Mitr Phol unit earmarks Bt4.2 bn to expand bio-power output
Mitr Phol Bio-Power, a unit of Mitr Phol Sugar Corp, will next year spend Bt4.2 billion to expand its bio-power generation capacity in Loei and Khon Kaen by 111 megawatts.
The company is also committed to selling carbon credits from its two power plants in Suphan Buri and Chaiyaphum to Thai Airways International for 100,000 tonnes of carbon dioxide per year.
It targets power and energy to contribute 20 per cent of group profit in the future, up from 14 per cent currently.
Krisda Monthienvichienchai, president of Mitr Phol Sugar Corp, said yesterday that investing in the biofuel power plants was in line with the company’s green business strategy to reduce carbon emissions in the environment.
The company now has five bio-power plants in Thailand that run on bagasse waste, a by-product of sugar milling. It has the same kind of power plants in China and Laos, where it also has sugar mills.
Mitr Phol Bio-Power will next year increase the capacity of its Phu Luang plant in Loei by 67MW at a cost of Bt2 billion and the capacity of its Phu Wiang plant in Khon Kaen by 44MW at a cost of Bt2.2 billion, Krisda said.
Both will sell excess output to the power grid.
The company will invest 280 million yuan (Bt1.4 billion) to build a 32MW power plant.
It is waiting for incentives that the Australian government may consider for renewable-energy power plants after the law to impose a carbon tax is implemented in the middle of next year, resulting in higher costs for coal-fired power plants.
Australia deal
Mitr Phol Sugar Corp recently submitted a proposal to buy an additional 50-per-cent stake in MSF Sugar in Australia. It currently holds 22 per cent. The transaction is expected to be completed in January.
Mitr Phol Sugar Corp has signed a memorandum of understanding with THAI to sell certi-fied emission reductions. Mitr Phol Bio-Power will sell carbon credits to the airline for 100,000 tonnes of carbon dioxide from its bio-power plant in Suphan Buri.
Other companies such as SCG Cement have also signed MoUs with THAI, but Mitr Phol seems to be the biggest seller.
Mitr Phol Bio-Power operates power plants in Suphan Buri and Chaiyaphum that can reduce carbon emissions by 200,000 tonnes of carbon dioxide per year.
Each plant has applied for carbon credits in the certified emission-reductions category of 100,000 tonnes for three retroactive years. Mitr Phol Group anticipates its power plants to be certified by next year.
THAI has to seek carbon credits as it has to comply with the European Union’s regulation that will force all airlines flying to European destinations to reduce carbon-dioxide emissions to meet the EU’s standard. The regulation will be implemented next year.
The airlines that cannot reduce carbon emissions from aircraft have to buy carbon credits to offset the carbon dioxide emitted into the atmosphere.
The Thai carrier needs to buy as much as 470,000 tonnes of carbon credits by next year, based on the estimated release of 3.13 million tonnes of carbon dioxide.
