Superblock takes 15.7% of Genco via private offer
Superblock Plc is paying Bt700 million to acquire 350 million of General Environmental Conservation Plc's private placement shares for a 15.7-per-cent stake.
Superblock is interested in pursuing the biomass energy business and is open to strategic alliances, such as with Genco.
Initially, the company is looking for a biomass-fired power plant with a permit to sell electricity that can promptly generate revenue. The company expects to achieve its goal of supplying 500 megawatts this year on a commercial operations date (COD) basis.
It started to see revenue from the sale of electricity in the second quarter of this year and is ready to become a supplier of alternative energy.
Chairman Jormsup Lochaya said yesterday that the investment is in line with the company’s policy to invest in biomass, solar, wind and garbage farms to become the country’s leading supplier of electricity generated from alternative energy sources.
The joint venture will be a reliable revenue stream for Superblock by benefiting |from Genco’s experience in |biomass and Superblock’s strength in alternative sources of energy.
Superblock would need to continue to invest to achieve this year’s goal of securing a 600MW power purchase agreement (PPA) and to be ready to launch the 500MW COD.
The company secured 41.7MW PPA, 24MW on April 23 and 17.7MW on April 27.
Despite the stipulation that the COD must take place by December, the company believes it can launch the COD by this or next month.
This would mean realising revenue this quarter. The revenue would exceed last year when the company was selling 13.51MW, he added.
