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Thai investor secures export financing for geothermal project in Japan

Umi Jigoku, one of the Hells of Beppu, Kyushu Island, Japan (source: Mkill, CC BY 2.5)
Alexander Richter 15 Nov 2017

Thailand-based Thai Luxe Enterprises has secured financing of $18m from Thailand's Export-Import Bank for its eight small-scale geothermal projects in Beppu, Oita Prefecture in Kyushu/ Japan.

Reported locally, Thailand-based Thai Luxe Enterprises Plc. has secured a financial facility agreement worth around JPY 2,205 million (around $18 million) from the the Export-Import Bank of Thailand. The financing will support the company’s investment into eight geothermal power projects in Japan with a combined power generation capacity of 1,000 kW (1 MW) in Beppu, Oita Prefecture, Kyushu/ Japan. We previously reported on the projects.

Mr. Pisit Serewiwattana, President of Export-Import Bank of Thailand (EXIM Thailand), and Dr. Pongrak Chindasombatcharoen, Chairman of Executive Committee of Thai Luxe Enterprises Plc. (TLUXE), and General Chaowarit Prapajit, Chief Executive Officer of TLUXE, jointly signed the financial facility agreement at EXIM Thailand’s Head Office to finance TLUXE’s investment these projects. The company has planned power sales to Kyushu Electric Power Company at a tariff rate of 40 yen/unit over a 15-year term (or around $0.358/ kWh).

EXIM Thailand President said EXIM Thailand is ready to render financial support to Thai entrepreneurs investing overseas, especially in new types of power business. TLUXE is the first Thai enterprise to engage in geothermal power plant business in Japan, using geothermal heat to generate electricity. This is in line with Japanese government’s policy to promote the use of renewable energy sources to secure supply of energy appropriate for the country’s economic and social environment.

“EXIM Thailand’s support of TLUXE’s geothermal power plants in Japan will not only serve as a prototype for other Thai entrepreneurs’ future endeavors in this area, but also allow for Thai entrepreneurs’ access to renewable power production technology and know-how. This will also further both countries’ sustainable economic and social development, in line with EXIM Thailand’s main mission and policy to develop its financial facilities in response to Thai entrepreneurs’ needs in their international trade and investment of the new era,”” added Mr. Pisit.

Source: Thai PR