Banpu Group, a non-oil energy conglomerate, has concluded a share purchase deal worth US$430 million (14.29 billion baht) to acquire a new power plant in the US as part of a move to adopt more “HELE” (high efficiency, low emission) technology.
The revenue recognition from the operation of this power plant started yesterday.
The deal, made through BKV-BPP Power LLC, a joint venture between Banpu Group and Banpu power Plc (BPP), the power generation arm of Banpu, led to the purchase of a 100% share in Generation Intermediate Holdings II LLC, which runs Temple 1 power plant in Texas, said Banpu chief executive Somruedee Chaimongkol.
BKV Corporation (BKV) is also a subsidiary of Banpu Group.
She said the investment is added to the business ecosystem of Banpu Group, which also operates shale gas production business in the US.
The Temple 1 power plant is a combined cycle gas-fired power plant with electricity generation capacity of 768MW. The plant began operation in July 2014.
“It is in line with our direction to invest in an operating power plant which utilises high efficiency, low emissions [HELE] technology in order to generate immediate cash flow,” said Mrs Somruedee.
The plant uses combined cycle gas turbine technology to ensure more efficient electricity production, which is also environmentally friendly.
It provides enough electricity to meet the demand of 750,000 homes across central Texas.
Texas is an area where demand for electricity is high and the plant has priority to be the first to supply electricity to the market under a “merit order” system because it has low cost and steady power generation.
The Temple 1 power plant is equipped with gas transportation and gas storage facilities.
These lead to efficient cost management and increases flexibility in the power generation, said Mrs Somruedee.
The investment reflects distinctive synergistic value between BPP and BKV, each with different expertise and experience.
BKV is among the top 20 natural gas exploration and production companies in the US.
The investment is part of Banpu Group’s plan to achieve a power generation capacity target of 6,100MW within 2025.
Source: Bangkok Post