Thachang Green Energy Plc (TGE), a biomass power plant developer and operator, has been awarded a contract to build a 1.4-billion-baht waste-to-energy power plant in Samut Sakhon, part of state efforts to promote renewable energy.
The company won an auction organised by the Tajeen Municipality Office, which plans to use community waste as a fuel for electricity generation in its area.
TES TCN, the name of the new facility, is expected to have a power generation capacity of 9.9 megawatts. It is scheduled to start operations in 2025, said Pongnarin Wansuwankul, executive chairman of TGE.
The business model for the power plant is based on a build-own-operate scheme lasting for 25 years. TGE is contracted to sell 8MW of electricity to state distribution arm Provincial Electricity Authority (PEA).
TES TCN is one of four new waste-to-energy contracts awarded to the company by local administrative bodies. Others currently under development are located in the provinces of Chai Nat, Prachin Buri and Ubon Ratchathani. All these facilities are expected to be operational within 2025.
Part of the investment budget will come from 1.2 billion baht in funds TGE raised in an initial public offering in August, he said.
Earlier TGE won bids for licences to develop three community waste-fired power plant projects in the provinces of Sa Kaeo, Ratchaburi and Chumphon.
The company is preparing to build the three facilities, with combined capacity of 22MW.
The commercial operation date for these three power plants has been set for 2024.
They are committed to sell 16MW of electricity to the PEA.
"We are confident of winning auctions, thanks to our cost effectiveness, good logistics management and fuel production, as well as flexible management of maintenance expenses," said Mr Pongnarin.
"These factors increase the company's competitiveness and profitability."
The company operates three biomass power plants in Surat Thani, a southern province known as the hub of palm plantations and palm oil processing in the country.
The three plants are called TGE, TPG and TBP, all of which are located in Tha Chang district. They sell 20.3MW of their combined 29.7MW capacity to the PEA under long-term contracts.
TGE plans to increase the total capacity of its combined power plants to more than 200MW by 2032.
The company recorded a gradual increase in revenue between 2019 and 2021.
In 2019, the company earned 335 million baht. Revenue increased to 651 million baht in 2020 and 780 million in 2021.
