TPI Polene Power Plc (TPIPP), the SET-listed power business arm of Thailand's third-largest cement producer, says it has been granted six licences by local administrative offices to develop waste-to-energy projects, for which it will spend 600 million baht.
Vice-president Woravit Lerdbussarakam said all six projects are located in central and eastern Thailand, where the government has revised regulations to allow private firms to develop waste management for power generation, starting this year.
He said TPIPP is allocating 100 million baht for each project, which will operate refuse-derived fuel (RDF) from community waste to generate power.
In the first stage of development, the six locations could receive combined waste of 3,000 tonnes per day to produce 1,400 tonnes of RDF. Commercial operations are slated to start by the end of this year, said Mr Woravit.
Over the past few years, many local administrations have tried to develop their own waste-to-power projects, but most failed because of inappropriate business models and a lack of know-how and technology.
That has encouraged policymakers to seek ways to tackle the community waste problem.
This year, the government revised the Waste Management Act, which allows local administrations to select investors to develop waste-to-power projects.
Mr Woravit said TPIPP will develop two RDF-fired power plants in Ayutthaya and one each in Nakhon Ratchasima, Samut Sakhon, Chon Buri and Rayong.
This year TPIPP also allocated space at its existing power plant in Kaeng Khoi, Saraburi province to develop a new RDF project that will handle 6,000 tonnes of fresh waste per day to produce 2,000 tonnes of RDF.
With more projects, TPIPP is expected to have a combined power generating capacity of 440 megawatts by year-end.
He said Thailand has 70,000 tonnes of waste that can be converted into RDF, with power generating capacity of 2,000MW. That estimate excludes waste in massive landfills around the country.
The company has allocated 6.8 billion baht for ongoing projects this year, and another 1.3 billion for next year, said Mr Woravit.
TPIPP reported that it has started commercial operations at four power plants with a combined capacity of 150MW. They comprise two RDF power plants and another two heat-waste recovery power plants.
The company also reported that total power sales in the first quarter reached a record high of 209 million kilowatt-hour (units), up from 197 million in the previous quarter. Upgrades and an efficiency programme are also anticipated to help TPIPP generate more revenue, he said.
Shares of TPIPP closed on the SET yesterday at 7.80 baht, unchanged, in trade worth 114.3 million baht.
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