Ua Withya PCL (UWC), Thailand-based industrial equipment manufacturer, has acquired a 9.9-megawatt biomass power plant in Nakhon Rachasima from the former owner for 525 million baht ($14.5 million).
This is the company’s third acquisition of biomass-based power plants. Earlier, it had bought two small power plants located in Nakhon Si Thammarat and Khon Kaen.
According to the company’s statement, the power plant has secured a power purchase contract from the Provincial Electricity Authority and it will generate 220 million baht in annual revenue, starting from the fourth quarter of this year.
This acquisition will help it achieve renewable energy capacity of 50 megawatts this year, UWC’s managing director Peratus Dhanarachwattana said in the statement.
“We have adjusted the technology to enable the power plant to use various feedstock and make the yield increase from 17 to 22 per cent,” he said.
To secure raw material for feedstock, it also prepares to grow energy crops on the land of 8,000 rais in Nakhon Rachasima.
This power plant is also exempt from income tax until 2019 and is subjected to 50 per cent tax in the subsequent five years as it has been approved the incentives from the Board of Investment.
Earlier the company had disclosed that it was in talks to make joint ventures or acquisitions with four renewable power plant projects in Thailand and abroad. It set aside an estimated investment of 4 billion baht for these projects.