Higher electricity generation capacity will no longer be a primary goal of SET-listed Absolute Clean Energy (ACE), a local biomass power developer and operator, as it focuses more on a net zero-driven policy for its business direction.
Capacity expansion plans will be guided by the new aim of achieving a net-zero target, a balance between greenhouse gas emissions and absorption, by 2050, said chief executive Tanachai Bunditvorapoom.
With this direction, capacity should rise significantly over two years, he said.
ACE planned to increase electricity generation, following advice by a financial consultant, when it was listed on the stock market via an initial public offering scheme several years ago.
Setting the capacity as a goal makes it more convenient for investors to assess the enterprise's value and market capital. However, ACE's additional capacity mainly depended on the results of its bids in the government's renewable schemes, which are often uncertain, said Mr Tanachai.
ACE previously intended to have 1,000 megawatts in power generation capacity by 2024 but missed the target, which it attributed to bidding uncertainties and the impact of Covid-19.
"It's better to use a net-zero target for our direction, which also aligns with the global trend," said Mr Tanachai.
ACE has carried out 89 power projects, including waste-to-energy, biomass, biogas, solar power and gas-fired power plant projects. Their combined capacity, including power plants under construction, currently stands at 726.15MW.
Its gas-fired power plant in Chachoengsao is scheduled to retire in 2042 before the 2050 net-zero goal.
Mr Tanachai expects the company to have additional power generation capacity of 87.98MW this year from 10 solar farms, rooftop solar panels and two community waste-to energy projects: one in Udon Thani and the other in Nakhon Ratchasima.
In 2026, 28 projects are also set to start commercial operations, he said.
Waste-fired power plants emit carbon dioxide, but separating waste for fuel is better than burying it because organic substances in wet garbage can become methane, a more potent greenhouse gas than carbon dioxide.
