TPI Polene Group is a diverse industrial conglomerate consisting of over 20 subsidiaries engaged in various sectors, including petrochemicals and chemicals, construction materials, renewable energy, and bio-green agricultural products like fertilizers, growth hormones, soil enhancers, and health care products. The group is committed to innovation in both product development and manufacturing processes, aligning with principles of the bio-circular-green economy and environmental, social, and governance (ESG) standards. Their motto, “We Build the Future,” reflects its dedication to leaving a positive impact on the world. The group’s history dates back to 1978 when it started producing plastic polymers and later became the first company to establish a fully-integrated petrochemical plant in Southeast Asia. Today, the Group holds the distinction of being the largest single-location producer of high-value added (HVA) EVA polymer in Southeast Asia, a versatile material used in various industries, including manufacturing, hotmelts/adhesives, and photovoltaic (PV) applications.
Over the years, TPI Polene Group has diversified its portfolio from petrochemical industry to cement production and building materials. It has also ventured into renewable power generation through waste-to-energy (WTE) processes, primarily using municipal solid waste (MSW) as a resource. Additionally, the company has delved into the creation of bio-organic products for agricultural applications, contributing to sustainable agriculture practices in Thailand.
The group’s vision is firmly grounded in sustainable growth, guided by the principles of a bio-circular green (BCG) economy. To achieve this, TPI Polene Group places a strong emphasis on research and development, harnessing the expertise of more than 500 scientists and engineers. The company continually refines its processes to enhance efficiency, reducing its carbon and environmental footprint, and expanding its product offerings, which now encompass a diverse range of 5,000 SKUs to meet the needs of its customers.
TPI Polene Group’s tagline, “we build the future,” encapsulates its commitment to delivering top-tier, world-class products in construction materials, adhesive and PV polymers, and bio-organic agricultural products. Simultaneously, the company is actively building power capacities that utilize MSW as fuel, contributing to addressing Thailand’s sustainable “Zero Carbon” policy, following COP28 agreement.
Certifying Commitment
At the close of 2022, TPI Polene Group’s power plants, operated by its subsidiary TPI Polene Power (TPIPP), achieved an impressive milestone by accumulating 5.8 million tons of CO2 equivalent credits. These credits have been calculated internally and represent a substantial environmental achievement. The company is actively working on having these credits certified by the government-sponsored accreditation body known as T-VER. As of now, they have obtained 1.22 million T-VER credits.
In parallel with these efforts, TPI Polene Group is focused on certifying its renewable energy capacity. By the end of 2022, they had amassed a total of 1.45 million I-REC (International Renewable Energy Certificate) credits. While these credits do not currently have monetary value, they serve as a tangible representation of the company’s ongoing commitment to sustainability and the bio-circular green (BCG) economy. These credits can potentially become a valuable asset once the carbon market becomes active in Thailand.
In April 2023, the company completed the retrofitting of its 70MW hybrid municipal solid waste (MSW)-coal power plant, transitioning it to run solely on 100% MSW. Furthermore, they embarked on the challenging task of converting their 150MW coal-fired power plant into one that operates on 100% waste-to-energy (WTE) MSW. This conversion project is divided into three phases and is scheduled to be completed by the end of 2025. The ambitious goal is for TPIPP to become fossil-free by 2026, with the capacity to process waste equivalent to 12 million tons of CO2 according to their internal calculations. With 250MW of WTE-MSW power capacity, TPIPP currently stands as the largest privately-owned operator of MSW-fired power plants in Thailand and Southeast Asia.
Recognizing the environmental impact of cement production, TPI Polene Group is actively pursuing measures to “green” its cement and building products. While this transformation is expected to take time and involve multiple technological components, the company has initiated significant efforts:
Substituting Coal with MSW: The company is reducing the carbon footprint associated with clinker production by substituting coal with waste-to-energy municipal solid waste (WTE-MSW). By the end of 2022, it completed a three-year project allowing for the 25% substitution of coal with MSW.
Renewable Energy: TPI Polene Group is actively investing in renewable energy sources to power its cement plants. The Group is constructing three solar projects and a wind turbine power plant adjacent to its cement plant facilities. By 2025, nearly 100% of the power used by its cement plants will be sourced from renewable capacity.
Efficiency and Waste Reduction: To further mitigate greenhouse gas emissions and enhance efficiency, the company has implemented several projects. These include the installation of a conveyor belt from the quarry to the cement production facility to reduce dust and save diesel costs, the conversion of quarry trucks into electric vehicles (EVs), and the installation of a plant to process quarry by-products, resulting in zero waste industrial complex.
Through these initiatives, TPI Polene Group is actively contributing to reducing its environmental impact and advancing sustainability in the cement and building materials sector.
Powering Progress
The diversification into renewable power production marked a significant step forward for TPI Polene Group and was a natural extension of its innovative approach to waste heat recovery from the clinker/cement manufacturing process. The company has made substantial progress in this area, boasting a 40 MW capacity for waste heat power generation. Furthermore, with ongoing expansion efforts, it has added 250 MW waste-to-energy municipal solid waste (WTE-MSW) fired power plants as of April 2023.
This move into renewable energy production has brought about multiple tangible benefits for the group:
- Impressive EBITDA Margins: The group’s business has consistently maintained a strong EBITDA margin over the last eight quarters, with a range of 45-55%. For more detailed financial data, one can refer to the SET (Stock Exchange of Thailand) filings of TPI Polene Power (TPIPP).
- Resilience Against Rising Coal Prices: Despite the historically high coal prices experienced in 2021-2022, the group was able to sustain a high EBITDA margin, thanks in part to the substitution of coal with WTE-MSW.
- Green Cement & Building Products: By partially replacing coal with MSW in the clinker production process, the group achieved cost savings and the ability to produce Green Cement & Building Products. These products align with government initiatives promoting sustainable construction materials and contribute to the country’s climate goals. The launch of Green Cement & Building Products took place on June 1, 2023.
- Garbage Management and Community Benefits: TPI Polene Group’s garbage processing efforts have helped local communities address the growing issue of cleaning up landfills and Thailand to achieve national ‘zero carbon emission” commitment to the world.
These tangible benefits underscore the strategic importance of diversifying into renewable energy and waste-to-energy solutions, which not only enhance the company’s sustainability but also contribute positively to its financial performance and the well-being of the communities it serves, and the world overall.
Towards a Greener Future
TPI Polene Group has set ambitious sustainability goals, with a commitment to achieving net-zero status by 2030. To realize these objectives, the company has established a comprehensive Sustainability Ecosystem for its production facilities.
In the medium term, the group has outlined several key objectives:
- Increase production of Green Cement & Building Products and introduce more environmentally-friendly, innovative building materials
- Complete the plant modification program and power capacity expansion projects on time and on budget as well as complete the switch to EV not only the quarry dump trucks but for the trucks used logistics as well as other renewable power supply
- Continued R&D to move even to a higher HVA level for the group’s specialty polymer
- More R&D to expand the range of applications of the group’s bio-organic compounds in agriculture and healthcare
- Leveraging on our IP in waste processing, seek-out investment opportunities in the Asian region in technical collaboration(s) but preferably as an investor(s)
Drive for Plant Efficiency and Cost Reduction
The rate growth in the demand for construction materials in Thailand has reached maturation and with it comes the intensifying competitive landscape. TPI Polene Group’s main coping mechanism is by continuously improving plant efficiency and reducing per unit production cost. Strong in-house R&D capability is very crucial to the sustainability of its strong cashflow generation as well as market position not only by offering competitive but by introducing new products as well.
Vision for Business and Society
TPI Polene Group’s philosophy centers on optimization of business growth and societal progress for the benefits of all stakeholders as well as the world communities. This commitment is evident through various initiatives and funds aimed at public health, occupational safety, and environmental conservation. The company’s ESG activities extend beyond financial contributions and include projects like installing community drinking water machines and supporting local communities by adding value to municipal solid waste (MSW), particularly in Thailand’s central region. During the peak of the COVID-19 pandemic, TPI Polene Power (TPIPP) leveraged its advanced waste handling capabilities and became the first private company granted a license to process COVID-19 waste, contributing to public health efforts.
