Gulf Energy Development Public Company Limited (SET: GULF) announced that on January 24, 2022, Gulf Renewable Energy Company Limited (Gulf Renewable Energy), a subsidiary in which the company holds 100% equity stake, has entered into a share purchase agreement with a local businessman to invest in 99.99% equity interest in All Waste To Energy Company Limited (ALL WTE), which holds 99.99% equity interest in Chiangmai Waste To Energy Company Limited (CM WTE), who received the right to manage waste disposal system from Chiang Mai Provincial Administrative Organization (Chiang Mai PAO).
The CM WTE municipal waste-to-energy project is a Very Small Power Producer (VSPP) located in Doi Saket district, Chiang Mai province, with installed power generation capacity of not less than 9.5 megawatts to dispose no less than 650 tons of waste per day from Chiang Mai PAO. The project will receive revenue from two sources: tipping fee from waste sorting and sanitary backfilling, and revenue from electricity sales to the Provincial Electricity Authority (PEA). The project plans to start the power plant construction after the Power Purchase Agreement has been signed with the PEA, with an expected construction period of approximately 3 years.
The company’s investment in the municipal waste-to-energy project is a part of its expansion in the renewable energy business and helps alleviate the problem of procuring additional landfill sites in Chiang Mai. It also supports the government’s policy to promote clean energy, as Thailand has committed to the targets to achieve carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065 at the COP26 conference. The company recognizes the importance of climate change and decarbonization, and has developed business strategies that emphasize investments in renewable energy businesses in accordance with government policies and global efforts that aim to reduce greenhouse gas emissions to counter the negative effects from climate change.