Ratch enters gas plant co-venture
Ratchaburi Electricity Generating Holding Plc (Ratch) and Rajburi Sugar Co (Rajburi Sugar) have entered a joint venture to co-invest 4.7 billion baht on a 100-megawatt co-generation gas-fired power plant.
Ratch will hold a 35% stake the venture, dubbed Ratchaburi Electricity Generating (Ratchgen), while Rajburi Sugar will hold 65%. Ratchgen set a commercial operation date of 2019.
"The co-generation power plant will be Ratch's third and 16th total domestic project. It will help accelerate Ratch's equity capacity to 5,000 megawatts," said Pongdith Potchana, chief executive of Ratch.
The co-generation system will be energy efficient as the heat produced during electricity production can generate steam that can be used in other industrial production processes, reducing production cost.
"Ratchgen was granted a Small Power Producer project by the Electricity Generating Authority of Thailand (Egat) under a Energy Regulatory Commission resolution in 2010. Egat and Rajburi Sugar's subsidiaries will be the power purchasers," said Sunthorn Arunanondchai, chairman of Rajburi Sugar.
"We are confident in Ratch's capability because of its extensive experience and specialisation in developing and managing power plants in Thailand and abroad."
In December 2012, Ratchgen signed a 25-year purchase contract with Egat to sell 90 megawatts. Another 10 megawatts and 15 tonnes/hour generated will be sold to Rajaburi Sugar and its subsidiary Rajburi Ethanol.
Shares of RATCH closed yesterday on the SET at 58 baht, down 25 satang, in trade worth 22.2 million baht.