SET-listed Banpu, Thailand's largest coal mining firm, has earmarked US$835 million (26.6 billion baht) for 2019-20 to expand into cleaner energy resources and trim CO2 emissions.
Chief executive Somruedee Chaimongkol said most of the budget will go towards gas, renewable energy and energy-related technology.
For the core mining business, Banpu has allocated 13% of the budget for coal reserve expansion and trading, but has no plans for coal mining expansion.
"Many energy firms across the world are focusing on cleaner energy resources and renewable energy. Banpu decided to move in line with this trend," Mrs Somruedee said.
Of the total budget, $500 million is set aside to increase gas production in the Marcellus area of the northeastern US, on top of an existing budget of $522 million in the past few years.
The gas resource has average production of 200 million standard cubic feet per day (MMSCFD), with plans to increase by 10% to 220 MMSCFD in coming years.
She said a further $100 million will go to energy technology management for renewable and alternative energy, such as a micro-grid for solar rooftops.
Banpu has a wholly owned subsidiary, Banpu Infinergy Co (BPIN), spearheading the micro-grid venture.
BPIN has installed and developed solar rooftops at clients' properties in Thailand for a total power capacity of 15 megawatts.
Overseas, BPIN has invested in a Singaporean energy storage system business, taking up 44.84% of New Resources Technology, with capacity of 35.8MW.
BPIN also has a stake in Singapore-based Sunseap Group, a clean energy solutions provider, owning 96.5MW of energy storage.
"In Sunseap, BPIN plans to increase energy storage capacity to 150MW by 2020," Mrs Somruedee said.
BPIN owns 21.5% in FOMM Corporation, a Japanese developer and maker of compact electric vehicles.
She said $65 million of the 2019 budget will go to developing renewable energy through another subsidiary, Banpu Power, while the remaining $60 million is for fossil-based power plants.
"Banpu and BPIN are preparing for a new energy platform in the future by emphasising our vision for Entech," said Mrs Somruedee.
In 2019, Banpu plans to maintain coal sales volume at 43 million tonnes, unchanged from 2018.
Coal reserves have expanded to 900 million tonnes in China, 350 million tonnes in Indonesia and 350 million tonnes in Australia.
She said the coal price will average $85-95 per tonne in 2019, compared with $93 per tonne in the fourth quarter of last year.
BANPU shares closed on Thursday on the SET at 16.10, unchanged, in trade worth 278 million baht.
