Loxley powers up renewable energy business

“The new company might be named Loxley Energy,” Chalermchoke Lamsam, a senior executive vice president, said last week.
Loxley wants to be recognised as a professional player with strong expertise in the renewable energy business. It has conducted serious feasibility studies on all potential projects. It will not hurry to implement those projects in which it still lacks expertise or is not confident of handling successfully. However, it will go full steam on the projects it feels comfortable with.
Loxley has already invested Bt800 million in the solar farm business with the eight-megawatt L Solar 1, which started feeding the grid in January. It is located on 215 rai of land in Prachin Buri and uses thin-film panel technology.
L Solar 1 has been well recognised by investors and financial institutions. It made some Bt60 million in profit in the first year of operation.
A feasibility study has been done on wind power projects in Nakhon Sri Thammarat and Rayong with combined capacity of 36 megawatts.
Loxley has joined with Krungthep Thanakom Co to set up a power plant fuelled by biogas from fermented organic waste. The initial phase will burn 500 tonnes of waste per day.
Another project to produce biodiesel from algae in cooperation with Ratchaburi Electricity Generating Holding and Bangchak Petroleum is 90 per cent developed.
Its joint venture with Advanced Information Technology, a Thai system integrator, has won a 30-year concession from the Myanmar government to build a 500MW gasification power plant in three phases. It expects to sign the agreement with Myanmar this year and complete Phase 1 in two years.
Loxley has joined with a sawmill to develop a 9.9MW biomass power plant costing Bt800 million in a southern province. The plant, which consumes 300 tonnes per day of para tree scrap as raw material, is expected to launch commercial operations in 14 months. If it is successful, the project will be expanded to eight plants of 10MW each within five years.
Loxley plans to split off the energy business and list it to raise funds after all its existing and planned projects can produce 50MW. This is expected to become clearer in next two years.
The company’s transmission network, design and construction, operating and maintenance, and engineering consulting businesses will be consolidated into this planned energy subsidiary.
Piboon Piboontum, the vice president for financial management assigned to oversee the renewable energy business, said Loxley has more than 200 engineers working to implement all plans of its energy business, reflecting its policy to become a leader in the field.
The Energy Ministry has already opened applications for households and businesses to sell 200MW of solar rooftop electricity.
Loxley submitted a proposal to develop only 5MW because it wants to ensure that its own manpower can handle the job effectively. It does not want to outsource development to others, as it might not be able to control quality and standards. If it fails to deliver the best result, this will hurt its image.
Loxley is not worried at all about support from banks. After the success of its L Solar 1 project, several financial institutions have approached the company to provide credit for its planned projects due to their confidence in the company, he added.