Gulf Energy Development Public Company Limited (SET: GULF) has signed agreements to develop 10 Industrial Waste-to-Energy Projects and 3 Solid Recovered Fuel production facilities in a partnership with Better World Green Public Company Limited (SET: BWG) and Earth Tech Environment Public Company Limited (SET: ETC).
The company stated that following the target commitment made by the government for Thailand to become carbon neutral within 2050 and achieve the net zero emission target by 2065, Energy Policy and Planning office (EPPO) has approved the regulations and pricing structure for purchasing electricity from industrial waste-to-energy power plants under a Feed-in Tariff (FiT) Scheme in accordance with the plan to increase the power contribution from clean energy as stated under Power Development Plan between 2018-2037 Revision 1 (PDP2018 Rev. 1).
The management of industrial waste by deriving non-hazardous waste with heating value to produce Solid Recovered Fuel (SRF) to support the electricity generation of waste-to-energy projects, generates added value to industrial waste. Concurrently, it addresses the issue of illegal waste disposal, reduces the requirement for landfill space and minimizes adverse impacts of waste incineration on the environment and public health. Moreover, the process reduces greenhouse gas emissions from landfills and lessens the amount of waste from the production process, thereby fostering the circulation of resources in alignment with government policies in promoting Bio Circular Green Economy (BCG).
GULF stated that it acknowledged the significance of the aforementioned government policy, and therefore has partnered with Better World Green Public Company Limited (BWG), a company possessing more than 20 years’ experience in integrated waste management including waste treatment, waste disposal and waste transformation from non-hazardous industrial waste to fuel (SRF) for supporting electricity production, and Earth Tech Environment Public Company Limited (ETC), a company specializing in operating waste-to-energy power plants. The collaborations aim to jointly develop an integration of industrial waste-to-energy projects and SRF production facilities, adding values that encompass energy, industrial, environmental, and economic perspectives.
GULF stated that on March 8, 2024, Gulf Waste to Energy Holdings Company Limited (GWTE), a subsidiary in which the company directly holds 100% equity stake, has entered into a shareholders’ agreement between GWTE and ETC, for the development of industrial waste-to-energy projects, and a shareholders’ agreement between GWTE and BWG, for the development of SRF production facilities, as per the following:
1) The shareholders’ agreement between GWTE and ETC
1.1) GWTE has signed shareholders’ agreement with ETC for the acquisition of 50% of ordinary shares in Get Green Power Company Limited (GGP), a company developing 10 industrial waste-to-energy projects in which each project has entered into Power Purchase Agreements with the Provincial Electricity Authority (PEA), for the period of 20 years, on October 16, 2023. Each project is categorized as Very Small Power Producer (VSPP) with a contracted capacity of 8 megawatts, or a total contracted capacity of 80 megawatts. The total project cost is approximately THB 15,000 million with scheduled commercial operation dates in 2026.
1.2) GWTE, ETC and together with Wastech Exponential Company Limited (WTX), a subsidiary under the Millcon Steel Public Company Limited group (MILL), signed shareholders’ agreement for ETC to be a new shareholder in 2 industrial waste-to-energy projects under Suntech Innovation Power Company Limited (SIP) through new ordinary shares acquisition, whereby GWTE and WTX is currently holding 51% and 49% equity stake, respectively. After the completion of the capital increase process, the percentage of ownership in SIP of GWTE, WTX and ETC will be 34%, 33% and 33%, respectively. The 2 industrial waste-to-energy projects under SIP has a contracted capacity of 8 megawatts each, or a total contracted capacity of 16 megawatts, in which the projects have secured Power Purchase Agreements with PEA, covering a period of 20 years, on October 16, 2023.
2) The shareholders’ agreement between GWTE and BWG
2.1) The execution of the shareholders’ agreement between GWTE and BWG for the acquisition of 50% of ordinary shares in Circular Camp Company Limited (CC), a company developing 3 SRF production facilities with a total project cost of approximately THB 2,600 million and scheduled commercial operation dates in 2025. CC will supply SRF to support electricity production for waste-to-energy projects under GWTE.
Following the aforementioned transactions, there will be a total of 12 industrial waste-to-energy projects in Thailand being developed by the Company Group, with a total contracted capacity of 96 megawatts, under a Feed-in Tariff (FiT) Scheme as specified in the executed Power Purchase Agreements with PEA, with scheduled commercial operation dates in 2026, concurrently with the development of 3 SRF production facilities with a scheduled commercial operation date in 2025. The Company will provide further updates should there be any progress on the matter.
