KMCT (Thailand)
KMCT (Thailand)
KMCT (Thailand) Co., Ltd., located in Rayong Province, is a joint venture between Kobelco & Materials Copper Tube (KMCT, Japan) and Thai partners. The company specializes in manufacturing high-quality copper tubes for use in air-conditioning, refrigeration, and heat-exchange systems. With the global demand for energy-efficient HVAC systems growing rapidly, KMCT Thailand plays a crucial role in supporting both domestic markets and export supply chains across Asia.
As a precision copper tube manufacturer, KMCT requires continuous, stable, and high-quality electricity to support production. Current peak demand is estimated at 5–6 MWe, with additional indirect energy needs for cooling and process operations. To remain competitive in global markets, KMCT faces increasing requirements from international buyers and regulatory frameworks such as CBAM (Carbon Border Adjustment Mechanism) and RE100 supply chain commitments to decarbonize its operations and reduce carbon intensity.
Industrial Relevance: Copper tubes are an essential component in HVAC and refrigeration industries, which are themselves transitioning to low-carbon and high-efficiency products.
Energy Demand: Estimated at 5–6 MWe continuous load, making KMCT an ideal industrial anchor offtaker for a renewable energy solution.
Sustainability Drivers: By adopting green electricity, KMCT can market its copper products as low-carbon, CBAM-ready components, reinforcing its export competitiveness.
REpow proposes to develop a 6 MWe biomass power plant to power KMCT’s manufacturing operations in Rayong.
Feedstock: Locally available rice straw, sugarcane leaves, and Napier grass, secured via contracted farming and cooperative networks to ensure reliable supply.
Outputs:
Green Electricity (6 MWe): Stable renewable power to offset fossil-based grid electricity.
Green Thermal Energy: Options for heat integration into KMCT processes.
Certified Carbon Credits: Generated under frameworks such as T-VER, Verra, and Gold Standard.
Climate Impact: Reduction of 50,000–70,000 tCO₂e annually, with additional co-benefits from reducing open burning and improving soil health through composting and biochar applications.
For investors, the KMCT project demonstrates a highly bankable industrial decarbonization case:
Anchor Offtake Security: Long-term PPA or direct supply agreement with KMCT ensures predictable revenues.
Climate Alignment: Project directly supports Thailand’s PDP renewable targets, BCG economic model, and Net-Zero 2065 roadmap.
Export Competitiveness: Enables KMCT to meet EU CBAM standards and RE100 buyer requirements, securing long-term market access.
Carbon Finance: Eligible to generate certified credits, adding resilience and upside to financial returns.
Community Impact: Feedstock programs generate farmer income, rural jobs, and regional ESG co-benefits.
By adopting a 6 MWe biomass power plant developed by REpow, KMCT can transform its Rayong operations into a green manufacturing hub, reducing carbon emissions and securing its position as a low-carbon copper tube supplier to global HVAC and refrigeration markets. For DFIs and Climate VCs, this project provides a unique opportunity to invest in industrial decarbonization, stable energy offtake, and measurable climate impact—all anchored by a globally competitive manufacturing partner in Thailand’s Eastern Seaboard.
Looking ahead, Phase 2 expansion will add another 5–10 MWe per phase, designed to supply direct PPA electricity to neighboring factories within the Rayong industrial zone. This creates a scalable green energy hub, enabling multiple industries in the region to decarbonize their operations while ensuring steady offtake and diversified revenues for investors.