Bangkok Post – Asia’s green energy switches to biomass

SET-listed Asia Green Energy, a local bitumen trader and logistics service provider, is restructuring its business with a greater focus on the green segment following a new biomass acquisition.

The company is buying an additional 292.1 million shares in Asia Biomass Plc (ABM), a biomass fuel producer, for 380 million baht, said Panita Kuansataporn, deputy managing director of Asia Green Energy.

The transaction, which is expected to be completed in the last quarter of this year, is being carried out through a share exchange and tender offer.

Asia Green Energy will transfer shares in two of its companies to ABM: 24% of QTC Energy Plc and 100% of Green RDF Co.

The new share purchase will increase Asia Green Energy’s stake in ABM to 51-100% from the current 7.42%.

The asset acquisition comes as ABM is restructuring its business portfolio with a greater focus on eucalyptus-derived biomass, waste-to-fuels for cement producers and power transformer manufacturing.

A higher share in ABM will increase green business revenues for Asia Green Energy and result in a lower share of coal trading revenues.

The share of revenue from the coal business will fall to 75% next year, from 95% now, Ms. Panita said.

Asia Green Energy also plans to generate more revenue from so-called “sustainable businesses”, including logistics services.

The company will expand its logistics services to reach customers in the agricultural and industrial sectors.

The company will continue to increase sales of waste-derived fuels through its subsidiary Green RDF.

Asia Green Energy has also diversified into other business areas, including taxi services from Suvarnabhumi Airport and electric vehicle (EV) leasing.

The company has also set up a firm to act as a vehicle dealer for Chinese electric vehicle brands – Omoda & Jaecoo and Neta – and Mitsubishi.

Ms Panita expects the auto business to generate nearly 2 billion baht in revenue in the first year.

She said she expected the firm to move from red to black on its balance sheet next year after a 264 million baht loss in the first half of 2024.