EA putting $2.8bn into EEC-based storage facility

SET-listed Energy Absolute Plc (EA) plans to invest in an energy storage production facility in the middle of this year at a cost of US$2.8 billion (87.3 billion baht) with a total capacity of 50 gigawatt-hours.

The first phase for the project will be in Chachoengsao as part of the Eastern Economic Corridor, requiring initial spending of $125 million for a capacity of 1GwH.

Chief executive Somphote Ahunai said the first battery is expected to be produced in the second half in 2019, likely to be used for electric vehicle (EV) assembly.

He said EA has enough cash flow for this massive project from loans and issuing debentures.

“Thanks to EV penetration, the local power storage market will become EA’s priority,” said Mr Somphote.

EA operates renewable power plants such as wind and solar farms.

Licences for wind and solar farms are now the operation combined capacity at 404 megawatts and another 260MW is under construction, scheduled to begin operations around the fourth quarter of this year.

EA will have a total capacity of 664MW of renewable energy by 2018.

Mr Somphote added that energy storage technology is beginning to compete with fossil-generated power.

“This trend is turning the global power market upside down,” he said.

“Germany and Australia, for example, are doing a trial test of energy storage during peak-hour demand, while the US is imposing regulations for energy storage with its renewables projects.”

Before the energy storage project concludes, EA acquired stakes in Taiwanbased Amita Technologies and has since increased its shareholding to 70% of the firm.

The energy storage plant is a part of capital expenditures during 2018-19 at 26 billion baht, 18 billion baht of which has gone towards developing Hanuman Wind Farm in Chaiyaphum at 260MW capacity.

Another 2 billion baht has been set aside for oleochemical production plant in Chachoengsao.

Mr Somphote denied allegations his family are the biggest shareholders of EA, as well as allegations of over-investment and that the company is debt-ridden.

The news has pushed EA share prices down 30% since early 2018.

EA shares closed yesterday on the Stock Exchange of Thailand at 48.25 baht, an increase of 2.50 baht, in trade worth 2.12 billion baht.