Banpu unveils ‘Energy Symphonics’ strategy for long-term growth

Banpu, Thailand's leading energy provider, has made a strong commitment to translate its strategic plans into actionable steps, aiming to excel in the era of energy transition towards sustainable stability, CEO Sinon Vongkusolkit told a press conference on Friday. 

He unveiled the company's new strategy, "Energy Symphonics", which is designed to guide Banpu’s business initiatives through 2030 with a focus on promoting sustainable energy transformation.

The plan includes a US$3-billion investment over the next six years, focusing on natural gas, efficient mining, and advanced technologies such as carbon capture, utilisation, and storage (CCUS) as well as battery energy storage systems. 

He said that 60% of the investment budget would be allocated to gas and CCUS, while the remaining 40% would support other business units, including mining and battery storage.

"Energy Symphonics embodies our coordinated strategy to develop innovative and sustainable energy solutions that meet the world's increasing energy demands while caring for the planet. We are committed to tackling the energy trilemma directly, redefining the standards for reliable, affordable, and sustainable energy," he stated. 

Banpu's new strategy underscores its commitment to lead a responsible and sustainable energy transition by focusing on three essential goals: energy security, which ensures a reliable and consistent energy supply; energy equity, aimed at providing affordable and accessible energy for all; and energy sustainability, which seeks to minimise environmental impact. 
 

The strategy is built around four key missions: 

▪︎ Net zero by 2050 and decarbonisation, with plans to reduce greenhouse gas emissions by at least 20% and limit coal-related earnings to less than 50% of consolidated earnings before interest, taxes, depreciation, and amortisation by 2030.

▪︎ The company aims to expand its “winning formula” that integrates gas upstream, gas-fired power, and CCUS to provide low-carbon gas solutions in the US while maintaining strong cash flow.

▪︎ Banpu is accelerating its renewable energy initiatives across the Asia-Pacific region and beyond, planning synergistic investments in battery energy storage systems, downstream businesses, and carbon credits to address renewable intermittency and enhance overall value.

▪︎ The company is adopting Intelligent Mining techniques, incorporating smart solutions and artificial intelligence to improve efficiency, reduce costs, and lessen environmental impacts. Additionally, Banpu will invest in strategic minerals essential for the energy transition.

Sinon emphasised that the four key pillars align with five significant trends shaping the energy industry: the push for net zero emissions, the rise of AI-driven data centres, increased electrification, the need for greater resilience, and evolving demographics. 

"These trends are driving a substantial increase in energy consumption," he said. "It is Banpu's responsibility to identify solutions that effectively balance energy demand with stable production and sustainability."
 

According to Banpu's Energy Symphonics, the company’s  earnings before interest, tax, and depreciation (EBITDA) is projected to increase by 1.5 times from the 2023 EBITDA base of $1.562 billion by 2030.

A recent report from Gartner said that artificial intelligence (AI) and generative AI (GenAI) are huge consumers of electricity, with forecasts that consumption by data centres could grow by up to 160% over the next two years. Gartner anticipates that by 2027, 40% of existing AI data centres will face operational constraints due to power availability.

In the third quarter of 2024, Banpu made significant strides, notably with BKV's successful listing on the New York Stock Exchange, raising $270 million through an initial public offering of 15 million shares at $18 each, while retaining a majority stake. 

The joint venture between BKV Corporation and Banpu Power aims to capitalise on the increasing demand for electricity and data centres in the US. 

Meanwhile, Banpu NEXT expanded its presence in Japan by investing $35 million in Amp Co Ltd, supporting the development of 800 megawatts of renewable solar and wind projects, and nearing completion of the Iwate Tono Battery Farm, with full operations expected by the second quarter of 2025. 

Banpu reported total sales revenue of $1.339 billion and EBITDA of $379 million, but faced a net loss of $24 million due to declining coal and natural gas prices, alongside unrealised foreign exchange losses.

"Despite the challenges of a volatile energy market, Banpu is confident that the Energy Symphonics strategy will drive growth, create long-term value for shareholders, and prioritise all stakeholders, including looking after the planet," Sinon said.