BGRIM set to buy 2 EP plants

BackOct 29, 2021

SET-listed B.Grimm Power Plc (BGRIM), an energy developer with the largest capacity in the small power producer segment, has teamed up with Univentures Plc to buy two power plants from SET-listed Eastern Power Group Plc (EP) under a 12.4-billion-baht deal.

The purchase will be made through Univenture BGP Co, a joint venture between BGRIM, with 45% ownership, and Univentures Plc, with 55% ownership, according to a report sent to the Stock Exchange of Thailand yesterday.

EP subsidiary Cogeneration Co (E-Cogen) holds not less than a 74.5% share in PPTC Co and a 100% share in SSUT Co.

PPTC and SSUT own two combined cycle cogeneration power plants, with a 25-year power purchase agreement under the small power producer scheme with state-run Electricity Generating Authority of Thailand.

Harald Link, president of BGRIM, said Univenture BGP is expected to acquire all shares in E-Cogen within this year.

PPTC runs a 120-megawatt gas-fired power plant and simultaneously produces 30 tonnes of steam per hour. The facility is located in Lad Krabang Industrial Estate in Bangkok.

SSUT runs a 24-MW gas-fired power plant and produces heat amounting to 60 tonnes of steam per hour. It is located in Bang Pu Industrial Estate in Samut Prakan.

According to BGRIM, its latest investment is part of capital expenditure worth 250-300 billion baht allocated between 2021 and 2030 to expand.

Mr Link said BGRIM has set a goal to increase its power generation capacity to 7.2 gigawatts within 2025 and up to 10GW by 2030.

Its current capacity stands at 3.05GW.

Mr Link said the large amount of capital expenditure does not always require an increase in registered capital as there are other alternatives to raise funds, including green bond issuance, infrastructure fund establishment and internal cash management.

Source : bangkokpost