ENERGY

ENERGY

PTT, IRPC in 90-MW solar venture

RAYONG : PTT Plc and its subsidiary IRPC Plc have formed a partnership to develop solar farms with a capacity of up to 90 megawatts at a cost of 6 billion baht.

The two partners signed a memorandum of understanding this week for a joint feasibility study on solar plants.It will be completed within six months, then submitted for final endorsement by both companies.
Pailin Chuchottaworn, the IRPC acting chief executive and newly appointed CEO of PTT, said the first 50-MW solar farm would be developed on a 2,000-rai site IRPC owns in Chana district of Songkhla.
IRPC has another land plot in Rayong for future solar projects, said Dr Pailin, also chief operating officer of PTT.
Outgoing PTT chief executive Prasert Bunsumpun said the solar venture was being developed in response to the government's policy of promoting renewable energy and strengthening the security of the country's power supply.
PTT and IRPC will later set up a joint venture to invest in the solar farms and apply to sell the electricity to the Electricity Generating Authority of Thailand.
IRPC, an integrated petrochemical firm, yesterday inaugurated its 8-billion-baht combined heat and power (CHP) power project in Rayong. The gas-based 220-MW plant also generates 408 tonnes an hour of steam.
Dr Pailin said the plant would help reduce electricity costs by 16% or 150 million baht per month. By replacing the old fuel oil-based plant, the CHP will lower IRPC's carbon dioxide emissions by 400,000 tonnes a year, with that amount to be sold as carbon credits for extra income.
"We're in the final stage of selling the carbon credits as per the UN Framework Convention on Climate Change," he said, adding that credits are priced at 13 (557 baht) per tonne.
Analysts said the CHP would lower costs of IRPC in the fourth quarter, when financial performance is expected to soften due partly to a maintenance shutdown.
IRPC's second-quarter net profit rose by 156% year-on-year to 2.98 billion baht thanks partly to stock gains, while revenue increased 19% year-on-year to 67.6 billion.
IRPC shares closed yesterday on the SET at 5.05 baht, down 20 satang, in trade worth 685 million baht.