Asia Green Energy shifts to biomass

SET-listed Asia Green Energy, a local bituminous trader and logistics service provider, is restructuring its business by focusing more on the green segment, following its new biomass acquisition.
The company is buying an additional 292.1 million shares in Asia Biomass Plc (ABM), a manufacturer of biomass-derived fuels, for 380 million baht, said Panita Kuansataporn, deputy managing director of Asia Green Energy.
The transaction, scheduled to be completed in the final quarter of this year, is via a share swap and tender offer.
Asia Green Energy will give ABM shares in two of its companies: a 24% share in QTC Energy Plc and a 100% share in Green RDF Co.
The new share purchase will increase Asia Green Energy’s ownership in ABM to between 51% and 100%, up from a 7.42% share at present.
The asset acquisition is being made as ABM is restructuring its business portfolio by focusing more on eucalyptus-derived biomass, the production of refuse-derived fuel for cement makers and power transformer business.
The higher share in ABM will increase revenue from green business for Asia Green Energy and result in a lower proportion of revenue from the coal trade.
The revenue proportion from the coal business will fall to 75% next year, down from 95% right now, said Ms Panita.
Asia Green Energy also plans to rack up more revenue from what it calls “sustainable businesses”, including logistics services.
The company will expand the logistics services to cover customers in the agricultural and industrial sectors.
It will continue to increase sales for refuse-derived fuel through its subsidiary Green RDF.
Asia Green Energy has also diversified into other businesses, including taxi services from Suvarnabhumi airport and electric vehicle (EV) leasing.
The company also set up a firm to be a car dealer for Chinese EV brands – Omoda & Jaecoo and Neta – and Mitsubishi.
Ms Panita expects the car business to generate almost 2 billion baht in revenue in the first year.
She said she believes the firm will shift from red to black on its balance sheet next year, following a loss of 264 million baht in the first half of 2024.