Loxley Plc, one of Thailand’s largest trading conglomerates, is turning once again to renewable energy, with 3 billion baht earmarked for the next five years.
“We’ve begun focusing again on renewable energy,” said president Thongchai Lamsam.
“Loxley’s joint-venture solar farm will start operations soon, and next we’ll develop energy from algae, wastes and wind.”
The 8.67-MW facility on a 215-rai site in Prachin Buri province is being built at a cost of nearly 1 billion baht, with operations scheduled to begin in earnest late this year.
The solar power venture is being managed by L Solar, which was founded last year with registered capital of 220 million baht.
Loxley holds a 45% stake in L Solar, MFC Asset Management through its energy fund holds 24.99%, and a private investor who is a Loxley executive 14%. Leonics, a leading Thai supplier of solar cells, owns the remaining 16.1%.
The Export-Import Bank of Thailand has provided a 600-billion-baht loan for the project, which is expected to take eight years to break even.
L Solar has already signed a power purchase agreement with the Provincial Electricity Authority, said Piboon Piboontum, the company’s vice-president for financial management.
“We want to become a leading player in renewable energy with 24 MW of combined capacity from three sites within two years,” he said.
“This will mark Loxley’s return to the power business after exiting projects in Thailand and Laos earlier.”
Mr Thongchai said a learning centre for renewable energy was also planned for the solar farm through a partnership with leading educational institutes including King Mongkut’s Institute of Technology Ladkrabang.
Loxley will act as a comprehensive service provider for appropriate technology procurement and funding as well as engineering, procurement and construction contracting.
“Loxley’s strength is we have strong business partners and our own sophisticated technology,” said Mr Thongchai.
“We also have experts and proprietary knowledge to support research and development (R&D) in commercial applications for renewable energy.”
Loxley has been closely involved in renewable energy for some time. It most recently signing an R&D agreement with the Energy Ministry, Bangchak Petroleum and Ratchaburi Electricity Generating Holding Plc to make biodiesel from algae.
The project expects to produce 30,000 litres a day by 2013.
