How the coal company is moving towards renewable energy

Coal is one of the largest polluters in the world as its transport, storage and use are responsible for around 40% of global greenhouse gas emissions, according to the United Nations.

Somruedee Chaimongkol, CEO of energy company Banpu Public Company, says she wants to help reduce the Asia-Pacific region's reliance on fossil fuels. The company has operated coal mines in Thailand for nearly four decades.

Chaimongkol, sometimes known as Asia's "First Lady of Coal," became the company's CEO in 2015 and created what she called what she called a "greener, smarter" business plan for the company the following year.

“We have been talking about transformation since 2010. And since 2015, when I succeeded my predecessor as CEO, we've started implementing greener, smarter ones . Over the past five years we've got $ 2 billion and 90% of that … A greener investment, like gas, like renewable energy, and energy technology, ”Chaimongkol told CNBC's“ Managing Asia: Sustainable Future ”.

" A lot of megatrends are happening - digitization, decarbonization, decentralization - and that has accelerated Banpu to develop a new, greener and smarter strategy, ”she added.

The Thai Ban Pu Coal Company Limited, founded in 1983, began operations in the country's northern Lamphun province and is listed on the Thai stock exchange six years later. It adopted its current trade name in 1993 and expanded to other parts of Southeast Asia and China in the years that followed.

Last year, Banpu founded Next, which includes its energy technology businesses, including electric vehicles, renewable power plants, and electric ferries.

Banpu's 2020 annual report shows that coal accounted for more than 95% of Banpu Public Company Ltd's sales in 2020, a number roughly in line with 2019. The same annual report shows that, including the company's foreign subsidiaries, more than 80. coal accounted for% of total sales.

The company has acquired natural gas assets in the United States in recent years.

In March, the company announced that it would generate half of its revenues with “green” energy by 2025.

"We're building renewables faster in Japan, Vietnam and China ... And we founded Banpu Energy Australia," said Chaimongkol.

Electric vehicles

The company also wants to create an energy "ecosystem" within Banpu NEXT that everything from energy generation and storage to the distribution and construction of charging stations for electric vehicles. Chaimongkol said the division could generate "significant" revenue by 2025.

“Under Banpu NEXT, the largest contribution to sales still comes from the generation of energy from solar and wind parks. In the future we will be on ... Power engineering, "she explained.

One aspect of the new system is a technology platform that will help manage fleets of electric three-wheeled taxis known as tuk-tuks, as well as four-wheeled vans. “What we are selling to our customers is selling the platform, selling the solution, managing ... a fleet ... e-charging station", Explained Chaimongkol. In November, Banpu NEXT launched an electrically powered ferry that will operate trips for tourists around the Thai island of Phuket, and in March invested in Urban Mobility Tech Co (UMT), an EV ridesharing company based in Bangkok.

A mini electric vehicle from Banpu Next in Bangkok on February 26, 2021.

Romeo Gacad | AFP | Getty Images

Will Banpu ever get out of coal mining altogether? Not for the next five to ten years, Chaimongkol said, as customer demand will continue. But the company won't invest in new coal plants, she said. Instead, it will pump money into renewable energies, thus reducing the contribution of coal to the company's sales.

Chaimongkol said future business plans would "embed" sustainable policies and gave the impression that she wants to move away from her nickname "First Lady of Coal". “Right now, Banpu is changing and… our direction is towards a greener, smarter one . But if When we talk about running the company, I would say that Banpu is an energy company, "she said. Her leadership is to ensure that the managers of the company's four businesses - Minerals, Gas Production, Conventional Coal Power, and Banpu NEXT - are on the "greener" strategy, she added.

Banpu has been selected as a member of the Dow Jones Sustainability Indexes benchmark, which Chaimongkol hopes will appeal to investors, for seven consecutive years. Companies are selected based on an evaluation of ESG (Environmental, Social and Governance) criteria.

"I hope the investor will see this strong ... commitment to be a conscious company. I hope this will be reflected in the future value of the company, "she said.

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