Bangkok--11 Dec--Glow Energy Glow Energy’s joint venture company GHECO-One Co. Ltd has been selected as the preferred bidder for a 660 MW coal fired project in the new round of IPP bidding for 2012. Glow Group owns a 65% share in GHECO-One and Hemaraj Land and Development Plc owns 35%. Glow’s CEO, Peter Termote, commented, “We are very pleased to have been selected as the first IPP in this round of IPP bidding. We are confident that this expansion will assist in diversifying the country’s fuel supply, providing more reliable electricity at a cheaper price Thai people will benefit from our low tariff, especially with current oil prices exceeding 100 USD/Barrel. Fuel diversification has now become a necessity for the country.” The total construction cost for the project is estimated at THB 40,000mn. Work on the project is expected to start around the middle of next year, with commercial operation starting around the end of 2011. The site is in the MTP Industrial Estate, which has been in operation for more than 15 years and is designated for industrial activity, so there will be no adverse effect on the local community. Also many existing facilities (such as the coal harbor and water intake/outlet systems) are already in place, thus reducing the impact on the surroundings. The Company is confident that the project will gain support and acceptance from the Thai people at large. Environmentally, the plant is expected to be one of the cleanest coal-fired power plant in the world. The Sox and Nox emissions would not only be significantly below the World Bank Guidelines and Thai regulations, but the plant will meet statutory limits required for coal-fired plants of even the most stringent international regulations such as the European Union regulations. The project will also enter into a contractual commitment to contribute additional funds aiming to enhance the level of local community development. The fund will contribute to educational development, health care, career development, standard of living improvement, and social development for the communities surrounding the estates. It is expected the contribution of the new plant to this fund to be around THB 100 million per year. On top of this, as a legally binding condition for environmental permitting, the Group will also invest in emission reduction technologies to reduce the emission levels from our (existing) plants so that the total NOX and SOX emission levels in Map Ta Phut will be lower than the current levels after the new coal fired plant becomes operational. In addition to the IPP expansion, the Company is also looking to expand its cogeneration business, whereby potentially, another 250-350 MWe could be added with commercial operation starting from September 2011. Total capex for the cogeneration business could range between THB 11,000mn THB 16,000mn. Peter Termote further added “The third petrochemical phase attracts many new investments or expansions in Map Ta Phut. The new cogeneration expansion will meet the steadily rising steam and electricity demand from Glow’s petrochemical customers and may also include 1 or 2 SPP sales to EGAT of 74 and 90 MW. About Glow Energy Glow Energy is a member of the Glow Group who is a major energy player in Thailand. Glow Group combined installed capacities include 1,708 MW of electricity and 967 tons per hour of steam. Glow Group generate and supply electricity to EGAT Public Company Limited (EGAT) under Thailand's SPP (Small Power Producer) and IPP (Independent Power Producer) programs, as well as electricity, steam, industrial water and services to large industrial customers principally located in the Map Ta Phut area and nearby. SUEZ Energy International is Glow Energy’s major shareholder and is a business division of the SUEZ group, one of the largest international industrial and services groups in the world. For more information about SUEZ or SUEZ Energy International, please visit the companies’ websites at www.suez.com and www.suezenergyint.com. For more information about the Glow Group please go to www.glow.co.th For further details please contact Sirote Vichayabhai Glow Energy Plc. Tel. 0-2-670 1500 Email [email protected]