B.Grimm Power PCL (BGRIM) reportedly plans to expand its investment in Smart City with Amata Corporation PCL (AMATA) with its focus on Thailand to strengthen the new domestic electricity development.
Preeyanat Soontornwata, the president and director of B.Grimm, said that AMATA was expanding the Chonburi Industrial Estate as a Smart City and the company was looking forward to participating in the project.
“Our company is the first choice in the Smart City project for AMATA as we are focusing on sustainable energy,” he said.
The power producer, B.Grimm is a leading private energy firm with more than 24 years supporting Thailand’s domestic economic and social development. Its power capacity stood at 2,896 MW with new projects on the line.
Preeyanat also revealed that the company and PTT Group would collaborate to support industries in Yangon Amata Smart & Eco City and the YASEC project in Myanmar.
Community power plants
B.Grimm Power is interested in investing in community power plants as the company wants to share its experience and help communities generate sustainable income.
Initially, about six to seven places for the biomass power plant are operating under the government’s conditions. It is expected to have a total capacity of 60 MW or 8 MW per plant.
The main target areas are in the central and southern regions of Thailand, as they wait for the government to acquire electricity from these projects.
The company aims to have a capacity of 7,200 MW in 2025 from 3,682 MW with an investment of 180,000 million baht. It is expected to reach 3,058 MW by the end of 2020.
B.Grimm’s performance in the second half saw better signs than the first half due to lower gas costs. The cost reduced from 264.4 baht per million BTU to around 227.53 baht per million BTU.
“Every 1 baht per million BTU decrease to gas cost will increase the profit to 15-16 million baht per year,” said Preeyanat.
Analysts from KGI Securities said that BGRIM is the top pick in the sector due to the benefits from 15 per cent cheaper gas expenses, a pick-up in Industrial User (IU) demand, and incoming inorganic growth from domestically and overseas.
Meanwhile, the risks include delays in new capacity allocation and projects’ construction, changes in the country’s regulations and power plant outages.
BGRIM shares stood at 47.00 baht per share on Tuesday’s intermission break, an increase of 0.75 baht or +1.62 per cent with the transaction value at 93 million baht.