Mitr Phol to buy biomass plant for $14.36m

Mitr Phol to buy biomass plant for $14.36m

Thailand’s leading sugar producer Mitr Phol is to purchase another biomass power plan to increase the electricity generating capacity in its energy business.

Thailand based sugar manufacturer Mitr Phol Sugar Corp has entered into a memorandum of understanding (MoU) to acquire Power Prospect Co’s biomass power plant from Power Line Engineering Pcl and existing shareholders for 510 million baht ($14.36 million).

“This is the group’s seventh biomass power plant. But it will be our first time to manage the biomass power plant that can use various feedstock, making the cost more efficient,” Jirasak Vongkusolkit, senior manager of purchasing and administration of Mitr Phol, said.

The power plant, located in Ayutthaya province, has total capacity of 9.9 megawatts.

The company has signed the contract to sell 8 megawatts to the Provincial Electricity Authority, he said.

Mitr Phol will hold the majority stake in Power Prospect and the owner of rice mill, which is next to the power plant, will share the minority. However, this helps it secure the feedstock and lowers the logistic cost. In return, it will be transferred the electricity and steam for using in the rice mill.

Currently, Mitr Phol operates six biomass power plants with total capacity of 450 megawatts. Of that, it sells 200 megawatts to the Electricity Generating Authority of Thailand and the Provincial Electricity Authority.

It aims to boost the proportion of the electricity generating from other feedstocks, not bagasse, up to 200 megawatts by 2020.

Mitr Phol is the country’s biggest sugar producer and the second-largest in China through its joint venture with East Asia Sugar. Its production capacity accounts for around one-fifth of the country’s overall sugar capacity of over 100 million tonnes per annum.

Source: http://www.dealstreetasia.com/stories/thai-sugar-producer-mitr-phol-buy-biomass-plant-14-36m-31024/