Banpu Thailand Plans Electricity Investment in the US - iTrade CGS International
Thai energy company Banpu plans to invest at least US$1.5 billion in expansion in the US to capitalise on the surge in electricity demand driven by data centres.
Its US unit, BKV, is considering new builds and acquisitions of gas-fired power plants to add around 1,000 megawatts of power generation capacity, said Banpu chief executive Sinon Vongkusolkit.
Banpu will focus on new power plant projects and acquisitions in Texas, where the company operates two gas-fired power plants through its US-listed subsidiary.
US electricity consumption continues to rise, partly driven by the rapid expansion of data centres supporting artificial intelligence (AI) and cloud computing. This trend is expected to continue in the coming years, tightening supply in some regions and creating opportunities for newcomers and capacity expansions.
“The US energy business will be the main revenue driver, supported by sustained demand from data centres and AI,” said the 36-year-old CEO. “Valuations have increased, but the long-term growth outlook continues to justify investment.”
The company has one business focused specifically on coal, and a broader energy operation that includes coal, gas, and renewables.
Banpu is gradually shifting from its traditional coal business towards cleaner and more stable revenue streams, including gas-fired power and renewables.
However, a surge in coal demand triggered by supply disruptions in Middle Eastern oil and natural gas has provided an unexpected boost to Banpu’s coal business, even as the company accelerates its transition to a more diversified energy portfolio by ramping up renewable energy investments.
Thailand’s largest coal producer has prepared to increase production at its mines in China, Indonesia, and other countries because several new customers have approached the company for potential purchases, he said.
Banpu’s two power plants in Texas were acquired in 2021 and 2023, with a combined total capacity of around 1,500 megawatts each. These plants primarily sell electricity to the state’s power market. According to its website, Banpu also operates power plant projects in China, Laos, Vietnam, and Australia with a total capacity of 3,000 megawatts.