Thailand faces the huge problem of waste disposal with less than 25% of annual waste being properly managed. Thailand government has actively encouraged energy-from-waste production by enhancing public awareness, and sharing knowledge related to waste management with municipalities and concerned authorities. (Jiaranaikhajorn 3). As an incentive, it has allowed Bt3.50/kWh for power produced from incineration a tax and other tax benefits.
TPI Polene Power Co., Ltd. (“TPI Polene Power”) operates the Refuse Derived Fuel plant (“RDF plant”) in Saraburi Province of Thailand where its cement plants are situated. The production of RDF from solid waste allows its efficient utilization in the form of electricity in RDF-fueled power plants. In comparison to landfill and dumping ground, the benefits are twofold – generation of electricity and reduction in environmental impact (“Information Memorandum” 31).
TPI Polene Power has two operating waste-to-energy power plants of 20 MW and 60 MW capacity. Both the plants utilize waste heat emitted from cement plants along with RDF to generate electricity. The third waste-to-energy power plant of 90 MW capacity is under construction and expected to be commissioned by January 2017 (“TPI Polene” 2). The company produces 1,550 Ton/hr of RDF for its existing plants. It has to augment its production capacity of RDF for the third power plant. The company has following policies for sourcing raw materials for the production of RDF: (i) Mutually beneficial agreements with the government authorities and private entities responsible for waste management. This is win-win solution for both the parties as the expenses for waste disposal is reduced beside efficient disposal of waste. (ii) Encourage third parties for RDF production. (iii) Transportation of sorted waste or RDF by using same transportation system used for transporting cement.
With the government encouragement, more parties have entered into business of RDF production. There will be more competition in the field as technology matures. However, TPI Polene Power with its experience in power production will be in advantageous position.
Work Cited
Jiaranaikhajorn, T. “Overview on Waste Management in Thailand”. Waste and Hazardous Substances Management Bureau, Pollution Control Department (PCD), Thailand, n.d. Web. 18 July 2016. Web. 18 July 2016.
.” Information Memorandum on Asset Disposal Transaction of TPI Polene Public Company Limited”. Schedule (2) of the Notification of the Board of Governors of the Stock Exchange of Thailand, 4 March 2016. Web. 19 July 2016.
“Low Carbon Energy from Waste”. Waste2Tricity International (Thailand) Co., Ltd, Thailand, n.d. Web. 18 July 2016.
“TPI Polene”. Krungsri Securities Research, Krungsri Securities Public Company Limited, Bangkok. 4 September 2015
