Banpu Pcl. (SET: BANPU) and Banpu Power Pcl. (SET: BPP) jointly announced on Tuesday that Temple Generation Intermediate Holdings II, LLC, a subsidiary of BPP, has signed a Purchase and Sale Agreement with CXA Temple 2 Holdco, LLC to acquire 100% interest in CXA Temple 2, LLC, the owner of the Temple II Gas-fired Power Plant in Texas, USA.
The total investment amounts to USD 460 million (THB 16,060 million), with BPP’s shareholding portion valued at USD 230 million (THB 8,060 million). The transaction was successfully completed on July 10, 2023.
Temple II is a 755 MW combined cycle gas turbine (CCGT) power plant that has been in operation since August 2015. BPP’s equity capacity from this acquisition stands at 377.5 MW. The facility is strategically located next to the Temple I Gas-fired Power Plant, in a high-demand electricity region of Texas, where economic growth, urbanization, and a rapidly increasing population drive consistent energy consumption.
The state-of-the-art CCGT technology employed at Temple II ensures high efficiency, operational flexibility, and a competitive merit order, making it well-suited for Texas’ dynamic merchant electricity market, managed by the Electric Reliability Council of Texas (ERCOT). Additionally, the plant features advanced emissions control technology, positioning it as one of the most environmentally friendly gas-fired power plants in the U.S.
Having invested in Temple I since 2021 and recently establishing an electricity retail business in Texas, Banpu sees the acquisition of Temple II as a strategic expansion in the U.S. power sector. The proximity of Temple I and II enables synergistic operations, enhancing efficiency, flexibility, and reliability in power generation.
This acquisition further strengthens Banpu’s position in the merchant electricity market, optimizing resource utilization and achieving economies of scale. The additional capacity enhances its competitive edge in managing breakeven points and diversifying risks within the power business value chain. Moreover, as an operational power plant, Temple II will generate immediate cash flow for the group.
The investment aligns with Banpu’s Greener & Smarter strategy, supporting its transition toward sustainable energy solutions. This expansion plays a key role in Banpu’s goal of reaching 6,100 MW of capacity by 2025 as part of its ongoing transformation into a smarter, more sustainable energy provider.
