China Energy Engineering Corporation, a state-owned conglomerate, looks set to invest $100 million in the first phase of hybrid power plants to supply U-tapao airport.
Deputy Prime Minister Somkid Jatusripitak, who met Chen Jiping, the company's chairman, said the Chinese firm is in the process of renting a plot from the Royal Thai Navy to establish the plants at U-tapao airport.
"China Energy Engineering Corporation is a conglomerate in China whose revenue is equal to Thailand's GDP," he said. "The company has invested a lot in the areas of the Belt and Road and Greater Bay Area, which offer an opportunity for Thailand to build investment linkage between the Greater Bay Area and the Eastern Economic Corridor [EEC], and the neighbouring countries of Cambodia, Laos, Myanmar and Vietnam."
The Greater Bay Area refers to the Chinese government's scheme to link the cities of Hong Kong, Macau, Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Huizhou, Jiangmen and Zhaoqing into an integrated hub.
Mr Somkid said the government has also invited the company to invest in the EEC, especially in biofuels and biochemical industries that are one of the 12 targeted industries the government is actively promoting.
Kanit Sangsubhan, secretary-general of the EEC Office, said the planned $100 million investment is part of $300 million in investment the Chinese conglomerate plans in Thailand.
The first phase of the investment will engage mainly in building the co-generation plant with 80 megawatts, a solar power plant with 15MW and an energy storage system with 50MW per hour. The plants are expected to be finished in 2021.
The second phase includes an 80MW co-generation power plant and a 55MW solar PV system featuring a farm, solar rooftops and a floating farm.
The investments will be operated through a local joint venture firm formed with SET-listed B.Grimm Power Plc, the power generation arm of B.Grimm Group.
B.Grimm was selected by the navy last October as the operator of power plants and a cooling water project at U-tapao airport.
Development and construction of the first phase is set for 2018-21, while the second phase is 2021-23.
B.Grimm expects commercial operation of the first phase by January 2021.
