Each week, Power Technology’s writers select a deal that illustrates the themes driving change in our sector. The deal may not always be the largest in value, or the highest profile. But we select it because of what it tells us about where the leading companies are focusing their efforts, and why. We pick apart the deal itself, and the industry theme behind it. This new, thematic deal coverage is driven by our underlying Disruptor data which tracks all major deals, patents, company filings, hiring patterns and social media buzz across our sectors.
The deal
Banpu Power has announced the purchase of the Temple II power plant for 16bn Thai Baht ($471.3m). The purchase was conducted through Banpu’s Temple Generation Intermediate Holdings II holding company, which purchased CXA Temple 2 Holdco, the plant’s operator.
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The parties
Banpu Power is the power generation-focused subsidiary of Thailand-based multinational energy company Banpu PCL. The company owns and operates both fossil based and renewable power sources. Its portfolio of wholly owned or partial investments totals 39 active power projects and two that are under development. Relative to its equity across investments, Banpu has a total generative power capacity of 3.68GW globally.
The Temple II power plant is a 755MW gas-fired power plant situated in Temple, Texas, US. The plant opened for generation in 2015 and is supplied with natural gas from Texas-based producers.
The implications
With the purchase, Banpu consolidates its power generation operations in Temple, Texas, having purchased the Temple I power plant in November 2021. Temple II’s acquisition double’s the company’s power generation in the US where it also operates a power trading business in the Texas market, one of the top seven power markets in the US.
Banpu Power CEO Kirana Limpaphayom stated: “Considering the existing Temple I gas-fired power plant, the strategic proximity between our two power plants, Temple I and Temple II, will generate synergistic value. This will enable us to operate and manage the power plants efficiently, resulting in improved flexibility and reliability in electricity generation.”
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By GlobalDataFor consumers, both power plants returning to the same ownership will likely mean more efficient generation and as such, lower costs, as the two plants can better benefit from organisational synergy. The two plants have the combined capacity to service 1.5 million homes.
Limpaphayom added that the Temple II purchase falls in line with Banpu’s “Greener & Smarter Strategy”. The two Temple plants are among the cleanest gas-fired plants in the US, each emitting less than ten parts per million (ppm) of carbon monoxide and less than 2ppm of nitrogen oxide. This is a result of the Combined Cycle Gas Turbine systems both plants employ, which produce 50% more electricity from an equal amount of fuel than traditional plants.
The purchase also puts Banpu a step closer to its stated aims of achieving 5.3GW of generative capacity by 2025.
