BCPG invests more than THB 3,900 million in two natural gas power plants in the U.S., aiming for profit-sharing recognition within Q1/2023
BCPG Public Company Limited, a leading renewable energy company in Thailand and Asia-Pacific, has announced the establishment of a new subsidiary, “BCPG USA Inc.” (BCPG USA), to invest in two natural gas power plants in the United States. The investment was conducted through a joint venture between BCPG USA and Advanced Power, an experienced local developer and asset manager of independent power generation projects in the U.S., with an investment fund of USD 115 million or THB 3,972 million approximately. The profit sharing is expected to be recognized within the first quarter of 2023.
Niwat Adirek, President and CEO of BCPG, disclosed that the Company has successfully expanded its energy business in the U.S. The new subsidiary BCPG USA Inc. formed a joint venture with Advanced Power to invest in natural gas power plants in Ohio. The generated power will be sold to PJM, the largest regional transmission organization (RTO) coordinating the movement of wholesale electricity in 13 states in the U.S. This transaction will contribute an additional 151 MW owned to BCPG’s portfolio. On February 17, 2023, BCPG USA completed Purchase and Sale Agreement with the investment fund of USD 115 million (THB 3,972 million) to acquire 151 MW in two natural gas power plants.
- The 700-MW Carroll County Energy LLC (CCE): an acquisition of 49% in AP-BCPG CCE Partners LLC, which owns 17.76% in Carroll County Energy’s 700 MW combined cycle gas turbine (CCGT) powerplant, the transaction will result in an acquisition of 8.88% or 61 MW owned by BCPG.
- The 1,182-MW South Field Energy LLC (SFE): an acquisition of 49% in AP-BCPG SFE Partners LLC, which owns 15.55% in South Field Energy’s 1,182 MW CCGT power plant, the transaction will result in an acquisition of 7.78% or 90 MW owned by BCPG.
“Investing in natural gas power plants aligns with BCPG’s growth strategy. The power plants employ Combined Cycle Gas Turbines Technology or CCGT, which could serve energy needs for the PJM around the clock, while the technology itself is also environmentally friendly. Moreover, we could save fuel costs since the power plants are in the vicinity of a Shale Gas source. With efficient power generation and low fuel consumption, the plants could distribute 90% of power generation to the market. We expect to earn profit sharing by the first quarter of 2023”, said Niwat.
Advanced Power is an experienced local developer and asset manager of independent power generation projects in the U.S. The partnership with Advanced Power allows BCPG to get a foot in the door of more opportunities in the U.S. and is also a big step for BCPG to expand its growth in terms of technology and geography.
“We aim to expand our business into various types of clean energy to serve an increasing energy demand, smoothen energy transition, as well as securing sustainability of the World,” Niwat said.