GULF Inks Agreement with Provincial Electricity Authority to Develop 16MW Industrial Waste-to-Energy Projects

Gulf Energy Development Public Company Limited (SET: GULF) has announced that it has entered into a power purchase agreement for the development of two industrial waste-to-energy projects for THB 3,600 million. 

Reference was made to the Energy Regulatory Commission (ERC)’s announcement on April 5, 2023, on the list of developers of Very Small Power Producer (VSPP) awarded projects, granted in accordance with the ERC’s Regulations for Purchasing Electricity from Renewable Energy Sources under a Feed-in-Tariff (FiT) Scheme between 2022-2030 for industrial waste-to-energy power plants, whereby Power Watt 1 Company Limited and Power Watt 2 Company Limited (the Project Companies), subsidiaries in which Gulf Energy Development Public Company Limited (the Company) indirectly holds 51% equity stake with Wastech Exponential Company Limited, a company operating a recycling and industrial waste management business under the Millcon Steel Public Company Limited group, indirectly holding 49% equity stake, have been awarded industrial waste-to-energy projects under the aforementioned announcement. 

GULF has announced that on October 16, 2023, the Project Companies entered into Power Purchase Agreements with the Provincial Electricity Authority (PEA) for the development of 2 industrial waste-to-energy projects with a contracted capacity of 8 megawatts each, or a total contracted capacity of 16 megawatts, with a total project cost of approximately THB 3,500 – 3,600 million. The Power Purchase Agreements cover a period of 20 years from the date of commercial operation, which is scheduled for 2026. 

The Company’s investment in industrial waste-to-energy power plants aligns with the Thai government’s policy to decarbonize and increase the proportion of renewable energy projects during the energy transition period as the Project Companies use state-of-the-art technology and processes in order to efficiently manage industrial waste, adding value to waste products from industrial manufacturing processes, in accordance with the circular economy concept while also reducing the amount of landfill waste in the country which can be considered a key action to help mitigate negative environmental impacts. The Company will provide further updates should there be any progress on the matter.