Banpu touts ‘Energy Symphonics’

Banpu, a SET-listed energy conglomerate, is not losing steam in its efforts to produce quality energy as well as care for the environment, despite challenges in a volatile market.
During the company’s transition to cleaner energy, part of the global campaign against rising temperatures, chief executive Sinon Vongkusolkit has been busy orchestrating sustainability plans as Banpu aims to reach a net-zero target, balancing greenhouse gas emissions and absorption, by 2050.
The efforts are part of what he terms the “Energy Symphonics” strategy.
“Energy Symphonics represents our synchronised approach of creating new and sustainable energy solutions to address the world’s surging energy demand while simultaneously looking after the planet,” said Mr Sinon.
The strategy is based on Banpu’s business campaign initiated in 2016 to make its businesses greener and smarter by adopting high-efficiency, low-emission technology.
FOUR MISSIONS
Banpu is committed to embarking on four missions to attain three goals in the energy business, he said.
The company aims to build energy security, defined as reliable and consistent energy supply; energy equity, ensuring affordable and accessible energy for all; and energy sustainability, focused on minimising environmental impact.
To attain these goals, four key missions are needed, Mr Sinon stressed.
The first mission is to implement plans, including decarbonisation, that will pave the way for Banpu to reach the net-zero target.
The company plans to reduce greenhouse gas emissions by at least 20% and reduce coal-related earnings to less than 50% of consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) by 2030, he said.
Banpu mines coal overseas. To reduce coal usage in the power sector, Banpu Power, its power generation arm, earlier announced it is conducting a feasibility study on the use of ammonia at the coal-fired BLCP power plant in Rayong.
The company wants to use ammonia to replace coal, aiming to reduce carbon dioxide emissions.
The second mission involves significant progress in Banpu’s gas business.
Mr Sinon said Banpu focuses on growth in its “winning formula” of integrating gas upstream, gas-fired power, and carbon capture, utilisation and sequestration (CCUS) to deliver low-carbon gas solutions in the US, while generating strong cash flow.
The company runs large gas-fired power plants in the merchant power market of the Electric Reliability Council of Texas, one of the seven fastest-growing electricity markets in the US.
Banpu said earlier it anticipates generating long-term revenue from its CCUS technology installed at its Barnett shale field in Texas.
The company operates two CCUS projects there: Barnett Zero and Cotton Cove.
By separating carbon dioxide from produced gas before pipeline entry, CCUS creates carbon-sequestered gas, a premium natural gas for sale at higher prices to customers seeking cleaner energy.
The third mission, dubbed “Renewables+”, is to keep accelerating its renewables business across Asia-Pacific.
This can be achieved through investments in battery energy storage systems (BESS), downstream businesses and utilising carbon credits, said Mr Sinon.
BESS aims to solve the intermittency of renewable power, he said.
The sun and wind tend to offer an intermittent supply of power, with volume determined by weather patterns.
The fourth mission is a plan for next-generation mining.
Banpu is pursuing intelligent mining, integrating smart solutions and artificial intelligence to its mining operations to increase efficiency, reduce costs and minimise environmental impact, said Mr Sinon.
The company will also invest in strategic minerals, which are crucial for the energy transition, he said.
“We are passionate about tackling the energy trilemma head-on by reshaping the standards for reliable, affordable and sustainable energy,” said Mr Sinon.
BUSINESS PROGRESS
Banpu continues to strengthen its gas business in the US and renewable energy development in Japan this year.
BKV Corporation, the gas production arm of Banpu, was successfully listed on the New York Stock Exchange, he said.
BKV’s initial public offering of 15 million shares at US$18 per share raised $270 million, demonstrating the growth potential of its integrated gas value chain in the US, said Mr Sinon.
Banpu Next, the energy technology arm of Banpu, expanded its business in Japan by investing $35 million in Amp Co, a leading developer of renewable energy projects from an early stage until commercialisation.
He said this investment will support the development of 800 megawatts of solar and wind projects, contributing to its goal to create a 2-gigawatt platform before the turn of the decade.
Moreover, the company’s Iwate Tono Battery Farm is nearing completion. The second phase of high-voltage equipment and substation construction is underway, with commercial operation expected by the second quarter of 2025.
Starting next year, Banpu plans to allocate $3 billion to fund its businesses until 2029, with 60% of the budget going to gas-fired power generation and carbon capture storage businesses, said Mr Sinon.
CHALLENGES IN 2024
Banpu posted a loss in the third quarter, attributed to the impact of unfavourable market conditions.
The company reported total sales revenue of $1.34 billion (roughly 46.6 billion baht), Ebitda of $379 million (roughly 13.2 billion baht) and a net loss of $24 million (roughly 830 million baht).
The results were attributed to declining market prices for coal and natural gas as well as unrealised losses from foreign exchange rate translation, resulting from the baht’s appreciation against the US dollar.
“Despite challenges in a volatile energy market, Banpu is confident the Energy Symphonics strategy will drive growth, create long-term value for shareholders and prioritise all stakeholders, while caring for the planet,” said Mr Sinon.