Banpu grabs stake in Singapore firm

Sunseap deal provides clean energy expertise

SET-listed Banpu Plc, Thailand’s largest coal miner, has acquired a stake in Singapore-based Sunseap Group Pte, a clean energy solutions provider, for 1.86 billion baht through wholly owned Banpu Infinergy Co (BPIN).

Chief executive Somruedee Chaimongkol said the purchase of a 25.7% stake in Sunseap marks a milestone in Banpu’s global expansion.

Banpu in August launched BPIN, a onestop provider of solar energy solutions, to tap rising demand for solar rooftops in the Thai property market.

The Sunseap share buy lets Banpu use advanced technology under the Go Green Together concept via BPIN.

The deal will also make BPIN a major shareholder in Sunseap Group, whose capacity is estimated at 93.3 megawatts and is set to rise to 182.9MW through secured projects.

Sunseap will share its knowledge and experience in servicing large customers in Singapore, such as state agencies and leading global companies like Apple, and BPIN will in turn deliver services to Thai customers.

Ms Somruedee said BPIN is committed to strengthening its foundation and efficiently serving customers while responding to business needs and encouraging the switch to clean energy in Thailand.

The share acquisition will give BPIN an increase in power-generating capacity of 47MW of signed projects, enhancing its five-year power-generating capacity goal of 300MW.

BPIN is providing full rooftop services for businesses seeking to cut energy costs.

In response to soaring demand, energy policymakers are scheduled to finalise rules for the sale of surplus power capacity back to state utilities in the fourth quarter.

BPIN expects service orders of 20MW within the first year of operation, rising to 300MW by 2023.

Policymakers are also revising the national power development plan for 2015-36. Once the plan is done, BPIN’s target of 300MW may be revised up on rising demand for solar rooftops.

Meanwhile, Banpu expects total revenue growth this year of 20% from US$2.26 billion (74.8 billion baht) in 2016. The company forecasts global coal prices to average $63 a tonne in 2017, up 20% from last year’s average.

BANPU shares closed yesterday on the Stock Exchange of Thailand at 16.90 baht, unchanged, in heavy trade worth 1.08 billion baht.