Banpu in Thailand Abandons Coal, Embraces Green Energy Future
Banpu Plc, a Thai energy giant, is accelerating its transition away from coal, aiming to reduce its contribution to total earnings to less than 50% by 2030. This strategic shift, announced by CEO Sinon Vongkusol, represents a significant turning point for the company, currently deriving 65% of its earnings before interest, tax, depreciation, and amortization (EBITDA) from coal. The company is investing heavily in a sustainable future, planning a dramatic reshaping of its energy portfolio in the coming years.
In 2024, Banpu’s EBITDA reached US$1.33 billion (approximately 47 billion baht), with gas and power supply each contributing 17%, while emerging energy technologies contributed a nascent 1%. This highlights ongoing diversification efforts, now poised for significant acceleration. The company has allocated US$3 billion in investments between 2025 and 2029, prioritizing gas, power supply (including renewables), and cutting-edge carbon capture, utilization, and storage (CCUS) projects. This substantial investment underscores Banpu’s commitment to a greener energy landscape.
Driving this transformation is Banpu’s “Energy Symphonics” strategy—an integrated approach to developing sustainable energy solutions that meet global demand while minimizing environmental impact. Mr. Vongkusol projects this holistic strategy will boost EBITDA to nearly US$2 billion by 2030, aiming for a harmonious blend of energy sources that balances economic growth with environmental responsibility.
While reducing its reliance on coal, Banpu will continue operations in Australia, China, and Indonesia, leveraging artificial intelligence and smart mining technologies to optimize efficiency and reduce costs. The company aims to reduce coal mining costs to $1.50 per tonne in 2025, building on the significant reduction to $3.7 per tonne achieved in 2024. Despite this strategic shift, total coal sales are expected to increase to 45 million tonnes in 2025, up from 42.7 million tonnes in 2024, indicating that coal will remain a part of the company’s portfolio in the near term.
Beyond its existing portfolio, Banpu is exploring new ventures, including nickel mining in Indonesia. Recognizing nickel’s crucial role in electric vehicle battery production, the company aims to finalize its nickel business plan by the end of 2025. This demonstrates Banpu’s forward-thinking approach, aligning with the growing global demand for electric vehicles and related infrastructure. Up to US$500 million is allocated for non-coal investments in 2025, including potential acquisitions, further demonstrating the company’s commitment to diversification.
Banpu sees significant growth potential for non-coal energy in the U. S. and Indonesia, driven by increasing electricity demand from data centers and cloud services. This burgeoning digital economy requires substantial power, fueling demand for gas-fired power generation. The company anticipates Henry Hub natural gas prices to rise to $3.5–$4 per million British thermal units (BTU) in 2025, up from $2 in 2024. This projection underscores the growing importance of gas in the energy mix and aligns with Banpu’s investment strategy, particularly through its U. S.-based gas production subsidiary, BKV. Banpu’s multifaceted approach, combining technological innovation with strategic investments, positions the company at the forefront of the evolving energy landscape and demonstrates a clear commitment to a more sustainable future.
