Electricity Generating : EGCO Group plans investment in the second half of 2023 - New goal set to achieve Net Zero by 2050

Electricity Generating Public Company Limited or EGCO Group announced an investment plan for the second half of 2023, seeking opportunities in natural gas and renewable power plants to generate quick win and short-term strength. Simultaneously, hydrogen supply chain will be emphasized to boost mid-term and long-term growth. The company also announced a new goal of achieving Net Zero by 2050 to promote low carbon society.

Mr. Thepparat Theppitak, EGCO Group's President, said that EGCO Group has been seeking new opportunities to continue its investment in power and energy-related businesses. In the second half of this year, the company will focus on generating quick income and strengthen its business under the "4S" short-term strategy. EGCO Group will carefully select high quality projects with focusing on merger and acquisition (M&A) of highly efficient conventional and renewable power plants to immediately recognize income. At the same time, the company will benefit from a strong network of partners in eight countries in which it has already been operating.

For mid- to long-term strategy, EGCO Group plans to focus its investment in future energy business, including hydrogen supply chain which supports the transformation from fossil fuel to green energy. EGCO Group has worked closely with many partners to study the feasibility of new technology and investment possibility. For example, it will study the development and utilization of hydrogen for eco-friendly power generation with lower carbon emission, the hydrogen supply chain related business, green hydrogen production from Boco Rock Wind Farm in New South Wales, Australia, which has high capability to generate green hydrogen.

Low carbon society initiative: The impact from Climate Change has become stronger. EGCO Group, therefore, adjusted its goals which are more challenging and sophisticated in order to address the rapidly changing situation today and to be in line with other world's leading companies. As a result, the company aims to achieve the carbon neutral goal by 2040, which is 10 years ahead of the previously announced date of 2050. EGCO Group also announced a new goal of achieving Net Zero by 2050. The move confirms high potential in the new power generation technology. Meanwhile, this new goal will support EGCO Group's operation and investment, which is in line with the international energy businesses and increasing power demand during the entire energy industry's transition towards clean energy.

The major investment that will support the plan to achieve Net Zero by 2050. The plan includes an investment in APEX, a large-scale renewable energy power developer in the USA. It is a high potential investment that will support EGCO Group's long-term growth. APEX will increase electricity generation from renewable energy sources. At the same time, the company will create new business opportunities through hybrid operations - development of projects that will be operated by the company and later sell the project. In 2023, APEX has two power plants that have already been commercially operated, which has a total capacity of 294MW. It has five projects under construction with combined capacity of 657MW, which will be gradually completed from 2023-2025. These include two solar farms in Texas, one wind farm in Maine, and two battery storage projects in Texas. There are over 242 other projects under development with combined capacity of 53,767MW.

Operating performance in the first six months: EGCO Group posted 3,482 million baht net profit, a 4% increase year on year. During this period, EGCO Group has efficiently maintained its power plant portfolio and fuel costs, especially for the large power plants in Thailand and overseas. This has enabled the company to generate more income from electricity sales. In addition, it was able to manage projects under construction to progress as planned. For example, Yunlin Offshore Wind Farm Project in Taiwan was able to achieve significant progress according to its development plan. As of now (25 August 2023), the project has already completed the installation of 39 monopiles and 22 wind turbine generators which have already transmitted power to the grid.

"EGCO Group expected to benefit from full-year income recognition at Nam Theun 1 Hydropower Plant in Lao PDR, RISEC Power Plant in the USA and Yunlin Offshore Wind Farm Project in Taiwan which has gradually started to transmit electricity to the grid once the wind turbine generators are completely installed. We will also recognize income from the Extension of Petroleum Pipeline System in Northeastern Project (TPN) which is expected to commence its commercial operation within Q3/2023. The progress of our operations will contribute to the company's mission of ensuring continuous growth and generate added value to shareholders," said Mr. Thepparat.
About EGCO Group
EGCO Group has currently a total equity capacity of 6,317 MWe (including both power plants that already started commercial operations, and projects under construction). Total equity capacity from renewable energy is as high as 1,363 MWe (or 22% of the total power capacity), which includes biomass, hydropower, solar power, wind power, fuel cells, and battery storage. Its power plants and other projects are located in eight countries, namely Thailand, Laos PDR, the Philippines, Indonesia, Australia, South Korea, Taiwan and USA. In addition, its energy-related businesses include the Extension of Petroleum Pipeline System in Northeastern Project (TPN), "EGCO Rayong" Industrial Estate Development Project, the license to source and supply natural gas in Thailand, the "Peer Power" financial technology company, the "Innopower" innovation research and development company. EGCO Group has been included in the Dow Jones Sustainability Index (DJSI) for three consecutive years.