15-07-2025
Gulf acquires renewable power projects for B1.1bn
SET-listed Gulf Development, Thailand's largest energy company by market value, is continuing to boost its renewable power generation capacity by spending 1.1 billion baht to acquire waste-to-energy power plants and refuse-derived fuel production projects held by two companies.
Earth Tech Environment Plc, which owns shares in 12 waste-to-energy power plant projects, and Better World Green Plc, a major shareholder in three refuse-derived fuel production projects, have decided to sell their entire shareholdings in the projects to Gulf.
The transactions were carried out by Gulf's wholly owned subsidiary Gulf Waste to Energy Holdings, which previously held some shares in these projects but wanted to increase its stakes.
"We are confident the increase in our shareholding will help enhance the flexibility of project management," said Yupapin Wangviwat, Gulf's chief financial officer.
"These projects have a long-term growth potential."
The 12 waste-to-energy power plant projects, with a combined electricity generation capacity of 96 megawatts, are under power purchase agreements (PPAs) made with the Provincial Electricity Authority. They are scheduled to commence commercial operations in 2027.
The three fuel production projects, also set to start operating in 2027, focus on turning industrial waste into solid recovered fuel, a high-quality fuel in the refuse-derived fuel category.
Also known as SRF, solid recovered fuel has to undergo rigorous treatment to meet specific standards for industrial use.
Gulf's buyout of the shares in these projects follows the National Energy Policy Council's approval of the state's plan to purchase electricity from waste-to-energy power plants under the 2018 power development plan, said Ms Yupapin.
The purchase is based on a feed-in tariff, the state's guarantee to purchase electricity from renewable plants at fixed prices throughout the whole period of the PPAs.
Gulf's investment in the projects aligns with its commitment to a higher proportion of power generation from renewable sources, part of the company's campaign to reduce greenhouse gas emissions.
The investment also supports better management of industrial waste through value-added creation from waste, Ms Yupapin added.
Gulf earlier spent 704 million baht acquiring a 50% share in Gunkul Solar Powergen Co and another 50% share in Gunkul One Energy 2 Co.
The two firms, subsidiaries of SET-listed Gunkul Engineering, an integrated clean energy developer, are preparing to develop nine solar farms with a combined capacity of 461MW.
