Climate change is an issue affecting the sustainability and the human’s well- beings. Hence, it has become the global concern pulling collaborations across the world to reduce the GHG emissions and alleviate its impacts. In order to control an increase of the average temperature of the earth to well below two degrees Celsius, the international countries have set up the common goals to reduce GHG emissions. Policies and laws have been put in place to promote the GHG emission reductions in many countries, such as the Emission Trading Scheme (ETS), limiting fuel consumptions in energy productions, and promoting more investments in the renewable energy, etc.
The Company operates power generation business, which has activities causing GHG emissions as follows:
|Direct GHG Emissions (Scope 1)||Indirect GHG Emissions (Scope 2)|
The Company has management approaches to reduce greenhouse gases are as follows:
- Existing Thermal Power Plants
- Thermal power plants in China where BPP has direct management control include the CHP plants in China which are able to consume energy efficiently, having 25% energy loss during a full production capacity of power and steam. Meanwhile the thermal power plants solely generating electricity will lose about 65% of production energy. This has led the CHP plants to have low energy consumption rate and GHG emissions intensity. The customer’s demand to purchase steam at different times, however, has directly affected the efficiency of energy consumptions and GHG emissions. BPP, therefore, has placed great emphasis on using innovations to improve the power plant productivity. Additionally, BPP together with Banpu Group have monitored and checked the accuracy of GHG emissions database. The three CHP plants’ GHG emissions data have been verified and assured since 2018.
- Thermal power plants which are the joint venture companies, namely BLCP Power Plant and HPC Power Plant, have focused on the quality management and annual maintenances, inclusive of implementation of the information system to predict a machinery maintenance before it is broke down (Predictive Maintenance). This will have an effect on the power plants’ efficiency, lowering the fuel consumption rate per unit of product and having the equivalent availability factor (EAF) as designed. These factors are the key performance indicators reflecting the readiness and efficiency of the power plants, and directly affecting the GHG emissions’ reduction. Consequently, BPP has assigned the Asset Management Unit in collaboration with its business partners who jointly invest in the power plants, to monitor the GHG emissions of its power plants.
Furthermore, BPP is also looking for opportunities to use a variety of fuel in response to the stakeholders and be able to procure fuel supply in the areas such as natural gases, biomass and industrial waste gases, etc. This includes the investment in the hydrogen industry, expected to grow rapidly in the future and will finally help reduce the overall GHG emissions.
- Thermal power plant projects under development and production capacity expansions
BPP has chosen the clean and high efficiency technology to develop the thermal and combined heat and power plant projects in the future. For example, using the Ultra- Supercritical technology, the latest technology for thermal power plants, to design and construct the Shanxi Luguang (SLG) Power Project, a construction of which was completed in the beginning of 2021.
Additionally, BPP is looking for the future investment opportunities related to power generations from natural gas, renewable energy, and environmentally friendly energy industries such as the hydrogen industry. This is a form of clean energy that is growing rapidly. Using hydrogen as a power fuel source can play a significant role in reducing the GHG emissions.
- Renewable Power Plant and Energy Technology Projects
BPP has set its targets to invest in the renewable power plant projects of no less than 800 MWe by 2025 through Banpu NEXT in which Banpu Power has invested 50% of shares. It has also expanded its businesses to the energy technology, such as the solar rooftop, the energy storage & system, the electric vehicle, the smart community development and the energy management system, etc.
Climate Change Policy
The Company together with Banpu Group has established the Climate Change Committee to be responsible for managing the climate change risk holistically, leading to a reduction of GHG emissions in the future.
Looking for opportunities to invest in energy, renewable energy as part of a low-carbon society in the future through the investment in Banpu NEXT. In the past year, Banpu NEXT increased expanded its renewable energy production capacity to 694 MWh. BPP holds a 50% stake in Banpu NEXT.
- Operation Risk Management: BPP has adopted the Business Continuity Management System (BCMS) in preparation for events interrupting business operations such as natural disasters, decease epidemics. Consequently, the company will be able to deliver products and services to customers and various stakeholders immediately.
- Changes in policies and regulations regarding energy and GHG emissions: BPP has a responsible unit to monitor and anticipate changes in regulations in all areas open for operations at the local level and the central government in order to be able to adapt itself to the changing environmental quality standards that are more extreme. At the same time, it is looking for opportunities to invest in the renewable energy business receiving more supports from the government.
In the past year, the Company used the internal carbon price which would determine the GHG cost in various areas used as part of the cost to analyze the investment value and possibility of new projects in the future. The Company focused on low carbon emission projects and factors to reduce the Company’s GHG emissions reduction in order to achieve the goal set and to be prepared for adaption to the possibility of legal changes and enforcement to reduce GHG emissions in the near future.
The Company conducted a preliminary assessment of indirect GHG emissions (Scope 3) which involved operational activities as follows: