EGCO to utilise Indonesian petrochemical operations for clean energy development
Electricity Generating (EGCO), the power generation subsidiary of the Electricity Generating Authority of Thailand (EGAT), plans to utilise its petrochemical operations in Indonesia to foster clean energy development, with a particular focus on hydrogen fuel. EGCO secured a 30% stake in PT Chandra Daya Investasi (CDI), a division of Indonesia’s largest integrated chemical and infrastructure solution provider, PT Chandra Asri Petrochemical Tbk Group (CAP), last year. CAP retains the remaining 70%.
Thepparat Theppitak, EGCO President, suggested that aside from expecting substantial returns from this investment, the company also recognises the potential for fresh energy business opportunities. CDI manages crucial infrastructure and utilities in western Java, including gas-fired power plants, a water supply facility, a tank farm rental service, and a jetty management business. Expansions to the tank farm capacity and further development of the jetty management business are in the pipeline.
Thepparat identified a potential opportunity to utilise hydrogen, a petrochemical industry by-product, to produce hydrogen fuel. This move aligns with global efforts to reduce carbon dioxide emissions, a significant contributor to global warming.
“We have sent our staff to Indonesia to study what can be developed to support a plan to push ahead with a new renewable energy project.”
EGCO also envisages potential revenue growth in the US renewable energy sector through its investment in Apex Clean Energy Holdings LLC. In 2021, the company completed the purchase of a 17.4% share in Apex. The US is a major market for wind and solar power, and in collaboration with Apex, EGCO anticipates benefits from various renewable energy projects developed and operated by Apex.
Thepparat explained that Egco could maintain its investment in Apex till the end of the concession periods for Apex’s clean energy projects or consider selling the shares. As of December last year, Apex has committed to developing and operating 40 projects with a combined capacity of 59,850 megawatts, reported Bangkok Post.
