Egco buys into Java’s geothermal plants
SET-listed Electricity Generating Plc (EGCO) and its partner are acquiring shares in two Indonesian geothermal power plants with a combined power generating capacity of 402 megawatts and 235MW equivalent of steam.
President and chief executive Chanin Chaonirattisai said its subsidiary Star Energy Group Holding Pte and partner AC Energy Holdings Inc are in the process of buying shares in Chevron affiliates in Salak and Darajat geothermal power plants in Indonesia.
“According to the consortium, Egco Group will hold a 20.07% indirect ownership interest in the project. The share transfer is expected to be completed in the first quarter of 2017,” said Mr Chanin.
Salak and Darajat geothermal power plants are located in West Java and composed of several geothermal steam and electricity generating units with an aggregate capacity of 402MW of electricity and 235MW equivalent of steam.
The power plants have secured longterm energy sales contracts with PT PLN, the Indonesian state-owned electricity corporation.
“The acquisition fulfils our business plan in enhancing Egco’s presence in Indonesia where we have existing business, and in line with our strategy to pursue investment opportunities in Asia-Pacific,” he added.
Egco started its investment in Indonesia in 2014 by holding a 20% indirect ownership interest in Star Energy geothermal power plant, which has a total installed capacity of 227MW.
The acquisition of Chevron’s geothermal assets reinforces the company’s strategic investment in Indonesia.
Egco is also continuing its plan to develop renewable power projects at home.
Its latest 80MW wind farm in Chaiyaphum province started commercial operation recently, helping to generate more revenue for the company as well as support renewable energy.
The group currently operates 15 renewable power plants with total equity contracted capacity of 746MW, comprising 12 domestic plants with total equity contracted capacity of 213MW and one plant each in Laos, Indonesia and Australia, with total equity contracted capacity of 533MW.
The plants include biomass, waste, water, solar, wind and geothermal power plants.
The renewable energy portfolio accounts for 18.1% of the company’s total equity contracted capacity.
Egco recorded a third-quarter net profit of 2.84 billion baht, reversing a year-earlier net loss of 151 million baht.
For the nine-month period from January, the company posted a net profit of 7.5 billion baht, up 92.8% year-on-year.
EGCO shares closed yesterday on the Stock Exchange of Thailand at 197 baht, up three baht, in trade worth 120 million baht.