.
