Banpu One Report 2023 EN

["ANNUAL REPORT 2023 \n(56-1 ONE REPORT) \nBANPU PUBLIC COMPANY LIMITED \nDRIVING F RWARD \nSUSTAINABLE GROWTH \nAND BETTER LIVING FOR ALL","CONTENTS \n136 \n Dividend Policy \n137 \n Risk Management \n152 \n Driving Business for Sustainability \n156 \n Management of Stakeholder Impacts \nin Business Value Chain \n160 \n Sustainability Management \u2013 \nEnvironmental Aspect \n164 \n Sustainability Management \u2013 \nSociety Aspect \n173 \n Corporate Social Responsibility (CSR) \n188 \n Management\u2019s Discussion and \nAnalysis 2023 \n210 \n Financial Ratio \n211 \n Other References \n212 \n Significant Litigation \nDuring the Year \n22 \n Policy and Business Overview \n24 \n Banpu Group\u2019s Map of Operations \n26 \n Vision & Mission \n27 \n Summary of Major Changes and \nDevelopment in 2023 and Current Events \n33 \n Banpu Information \n34 \n Revenue Structure \n36 \n Products and Services \n55 \n Market and Competition \n98 \n Business Assets \n108 \n Coal and Natural Gas Reserves \n110 \n Banpu Group Structure \n112 \n Detail of the Company, Its Subsidiaries, \nAssociated Companies, Joint Ventures \nand Other Investment of Banpu \nPublic Company Limited \n128 \n Shareholders \n129 \n Security \n130 \n Debenture \nPART \n1 \nBUSINESS AND OPERATIONAL RESULTS \nThe Board of \nDirectors\u2019s Review \nOperational \nResults \nFinancial \nHighlights","In case this Annual Report (Form 56-1 One Report) reference information disclosed on the \nCompany\u2019s website, the disclosed information shall be deemed to be part of Form 56-1 \nOne Report. The Board of Directors certi\ufb01es the correctness and completeness of \ndisclosed information and annual information disclosure in Form 56-1 One Report. \n296 \n Attachment 1: \nDetails of the Board of Directors \nand Management \n310 \n Attachment 2: \nDetails of the Management \nand Controlling Parties of Banpu \nand Its Subsidiaries \n216 \n Corporate Governance Policy \n240 \n Corporate Governance Structure \n266 \n Corporate Governance Performance \n271 \n Report of the Corporate Governance \nand Nomination Committee \n274 \n Report of the Compensation Committee \n276 \n Report of the Audit Committee \nto Shareholders \n280 \n Report of the Environment, Social, \nand Governance Committee \n282 \n Internal Control \n286 \n Connected Persons and Transactions \n288 \n Related \u2013 Party Transactions \nand Relationships \nPART \n2 \nCORPORATE GOVERNANCE \nPART \n3 \nCERTIFICATION OF INFORMATION \nAND DATA ACCURACY \nChief Executive \nO ! \ncer\u2019s Review","DRIVING F RWARD \nSUSTAINABLE GROWTH \nAND BETTER LIVING FOR ALL \nWe are moving forward to develop and align our businesses with \nfuture energy trends by leveraging the Banpu\u2019s Business Ecosystem in \nall countries of operations and expanding investments in high-growth \nS-curve businesses that utilize advanced technology and demonstrate \nlong-term competitiveness with an emphasis on creating synergistic \nvalue within our existing business portfolio. \nWe always adhere to the ESG principles, prioritizing environmental, social \nand governance aspects. These principles are the pillars of our business \noperations, supporting \nBanpu Public Company Limited \nis embarking \non the \ufb01fth decade of business operation as \nan international \nversatile energy provider. \n We are accelerating our endeavors toward \nenergy sustainability under the Greener & Smarter strategy according \nto our brand promise, \n\u201cOur Way in Energy.\u201d \n2 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Banpu to achieve robust and sustainable growth while generating \nlong-term positive returns to shareholders and investors and \ncreating sustainable bene\ufb01ts for all groups of stakeholders. \nWe continue to pursue our goal of creating sustainable energy by \ndeveloping energy solutions that address the current and future \nneeds of society and delivering energy that is a ordable, reliable, \n! \nand eco-friendly to ensure equitable access for all. Our aspiration is \nto power every life in creating innovations that foster better living \nfor people, society, and the environment. \n3 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","5,159 \nSales Revenues \nEBITDA \nMillion USD \n1,562 \nMillion USD \nNet Pro\ufb01t \n160 \nMillion USD \nFINANCIAL HIGHLIGHTS \n4 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Total Assets \n13,000 \nMillion USD \nTotal Liabilities \n8,172 \nMillion USD \nTotal Equity \n4,828 \nMillion USD \n5 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","Energy Resources \nEnergy Generation \nEnergy Technology \n34.5 \nMt \nMining Business \nPower Business \nGas Business \nSales Volume \n892 \nMMcfed \nNet Production \nTotal \nCommitted Capacity \nSolar Rooftop & \nFloating Solutions \nBusiness \nEquity-based Capacity \n225 \nMW \nSmart City & Energy Management Business \nSmart City: operating & under development \n27 \n Projects \nE-Mobility Business \nEV Market Expansion Car Sharing Service \n271 \nUnits \nEV Tuk Tuk Service Provided \n16,888 \nPassengers\/Day \nE-Bike Rental \n50 \nunits \nChargers \n711 \nunits \nEnergy Storage \nSystems Business \nTotal Production Capacity \n1.0 \n GWh \nEnergy Trading Business \nElectricity Sales \n760 \nGWh \nCommitted Thermal Equity-based Capacity \n4,008 \nMW \nCommitted Renewables Equity-based Capacity \n645 \n MW \n4,653 \nMW \n6 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","For the Year Ended \n31-Dec-23 \n31-Dec-22 \n31-Dec-21 \n* \nThe Company announced a total dividend of THB 0.45 per share arising from its performance during the period from \n1 January 2023 to 31 December 2023, of which THB 0.25 was paid on 29 September 2023. The remaining dividend \nof THB 0.20 per share for 2023 performance will be paid on 30 April 2024. \nRemark: Financial figures are based on the consolidated financial statement. \nFinancial Position \nTotal Assets \n(Million USD) \n13,000 \n12,638 \n10,946 \nTotal Liabilities \n(Million USD) \n8,172 \n8,229 \n7,843 \nTotal Shareholders' Equity \n(Million USD) \n4,828 \n4,409 \n3,103 \nIssued and Paid-up Share Capital \n(Million USD) \n285 \n243 \n199 \nOperational Results \nSale Revenues \n(Million USD) \n5,159 \n7,693 \n4,124 \nCost of Sales \n(Million USD) \n(3,666) \n(3,616) \n(2,393) \nGross Profit \n(Million USD) \n1,493 \n4,077 \n1,731 \nSelling and Administration Expenses \n(Million USD) \n(556) \n(674) \n(475) \nRoyalty Fee \n(Million USD) \n(379) \n(592) \n(294) \nOther Revenues \n(Million USD) \n219 \n441 \n130 \nOther Expenses \n(Million USD) \n(171) \n(1,182) \n(445) \nProfit from Operation \n(Million USD) \n606 \n2,070 \n647 \nShare of Pro\ufb01t from Joint Ventures \n(Million USD) \n268 \n339 \n227 \nInterest Expenses \n(Million USD) \n(374) \n(257) \n(174) \nFinancial Expenses \n(Million USD) \n(10) \n(8) \n(10) \nCorporate Income Tax \n(Million USD) \n(119) \n(521) \n(198) \nNon-controlling Interests \n(Million USD) \n(212) \n(461) \n(189) \nNet (Loss) Profit \n(Million USD) \n160 \n1,162 \n304 \n EBITDA \n(Million USD) \n1,562 \n3,916 \n1,778 \nFinancial Ratios \nGross Pro\ufb01t Margin \n(%) \n28.9 \n53.0 \n42.0 \nNet (Loss) Pro\ufb01ts to Total Revenues \n(%) \n2.8 \n13.7 \n6.8 \nReturns on Assets \n(%) \n1.2 \n9.9 \n3.0 \nReturns on Equity \n(%) \n3.5 \n30.9 \n10.3 \nInterest Coverage Ratio \n(Times) \n2.5 \n9.4 \n5.8 \nNet Debt to Equity \n(Times) \n0.90 \n0.74 \n1.31 \nData per Share \nEarnings per Share \n(USD) \n0.018 \n0.162 \n0.049 \nBook Value per Share \n(USD) \n0.48 \n0.52 \n0.46 \nDividend per Share \n(THB) \n0.45* \n1.20 \n0.45 \n7 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","OPERATIONAL RESULTS \nFor the Year Ended \n2023 \n2022 \n2021 \nCoal Sales Volume (Million Tonnes) \nSources - Indonesia (ITMG) \n17.0 \n16.3 \n18.2 \nOther Sources \n4.0 \n2.7 \n1.9 \nTotal Sources - Indonesia \n21.0 \n18.9 \n20.1 \nSources - Australia \n7.0 \n8.5 \n9.8 \nSources - China (Traded Coal) \n1.9 \n2.8 \n1.8 \nSources - Others \n0.0 \n0.7 \n0.2 \nTotal Coal Sales Volume \n29.9 \n31.0 \n32.0 \nNatural Gas Sales Volume \n(Billion Cubic Feet Equivalent) \nNatural gas sales volume - Marcellus \n51.4 \n50.7 \n56.1 \nNatural gas sales volume - Barnett \n262.3 \n229.3 \n190.1 \nTotal Natural Gas Sales Volume \n313.7 \n280.0 \n246.2 \nRevenue \n (Million USD) \nRevenue from Indonesia (ITMG) \n2,108 \n3,325 \n1,939 \nOther Sources \n278 \n325 \n151 \nTotal Revenue from Indonesia \n2,386 \n3,650 \n2,090 \nRevenue from Australia \n805 \n1,253 \n728 \nRevenue from China (Traded Coal) and Other Sources \n118 \n287 \n91 \nRevenue from Coal Business \n3,310 \n5,190 \n2,909 \nRevenue from Gas Business* \n735 \n1,658 \n890 \nRevenue from Power Business \n932 \n746 \n244 \nRevenue from Energy Technology Business \n92 \n6 \n- \nRevenue from Other Businesses \n90 \n93 \n80 \nTotal Revenues \n5,159 \n7,693 \n4,124 \nGross Profit Margin \n(%) \nGross Pro\ufb01t Margin - Indonesia (ITMG) \n53 \n72 \n62 \nGross Pro\ufb01t Margin - Other Sources \n-13 \n4 \n-5 \nGross Pro\ufb01t Margin - Indonesia \n46 \n66 \n57 \nGross Pro\ufb01t Margin - Australia \n1 \n38 \n7 \nGross Pro\ufb01t Margin - China (Traded Coal) \n1 \n16 \n12 \nGross Pro\ufb01t Margin - Coal Business \n34 \n57 \n43 \nGross Pro\ufb01t Margin - Gas Business \n3 \n61 \n54 \nGross Pro\ufb01t Margin - Power Business \n38 \n12 \n6 \nGross Pro\ufb01t Margin - Energy Technology Business \n25 \n12 \n- \nGross Pro\ufb01t Margin - Other Businesses \n-16 \n24 \n-18 \nTotal Gross Pro\ufb01t Margin (%) \n29 \n53 \n42 \n* Included revenue from the new natural gas field located in North Texas in The U.S. invested on 30 June 2022. \n8 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","2023 \n2022 \n2021 \n2023 \n2022 \n2021 \n2023 \n2022 \n2021 \n2023 \n2022 \n2021 \n2023 \n2022 \n2021 \n2023 \n2022 \n2021 \n5,159 \nMillion USD \nRevenue from Coal Business \n(Unit : Million USD) \nRevenue from Gas Business* \n(Unit : Million USD) \nRevenue from Power Business \n(Unit : Million USD) \nRevenue from Energy Technology Business \n(Unit : Million USD) \nRevenue from Other Businesses \n(Unit : Million USD) \nTotal Revenues \n(Unit : Million USD) \n5,190 \n3,310 \n2,909 \n1,658 \n735 \n890 \n746 \n244 \n932 \n93 \n90 \n80 \n6 \n92 \n5,159 \n4,124 \n7,693 \n9 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","Mr. Chanin Vongkusolkit \nChairman of the Board of Directors \n\u201cEntering our 5 decade, we aim to sustain \nth \ncontinuous growth, enhance operational e \n! \nciency, \nmaintain stable and steady pro\ufb01tability. \nWe are moving forward to deliver \nSmarter Energy for Sustainability \nto create a Better Living for All.\u201d \nTHE BOARD OF DIRECTORS\u2019 REVIEW \n10 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Banpu has consistently adhered to Environmental, \nSocial and Governance (ESG) principles. In 2023, our \nEnvironmental, Social and Governance Committee \n(ESG Committee) conducted a review of two key \nESG-related policies and practices: the Environmental \nPolicy and Biodiversity Policy. This review aimed \nto ensure their alignment with our business growth \nand evolving business landscape. Our unwavering \ncommitment to corporate governance and operating \nin accordance with ESG principles led to significant \nrecognition. In 2023, Banpu was honored to be \nselected as a member of the Dow Jones Sustainability \nIndices (DJSI) for the 10th consecutive year. \nMoreover, we received the \u201cAAA\u201d rating in the SET \nESG Ratings and Sustainability Award of Honor for \nthe 6th consecutive year from the Stock Exchange \nof Thailand. \nIn 2023, the Board considered the succession plans, \noutlining the succession plan for critical positions \nincluding Chief Executive Officer, Head of Mining \nBusiness, Head of Power Business, and Head of \nEnergy Technology Business. Emphasis was placed \non transitioning to a new generation of visionary \nexecutives, ready to drive business growth amidst \nthe current global challenges. \nThe Board of Directors would like to extend our \nsincere appreciation to our esteemed shareholders, \ninvestors, supporters, business partners, and all \nstakeholders in Thailand and abroad for your \nunwavering support. As we enter our 5 decade of \nth \noperation, we pledge to keep advancing our business \nand upholding our position as a leading international \nversatile energy provider. Embracing ESG principles in \nevery decision, we will continue to drive sustainability \nfor our organization and the world. \nIn 2023, the world faced volatility and uncertainty, driven by geopolitical conflicts, rising interest rates, cyber \nrisks, and climate change. In response, the Board of Directors placed great importance on business continuity \nmanagement and business adaptability to address and capitalize on these challenges. This focus is on enhancing \noperational efficiency, prudent cost management, and agile adaptation to align with changing circumstances. \nThis is coupled with embracing ESG principles in our business operations for sustainable growth and long-term \nvalue creation for all stakeholders. \nRegarding the corporate strategic plan, in the past \nyear, the Board of Directors oversaw the execution \nof the 5-year strategic plan (2021-2025) and supported \nthe management in enhancing the Greener & Smarter \nstrategy. This included the acquisition of the Temple II \ngas-fired power plant in the United States, investment \nexpansions in the battery business covering the entire \nindustry value chain which included the notable \nventures such as the investment in SVOLT Thailand \nto establish a battery production plant, the Final \nInvestment Decision (FID) and commencement of \nthe Carbon Capture, Utilization, and Storage (CCUS) \nproject which Banpu is Thailand\u2019s first pioneering \nCCUS project in the U.S. \nIn terms of risk management, in 2023, amid global \nconflicts, energy businesses encountered additional \nchallenges such as energy supply and demand \nimbalances, regulatory shifts, and disruptive \ntechnological development and advancement trends. \nTo address these risks, Banpu has continuously \nreviewed our business direction and strategy \nto adapt to changing circumstances. Prioritizing \nsustainability, we have formulated strategies based \non ESG principles and ensure flexibility and agility \nin our business planning. Additionally, maintaining \nfinancial liquidity is integral to our risk management \napproach. We emphasize investments in projects \nwith immediate cash flow generation and implement \neffective cash flow management to sustain stability \nfor sustainable growth. \n11 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","Mrs. Somruedee \n Chaimongkol \nChief Executive Officer \nCHIEF EXECUTIVE OFFICER\u2019S REVIEW \n\u201cDriving Forward Sustainable \nGrowth and Better Living for All\u201d \n12 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","2023 was Banpu PLC\u2019s 40 Anniversary year, marking \nth \nfour decades of innovation in the energy sector. \nToday we stand tall as one of the leading international \nversatile energy providers, developing innovative \nsolutions for the modern era. \nThe secret to Banpu\u2019s great longevity is our \u2018Antifragile\u2019 \napproach, continuously harnessing disruption \nand leveraging uncertainty to guide our strategic \nevolution. Turning adversity into momentum has become \none of our greatest and most valuable strengths. \nEvery year brings a unique set of challenges and \nopportunities. Last year was no exception, with \nglobal market volatility and geo-political tensions \nleading to difficult growth conditions. We saw \ncoal and gas prices decline from their previous \nhighs and elevated inflation rates, notably in \nthe United States. Despite such challenging \nconditions, Banpu remained strong, navigating with \nrenewed agility and foresight, always ready to adapt \nto the ever-changing market landscape. \nIn 2023, we harnessed robust cash flows to accelerate \nour Greener & Smarter development strategy. In July \nwe closed the important acquisition of Temple II, \na CCGT power plant in Texas, which has strengthened \nBanpu\u2019s integrated power portfolio and leverages \nsynergies with our existing asset, Temple I. Our Energy \nTechnology business made significant progress with \na new focus on the battery value chain: the strategic \ninvestment into Iwate Tono, a large-scale battery farm \nproject, and in SVOLT Energy Technology (Thailand) \na lithium-ion battery manufacturing and distribution \nbusiness. Another exciting development in 2023 was \nthe launch of our first ever Carbon Capture and \nStorage project to reduce carbon emissions generated \nby BKV\u2019s gas operation in the Barnett. In November, \nBarnett Zero\u2019s first CO injection commenced, \n2 \nestablishing it as one of the first commercial carbon \nsequestration wells in the USA. \nI am proud to say that we remain on track to achieve \nour 2025 targets. Our Thermal power capacity is \nexpected to reach 4.5 GW; our total Renewable \npower capacity is set to reach 1.6 GW and our \nEnergy Technology business is expected to reach \n6 GWh of Battery Production capacity, 60 smart city \nand energy management projects, and 2,400 GWh \nof electricity sales. \n1) Financial Performance \nThe convergence of rising global long-term borrowing \ncosts, persistent fragility in the global macroeconomy, \nand escalating geopolitical tensions has intensified \nthe pressure on global markets, including the \ncommodities sector. \nDespite this, in 2023, Banpu generated a consolidated \ngroup EBITDA of USD 1,562 million, down by 60% \nfrom the previous year. The group\u2019s consolidated \nEBITDA was comprised of USD 914 million from \nthe group\u2019s coal business, USD 162 million from our \ngas business, USD 482 million from our power business, \nand USD 4 million from our energy technology business. \nBanpu\u2019s consolidated net profit after tax was USD \n160 million after a foreign exchange translation gain \nof USD 2 million and a derivative loss of USD 164 \nmillion. The TRIS rating agency affirmed Banpu\u2019s \ncredit status at \u201cA+\u201d with a stable outlook on its \nsenior unsecured debentures, reflecting confidence \nin our business efficiency and robust cash flows. \nEnergy Resources \nGas Sales and Market Analysis \nIn 2023, the gas business in the US reported a sales \nvolume of 313.73 billion cubic feet, a 12% increase \nfrom the previous year. However, the average local \nprice was USD 2.41 per Mcf, decreasing by 58% \ncompared to the previous year. The decline in gas \nprices resulted from lower-than-expected domestic \nutilization due to a shut down for maintenance of \n13 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","the Freeport LNG terminal located in Texas, leading \nto high natural gas reserves. Banpu has recalibrated \nits operational plan with a focus on production plan \nflexibility and tightly managing costs to ensure strong \ncash flow from our operations. \nCoal Sales and Market Analysis \nBanpu seeks to ensure the stable delivery of \nhigh-quality coal, remaining a responsible and \nreliable supplier to its customers and stakeholders. \nBanpu Group coal sales in 2023 totalled 34.5 \nmillion tonnes (Mt) versus 35.2 Mt the previous year. \nTotal coal sales from Banpu\u2019s Indonesian mines were \n21.0 Mt, with 7.0 Mt from our Australian mines and \n6.5 Mt from our China operations. \nSales to our ASEAN customers this year amounted \nto 8.5 Mt, and sales to customers in China decreased \nby 7% in 2023 to 13.5 Mt. In South Asia, sales \nin India reached 0.8 Mt while sales in Bangladesh \nwere 1 Mt. Sales to customers in Japan decreased \nto 3.6 Mt while sales to domestic customers \nin Australia totalled 4.9 Mt. The benchmark NEX Index \nrepresenting thermal benchmark prices at Newcastle \nin Australia for high-grade export coal, decreased \nto an average of USD 176 per tonne compared \nto USD 367 per tonne in 2022 due to weakened \nglobal demand. \nIn order to accelerate our transition towards Greener, \nSmarter energy generation, we are no longer \ninvesting into new coal mining assets and will be \nintegrating clean energy, such as solar and battery \npowered solutions to improve energy efficiency \nacross our mining operations. \nIndonesian Mining Business \nPT Indo Tambangraya Megah Tbk (ITM) is listed on \nthe Indonesian stock exchange and is approximately \n65.14% owned by Banpu. ITM recorded an EBITDA \nof USD 687 million in 2023, decreasing by 63% from \nUSD 1,846 Million. \nITM\u2019s coal output in 2023 was 16.8 Mt: 6.5 Mt \nfrom Indominco, 2.7 Mt from Trubaindo, 7.1 Mt \nfrom Bharinto, and 0.5 Mt from Jorong. ITM\u2019s \naverage unit cost decreased to USD 61.97 per \ntonne from USD 94 per tonne due to a decrease \nin royalty costs, declining trend in fuel prices, \nand the implementation of cost-efficiency programs. \nAustralian Mining Business \nCentennial\u2019s EBITDA in 2023 decreased by 87% to \nan equivalent of USD 73 million Centennial\u2019s total \noutput was down by 18% to 6.8 Mt in 2023 compared \nto 8.7 Mt in 2022. Clarence saw a lower production \nto 1 from 1.3 Mt, while Airly decreased to 0.6 Mt \nfrom 1.2 Mt. For the Northern operations, Mandalong \nproduction decreased to 1.8 Mt from 2.8 Mt, \nMyuna and Springvale remain stable at 1 Mt and \n2.3 Mt respectively. \nChina and Mongolia Mining Business \nIn 2023, our mining operations in China accounted \nfor USD 154 million in EBITDA, a decrease from 2022. \nGaohe\u2019s output increased to 10.1 Mt. At Hebi Zhong Tai, \nin Henan province, output increased from 0.8 Mt \nto 1.0 Mt. In Mongolia, we continued to develop pilot \nprojects and feasibility studies. \n14 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Energy Generation \nBanpu Power PLC (BPP), 78% owned by Banpu PLC, \nregistered an EBITDA of USD 482 million, compared \nto USD 231 million in 2022. Currently, BPP operates \nthermal power and renewable power assets in \nthe U.S, North Asia, and the Greater Mekong region. \nThe total operating capacity of BPP\u2019s energy \ngeneration assets on an equity basis amounted to \napproximately 3,642 equity megawatts (MWe), a 514 \nMWe increase from 2022. \nThermal Power Business \u2013 Greater Mekong Region \nBPP has two major thermal power operations in \nthe Greater Mekong region: a 50% stake in BLCP, \na coal-fired power plant in Thailand with a 1,434 \nMW capacity, and a 40% stake in HPC, a coal-fired \nmine-mouth power plant in Laos with an 1,878 MW \ncapacity. This year, BLCP\u2019s EBITDA reached USD \n104 million, with an Equivalent Availability Factor (EAF) \nof 88%. HPC\u2019s EBITDA reached USD 344 million, \nwith an EAF of 85%. \nThermal Power Business \u2013 China \nBPP holds three legacy combined heat-and-power \n(CHP) operations in China: Luannan, Zouping, \nand Zhengding \u2013 with a total capacity of 548 MWe. \nThis year the combined EBITDA of the CHP \noperations increased to USD 22 million. \nBPP has a 30% stake in the Shanxi Lu Guang power \nplant, a coal-fired power plant that uses advanced \nclean coal ultra-supercritical technology with a \ntotal capacity of 1,320 MW, and an equity capacity \nof 396 MW. \nThermal Power Business \u2013 Japan \nBPP has a 33.5% stake in Nakoso IGCC, the world\u2019s \nlargest Integrated Gasification Combined Cycle plant. \nThe plant was under temporary closure this year \nto ensure long-term operational reliability and \nsustainability, contributing to a share of loss of USD \n3 million. All maintenance works are on schedule \nwith testing and commissioning expected to be \ncompleted by March 2024. \nThermal Power Business \u2013 U.S. \nIn July, Banpu acquired Temple II CCGT power \nplant in Texas, further expanding our gas-fired \npower capacity. Temple II was acquired for USD \n460 million, with an installed capacity of 755 MW, \nand has contributed immediate cash flow thanks \nto its consistent and stable performance. \nThe acquisition of Temple II CCGT will optimize \nsynergies across Banpu\u2019s US and especially Texas \nbased assets where we already have our upstream \ngas asset Barnett shale, with a net production of \n728 MMcfed; our midstream pipeline of 778 miles; \nand our downstream gas asset, Temple I with a total \ncapacity of 768 MW. \nIn 2023, Temple I and II CCGT reached net generation \nof 5,415 GWh and reported an EAF of 83%. \nThe Temple II acquisition, supported by a higher \nspark spread, resulted in successful operational \nresults. \nIn 2023, Temple I and II CCGT recorded USD 637 \nmillion in revenue, a 27% increase compared to USD \n502 million in 2022. \n15 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","Renewable Energy Business \nBanpu\u2019s utility-scale renewable business grew to 646 \nMW of operating capacity in 2023: 177 MW in China, \n146 MW in Japan, 167 MW in Australia, 153 MW in \nVietnam, and 2.5 MW in the USA. \nIn China, Banpu\u2019s solar business recorded an EBITDA \nof USD 21 million in 2023. The average capacity \nfactor was 15%. Power sold was 230 GWh, a 1% \nincrease from 2022. \nIn Japan, Banpu\u2019s solar business generated a cash \ndistribution of USD 13 million, up by 47%. The power \nsold was 222 GWh, a 5% increase from 2022. \nThe average capacity factor increased by 1% at 13%. \nIn Australia, Beryl and Manildra solar farms sold 223 \nGWh, 15% more than 2022, with an average capacity \nfactor of 21%. \nIn Vietnam, Banpu\u2019s solar and wind energy business \nhas generated USD 11 million in EBITDA in 2023, \na 9% increase. The average capacity factor for wind \nat 30% and for solar at 17% while the power sold was \nat 149 GWh, a 41% increase from 106 GWh in 2022. \nEnergy Technology \nSolar Rooftop and Floating Solar Business \nLast year Banpu\u2019s solar rooftop and floating solar \nbusiness reached 225 MW of committed capacity. \nBattery Business \nUnder Banpu NEXT, Banpu has partnered with \nDurapower to develop lithium-ion (Li-ion) battery \nassembly plants for electrical buses in Thailand, \nwhich will become operational in 2024 with 1 GWh. \nMoreover, with a view to scaling-up our battery \nbusiness and enhancing our Energy Storage Solutions \nvalue chain, Banpu NEXT has made some key \nacquisitions. At the beginning of the year Banpu NEXT \nacquired more shares in Durapower, increasing its \nstake in the company from 47.68% to 65.1%. Banpu \nNEXT currently has a 1.0 GWh Li-ion capacity with \nplans to expand to 6.0 GWh by 2025. Furthermore, \nBanpu NEXT invested THB 750 million to invest in \na 40% shareholding in SVOLT Energy Technology \n(Thailand), manufacturing and distributing lithium-ion \nbatteries for electric vehicles and THB 271.3 million \nin Green Li-on Pte. Ltd., a Singapore-based provider \nof lithium-ion battery recycling technology. \nE-Mobility Business \nBanpu NEXT is making progress with its Mobility- \nas-a-service (Maas) for e-mobility which encompasses \nride sharing service - MuvMi , EV charger management \n- Evolt, and after-sales service by Beyond Green. \nTo expand our e-mobility business, we increased our \nstake in Evolt from 20% to 23.8%; and our stake in \nBeyond Green from 30% to 39.2%. \nMuvMi is now servicing in 12 locations across Bangkok, \nwith over 9 million passengers so far. There are 600 \ne-tuktuks in operation with 154 chargers deployed \nacross the city. Furthermore, Evolt is making great \nprogress with its charging network expansion, notably \nwinning the bid for the Tesla Supercharger installation \nof 14 units at Central Pattaya, and the Shell DC \ncharger station installation project. Furthermore, \nin the fourth quarter of 2023, we increased our stake \nin Oyika, the Singapore-based start-up offering battery \nswapping solutions, from 14.2% to 15.9%. \n16 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Smart Cities and Energy Management Business \nBanpu NEXT is currently engaged in 27 smart city \nand energy management projects. Banpu NEXT \nEcoServe, a subsidiary of Banpu NEXT, provides \nenergy management solutions such as district cooling \nsystem and smart infrastructure solutions to enhance \nbusiness efficiency and optimize building and \ncity energy management. \nBNSP Smart Tech, a joint venture between Banpu \nNEXT and SP Group has won the tender to design, \nbuild, own and operate an innovative district cooling \nsystem in Zone C of the Government Complex \nCommemorating His Majesty The King\u2019s 80 Birthday \nth \nAnniversary, 5 December 2007. \nth \nEnergy Trading \nBanpu reached a 760 GWh energy trading capacity, \ncurrently trading in Japan with an outlook to expand \nto liberalized markets where there is a Banpu group \npresence. \nBanpu has engaged with over 680 clients, from \npublic and private sectors, in eight utility grid areas, \nthrough the implementation of advanced marketing \nand sales strategies, integrating market-driven pricing \nstructures, and securing supply agreements through \na competitive tendering process. \nCorporate Venture Capital \nBanpu Corporate Venture Capital aims to decarbonize \nand streamline Banpu\u2019s portfolio by investing in \ntargeted early, growth and late-stage companies \nand funds. Banpu CVC is prioritizing investments \nin energy software optimized by Artificial Intelligence \nand other carbon related technologies, and exploring \nopportunities in strategic minerals, green data \ncenters, hydrogen value chain and other S-Curve \nsectors. Banpu CVC\u2019s current portfolio includes 8 \nventure capital and private equity fund investments, \nconnecting us to over 1,100 companies. \nMost recently, we have made direct investments \ninto AirCarbon Exchange (ACX) and Fiutur. ACX \nis a blockchain-enabled exchange platform \nfor carbon credit trading. It tokenizes carbon credits \nfor more streamlined trade and investment and was \nrecently chosen by the Indonesia Stock Exchange \nto power Indonesia\u2019s Carbon Exchange platform. \nFiutur is a pioneer in ESG commodities market \nsolutions that was spun off from Xpansiv, the largest \nglobal marketplace for carbon credits, renewable \nenergy credits, and digital fuels. Fiutur\u2019s technology \nfocuses on standardizing tracking system for ESG \ncommodities to provide data visibility to all market \nparticipants and to allow them to track their assets \nthroughout the entire lifecycle, from primary object \ndata to credit retirement. \nAdditionally, Banpu has reaffirmed its \u201cA\u201d rating from \nthe ESG Ratings by MSCI. For our credit rating, \nwe retained our \u201cA+\u201d score from TRIS Rating with \na stable outlook on the company and senior \nunsecured debentures, reflecting the company\u2019s \nstable business growth. \n2) Corporate Social Responsibility \nHighlights \nIn June, Banpu held its 12 annual \u201cBanpu \nth \nChampions for Change\u201d project, in collaboration with \nChangeFusion. The incubation program helps social \nenterprises build greater resilience and sustainability \nto benefit local communities and help younger \ngenerations fulfil their potential. \nIn October we collaborated with the Faculty of \nEnvironment and Resource Studies at Mahidol \nUniversity to raise awareness about environmental \nissues with the \u201cPower Green Camp 18\u201d. This \nyear\u2019s theme was \u201cWaste Warriors, Green Cloud \u2013 \nGreen Tech \u2013 Green Influencer\u201d. Through science \nclasses, field trips and media training, the students \ngained a deeper understanding of systematic waste \nmanagement and product life cycle, explored \nsolutions, and learnt how to advocate for more \nsustainable practices. \n17 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","Furthermore, in December Banpu distributed 2,000 \nsweaters valued at THB 500,000 to residents of \nTha Song Yang District in Tak Province, as well as \nFang and Mae Chaem Districts in Chiang Mai Province. \nThese regions, known for their harsh winter weather \nand remote locations, often face challenges in \naccessing donations. \n3) Environmental, Social and \nGovernance Performance \nOur transition is driven by three critical pillars. \nWe are supporting climate change mitigation, through \ninvesting in low-carbon clean energy sources, energy \nefficiency and e-mobility solutions. We are securing \nenergy access and affordability, by delivering a \ncontinued supply of reliable thermal energy to support \nthe rising share of intermittent renewable energy. \nWe are protecting social equity, by ensuring that the \nenergy transition does not compromise on the well- \nbeing of our stakeholders including our communities, \ncustomers and workers. \nSince the establishment of our ESG Committee \nin 2021, Banpu has been dedicated to optimizing \nsustainable development practices and supporting \nthe Board of Directors\u2019 ongoing commitment to ESG. \nThis strategic move underscores our commitment to \ndelivering affordable, reliable, and eco-friendly energy \nin alignment with the United Nations\u2019 Sustainable \nDevelopment Goals (SDGs). \nAs part of a wider effort to improve the environmental \nand social impact of our mining operations, Indominco \nis developing a series of conservation programs: \nestablishing the Indominco Arboretum to minimize \ndamage to biodiversity and launching the Good \nMining Practice Tour for students and the public \nto learn about post-mining reclamation efforts. \nFurthermore, 2023 saw the launch of Banpu\u2019s \nfirst Carbon Capture and Sequestration project at \nBKV\u2019s natural gas operations in Texas, with a yearly \nestimated average injection rate of up to 210,000 \ntons of CO e. \n2 \nWe have taken proactive steps to enhance transparency \nand accountability. We released our inaugural TCFD \nreport in May 2023, demonstrating our commitment \nto climate-related financial disclosure. \nAs a result of these efforts Banpu has been selected \nas a member of the Dow Jones Sustainability Indices \n(DJSI) for the 10th consecutive year. Since 2018, \nBanpu has also continued to receive the Sustainability \nAwards of Honor under the Sustainability Excellence, \nwith recent recognition at the SET Awards 2023. \nLastly, Banpu was awarded as the \u2018Best Public \nCompany of the Year 2023 in the SET\u2019 and the \u2018Best \nCompany of the Year 2023 in the Resources Industry\u2019 \ndemonstrating the company\u2019s steadfast commitment \nto ESG principles and delivering \u201cSmarter Energy \nfor Sustainability.\u201d \n18 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","4) Strategic Review and Outlook \nIn 2015, we launched our Greener, Smarter growth \nstrategy to harness disruptive mega-trends for the long- \nterm benefit of our shareholders and stakeholders. \nSince then, we have been steadily diversifying our \nportfolio, shifting to a more sustainable, future-proof \nbusiness model so we can continue to honor our \ncommitment to delivering affordable, reliable and \nenvironmentally-friendly energy across the Pacific Rim. \nTo maintain progress, we have set ourselves some \ncritical sustainable development goals, including \nthe reduction of greenhouse gas emissions across \nall our core businesses. As part of our wider \ndecarbonization efforts, we aim to significantly \nincrease EBITDA contribution from our Greener, \nSmarter businesses over the next few years. \nFor our Gas business, the Company aims to reach \nScope 1 and Scope 2 Net Zero emissions targets by 2025 \nthrough Carbon Capture and Storage (CCS). For our \nMining business, we will no longer be investing in \nthe expansion of our coal operations, and any cashflow \ngenerated by our conventional energy businesses \nwill be reinvested into our lower carbon ventures, \nincluding our renewable assets. \nBanpu NEXT, our energy technology subsidiary, \nis harnessing the \u20183D\u2019 global megatrends of \nDigitalization, Decentralization and Decarbonization \nto develop cutting-edge solutions enabling the \nsector\u2019s sustainable transition. \nOur long-term growth vision goes beyond energy, \ntowards a fully integrated smart solutions platform. \nBanpu\u2019s Corporate Venture Capital (CVC) is driving \nthis vision forward, harnessing strong cashflow from \nour conventional Energy Resources and Generation \nbusinesses to boost growth in our smarter businesses \nand expand our asset-light, high-growth portfolio. \nIn 2024, we can expect inflation levels to ease \ngradually, though ongoing geo-political tensions \nwill likely continue to cause global market disruptions. \nBanpu\u2019s increasingly diversified portfolio will allow \nus to capture opportunities that emerge from this \nconstantly shifting global landscape. \nAs we enter our fifth decade, our commitment \nto delivering sustainable energy solutions far and wide, \nis stronger than ever before. I have full faith in Banpu\u2019s \nnext generation of leadership, and I look forward to \nwatching Banpu\u2019s future grow ever brighter. \nIt has been an honor and a privilege to serve Banpu\u2019s \ngreat mission. I would like to extend my heartfelt \ngratitude to Banpu\u2019s Board of Directors, stakeholders \nand shareholders for their continued trust and \nsupport. \n19 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","BUSINESS AND \nOPERATIONAL RESULTS \nBUSINESS AND \nOPERATIONAL RESULTS \nSection \n1"," ","POLICY AND BUSINESS OVERVIEW \nBanpu Public Company Limited \n was established on 16 May 1983 as \u201cBan Pu Coal Company Limited\u201d with \na THB 25 million registered capital. Banpu was founded by members of the Vongkusolkit and Auapinyakul families \nin order to subcontract a coal mining operation at Banpu Mine (BP-1 Mine) located in Li District, Lamphun \nProvince from the Department of Alternative Energy Development and Efficiency. \nOn 4 May 1989, Banpu was listed on the Stock Exchange of Thailand (SET). The Company later changed \nits name on 29 July 1993 to \n\u201cBanpu Public Company Limited\u201d. \nEmbarking on the fifth decade of business operations, Banpu has become an International Versatile Energy \nProvider offering the best-in-class energy solutions with our extensive expertise in integrated energy solutions \nto many countries across Asia-Pacific, namely Thailand, Indonesia, China, Australia, Lao PDR, Mongolia, \nJapan, the United States of America, and Vietnam. We are committed to driving the growth and robustness of \nthe Banpu ecosystem through \nthe Greener & Smarter strategy \nby reinforcing eco-friendly businesses and leveraging \nsmart technologies and innovations. Steered by the strategy, Banpu is able to fully deliver \n\u201cSmarter Energy \nfor Sustainability\u201d \n to all stakeholders through 3 core business groups of integrated energy solutions as follows: \n\u2022 \n Energy Resources: \n Mining and gas including related operations such as marketing, \ntrading, logistics, fuel procurement, and transmission \n\u2022 \nEnergy Generation: \n Thermal and renewable power plants \n\u2022 \nEnergy Technology: \n Solar rooftop and solar floating, Energy Storage Systems (ESS), \nenergy trading, e-Mobility, and smart city & energy management \nBanpu strives to create energy sustainability for the world through the delivery of affordable, reliable, and \neco-friendly energy. We also embrace the \nESG principles \n in our business conduct with adherence to the \nenvironmental, social, and governance. Moreover, our employees are connected with \n\u201cBanpu Heart\u201d corporate \nculture, \n which comprises 3 core values: Passionate, Innovative, and Committed. Adherence to the corporate \nculture has significantly empowered Banpu to cope with any changes in the Never Normal era, thereby building \nstakeholder confidence in line with our brand promise \n\u201cOur Way in Energy\u201d. \n22 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Energy Resources \nMining and gas including related \noperations such as marketing, \ntrading, logistics, fuel procurement, \nand transmission \nEnergy Generation \nThermal and renewable power plants \nEnergy Technology \nSolar rooftop and solar floating, Energy Storage Systems (ESS), \nenergy trading, e-Mobility, and smart city & energy management \n23 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","Mongolia \nAustralia \nThe United States \nof America \nGas-\ufb01red Power Plants \nShale Gas Sites \nCoal Mines \nCoal Projects \nPorts \nSolar Power Plants \nCoal \nProjects \n6 \n2 \n2 \n2 \nSolar Power Project 1 1 \n3 3 \n2 \n2 \nThermal \nPower Plant \n1 \n1 \nThermal \nPower Plant \nThailand \nLao PDR \n1 \n1 \nVietnam \nSolar Power Plant \n1 1 \nWind Power Plant \nWind Power Project \nBANPU GROUP\u2019S \nMAP OF OPERATIONS \nBanpu continues to accelerate exponential growth, \npursuing to deliver \n\u201cSmarter Energy for Sustainability\u201d \nin order to power a better living for all. \n24 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Japan \nChina \nIndonesia \nThermal Power Plants \nCoal Mines \nSolar Power Plants \nCoal Projects \nPorts \nCoal Mines \nIGCC Power Plant \nSolar Power Plants \nNote: \nThe map excludes operations of solar rooftop and solar floating, Energy Storage Systems (ESS), Energy Trading, e-Mobility, \nand Smart City & Energy Management. \n5 \n1 \n19 \n5 \n4 2 \n7 \n2 2 \n25 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","Build sustainable value for all our stakeholders as a trusted partner, \nwith emphasis on care for the earth and society \nPromote innovation, synergy, sustainability, \nand integration across the energy supply chain, \nbetween thermal and new energy technologies \nFoster our corporate values, operational excellence, \nand uphold Banpu\u2019s reputation for integrity, \nprofessionalism and best practices \nThe Asian energy company at the heart of innovation, \ntechnology and sustainability \nMISSION \nMISSION \nVISION \nVISION \nVISION & MISSION \n26 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","SUMMARY OF MAJOR CHANGES \nAND DEVELOPMENT IN 2023 \nAND CURRENT EVENTS \n23 February 2023 \nBPIN Investment Co., Ltd. (BPINI), a wholly owned subsidiary of Banpu NEXT Co., Ltd. (Banpu NEXT ), has \n1 \nincreased its shareholding in Durapower Holdings Pte. Ltd. (Durapower). Originally classified as a joint venture, \nBPINI held a 47.68% equity interest. Following the capital infusion, its ownership interest has risen to 65.10%. \nLater, Durapower became a subsidiary of Banpu with the transaction value of USD 70 million (approximately \nTHB 2,373.70 million) as part of BANPU\u2019s strategy to scale up its Energy Storage System (ESS) business. \n22 February 2023 \nThe Board of Directors Meeting approved the Company\u2019s dividend payment at a rate of THB 1.20 per share for \nthe operating results from 1 January to 31 December 2022. Previously, an interim dividend from the operating \nresults from 1 January \u2013 30 June 2022 had been paid out to shareholders at a dividend rate of THB 0.45 per \nshare on 30 September 2022. The remaining dividend for the operating results from 1 July \u2013 31 December \n2022 was proposed to be paid to shareholders at THB 0.75 per share. The dividend payment was appropriated \nfrom the corporate income tax-exempt profit, on which shareholders are not entitled to tax credits. The 2 \nnd \nhalf of 2022 dividend was paid on 28 April 2023. \n1 \n THE SUBSIDIARY OF BANPU AND BANPU POWER PUBLIC COMPANY LIMITED BY EQUALLY HOLD 50 PERCENT. \n8 March 2023 \nBanpu issued 4 tranches of unsubordinated and unsecured debentures with a debenture holders\u2019 representative \nin the name-registered certificate with a total value of THB 8,200 million. The 5-year, the 7-year, the 10-year \nand the 15-year debentures were offered to general and institutional investors at the interest rates of 3.26%, \n3.76%, 4.04%, and 4.46% per annum, respectively. The principal is to be repaid at the maturity date. \n27 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","13 March 2023 \nBPINI, invested 4.55% shares in Green Li-on Pte. \nLtd., a Singapore-based lithium-ion battery recycling \ntechnology company with total investment value of USD \n8.0 million (approximately THB 271.28 million \n28 April 2023 \nBanpu Japan K.K. (BJP), a wholly owned subsidiary \nof Banpu NEXT invested in Energy Storage System \n(ESS) business by developing a large-scale battery \nfarm Iwate Tono project in Japan, with the total \ncapacity of 58 MWh, the project will be developed \non approximately 3,000 square meters of land \narea, which expected for Commercial Operation \nDate (COD) in 2025. The project being supported \nby the government\u2019s subsidy program aims to \nprovide partial or full financial support to accelerate \nits cleaner energy transitions supporting Carbon \nNeutrality goals. \n18 April 2023 \nBanpu NEXT invested 14.20% shares in Oyika Pte. \nLtd. (Oyika), a Singapore start-up that offers battery \nswap solutions and Battery-as-a-Service (BaaS) to \nexpand its services and network of battery swapping \nstations in Southeast Asia with total investment value \nof USD 8.75 million (approximately THB 311.41 \nmillion). \n29 June 2023 \nBanpu NEXT increased its shareholding in Evolt \nTechnology Co., Ltd. (EVOLT) that provides smart \nEV charging management solutions. The shareholder \nincreased from 20% to 23.81% with total investment \nvalue of THB 30.0 million. \n28 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","10 July 2023 \nTemple Generation Intermediate Holdings II, LLC , \n2 \na subsidiary of Banpu Group has entered into a Purchase \nand Sale Agreement to acquire 100% interest in CXA \nTemple 2, LLC which owns Temple II Gas-fired power \n17 August 2023 \nBKV announced final investment decision (FID) \nfor its development in Carbon Capture, Utilization \nand Storage (CCUS) project in the U.S. The \n2 projects consist of Barnett Zero Project with an \naverage sequestration rate of up to approximately \n210,000 metric tons of Carbon dioxide (CO2) per \nyear, expected total investment of around USD \n29-34 million and Cotton Cove Project with an \naverage sequestration rate of up to approximately \n80,000 metric tons of CO2 per year, expected total \ninvestment of around USD 14-24 million. \n30 August 2023 \nThe Board of Directors Meeting approved the interim \ndividend payment from operating results during \n1 January \u2013 30 June 2023, at a rate of THB 0.25 \nper share. The dividend payment was appropriated \nfrom the corporate income tax-exempt profit, \non which shareholders are not entitled to tax credits. \nThe interim dividend was paid out on 29 September \n2023. \n2 \n Temple Generation Intermediate Holdings II, LLC is 100% held by BKV-BPP Power, LLC (BKV-BPP), which is a joint venture established \nby BKV Corporation (BKV) 96.1% subsidiary of Banpu and Banpu Power US Corporation (BPPUS), 100% subsidiary of BPP, in which BKV and BPPUS \nequally hold 50% ownership in BKV-BPP. \nplant (Temple II) that is situated adjacent to Temple I \nGas-fired power plant (Temple I) in Texas, USA. The total \ninvestment amount is USD 460 million, or equivalent to \nTHB 16,060 million. The transaction was successfully \ncompleted on 10 July 2023. Temple II is a natural gas- \nfueled, combined cycle facility with a generating capacity \nof 755 MW. The power plant has been in Commercial \nOperation Date (COD) since August 2015. \n29 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","25 September 2023 \nBNSP Smart Tech Co., Ltd. (BNSP), a joint venture between Banpu NEXT and SP Group, had won the tender \nto design, build, own and operate an innovative district cooling system in Zone C of the Government Complex \nCommemorating His Majesty the King\u2019s 80th Birthday Anniversary, 5th December 2007 (Government Complex \nCenter Zone C). When completed in 2024, the district cooling system will operate a total cooling capacity of \nup to 14,000 Refrigeration Tons (RT), providing sustainable cooling covering total gross floor area of 660,000 \nsquare meters to provide reliable and energy-efficient chilled water to the network of buildings within the \ncomplex. In addition, there are plans to install an EV charging station at the facility. \n4 October 2023 \nBanpu reported the registration of the increase in paid-up capital of the company, regarding the issue of warrants \nrepresenting the right to purchase new ordinary shares of Banpu Public Company Limited (BANPU-W5) in which \na total of 1,691,527,171 units of warrant were issued on 1 October 2021 with the last exercise date on 29 \nSeptember 2023. The number of warrants exercised was 1,564,741,337 units, the number of common shares \nallocated for this exercise 1,564,741,337 shares. The Company has accordingly allocated 1,564,741,337 new \ncommon shares (par value of THB 1 per share) and registered as paid-in capital with the Ministry of Commerce, \nresulting in an increase in the Company\u2019s paid-up capital from THB 8,454,161,388 to THB 10,018,902,725. \n30 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","11 October 2023 \nBanpu NEXT has entered into Share Subscription \nAgreement (SSA) for the investment of 40% shares \nof SVOLT Energy Technology (Thailand) Co., Ltd. \n(SVOLT Thailand) with the investment amount of \nTHB 750 million from SVOLT Energy Technology \n(Hongkong) which shall retain a majority 60% \nownership interest. SVOLT Thailand established \non 5 April 2023, in Sriracha Chonburi, Thailand. \nSVOLT Thailand is mainly positioned as a module \npack factory, with business scope including \nresearch, processing, and sales of lithium-ion battery \ntechnology; import and export of goods; import and \nexport agency; technical services, development, \nconsultation, exchange, and transfer; information \nconsulting services (excluding licensing information \nconsulting services). The factory has capacity of \n60,000 set and is expected to deliver within the first \nquarter of 2024, serving key clients including GWM \nand Hozon are being served. The transaction was \nsuccessfully completed on 30 October 2023. \n13 November 2023 \nBanpu updated the progress of Barnett Zero Project, \na Carbon Capture, Utilization and Storage (CCUS) \nproject in the U.S., has safely commenced the \ninitial CO2 injection for permanent underground \nsequestration which makes it one of the first \ncommercial CCUS projects in the U.S. \n27 October 2023 \nBanpu NEXT increased its shareholding in Beyond \nGreen Co., Ltd., an associated company from 30% to \n39.18 % with total investment value of THB 80 million . \n31 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","22 December 2023 \nTRIS Rating affirms the company rating on Banpu PLC (BANPU) and the ratings on BANPU\u2019s senior \nunsecured debentures at \u201cA+\u201d with a \u201cstable\u201d outlook. The ratings reflect the company\u2019s leading position in \nthe Asia-Pacific coal industry, predictable cash flows from the power business, and its transition investments \ntoward a \u201cgreener\u201d energy portfolio, energy technology businesses including battery value chain and \ndecarbonization businesses. The ratings factor in the volatilities of coal and natural gas prices and declining \ndemand for coal over the long-term. \n1 January 2024 \nBanpu announced the appointment of Mr. Smittipon Srethapramote as the Chief Executive Officer of Banpu NEXT. \n21 February 2024 \n\u2022 The Board of Directors Meeting approved the Company\u2019s dividend payment at a rate of THB 0.45 \nper share for the operating results from 1 January to 31 December 2023. Previously, an interim dividend \nhad been paid out to shareholders at a dividend rate of THB 0.25 per share on 29 September 2023 \nfor the operating results from 1 January to 30 June 2023. The remaining dividend for the operating results \nfrom 1 July to 31 December 2023 was proposed to be paid to shareholders at THB 0.20 per share. \nThe dividend payment was appropriated from the corporate income tax-exempt profit, on which shareholders \nare not entitled to tax credits. The dividend is scheduled to be paid on 30 April 2024. \n\u2022 The Board of Directors Meeting approved to appoint Mr. Sinon Vongkusolkit to be Chief Executive Officer \nreplacing Mrs. Somruedee Chaimongkol. This appointment will be effective from April 2, 2024, onwards \n(The day after Annual General Meeting of 2024). \n32 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Name and Location of Banpu Public Company Limited \nName (Thai) \n\u0e1a\u0e23 \u0e34\u0e29 \u0e31\u0e17 \u0e1a\u0e49\u0e32\u0e19\u0e1b \u0e39 \u0e08 \u0e33\u0e32\u0e01 \u0e31\u0e14 (\u0e21\u0e2b\u0e32\u0e0a\u0e19) \nName (English) \nBanpu Public Company Limited \nMajor Business \nEnergy \nRegistration Number \nBorMorJor. 152 \nAuthorized Capital \nTHB 10,149,163,028 \nPaid-up Capital \nTHB 10,018,902,725* \nNo. of Shares \n10,018,902,725 shares \nPar Value \nTHB 1 \nHeadquarters \n27 Floor, Thanapoom Tower, 1550, New Petchburi \nth \nRoad, Makkasan, Ratchathewi, Bangkok 10400, Thailand \nTelephone \n+66 2 694 6600 \nWebsite \nwww.banpu.com \nCompany Secretary \nTelephone: +66 2 694 6859 \ne-mail: [email protected] \nInvestor Relations \nTelephone: +66 2 694 6684 \ne-mail: [email protected] \nCorporate Communications \nTelephone: +66 2 694 6680 \ne-mail: [email protected] \nNotes: \n* The Company has accordingly allocated 1,564,741,337 new common shares (par value of THB 1 per share) from exercise BANPU-W5 and successfully \nregistered as paid-in capital with the Ministry of Commerce on 4 October 2023, resulting in an increase in the Company\u2019s paid-in capital from THB \n8,454,161,388 to THB 10,018,902,725. \nBANPU INFORMATION \n33 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","REVENUE STRUCTURE \nProducts\/Services \nConduct \nby \n% of \nShareholding \n2023 \n2022 \n2021 \nRevenue \n(USD \nMillion) \n% \nRevenue \n(USD \nMillion) \n% \nRevenue \n(USD \nMillion) \n% \nSales Revenues: \n1. Imported Coal \nBanpu \n- \n60.72 \n97.59 \n57.47 \n97.49 \n39.85 \n99.48 \n2. Other Revenues \nBanpu \n- \n1.50 \n2.41 \n1.48 \n2.51 \n0.21 \n0.52 \nTotal Sales Revenues \n62.22 \n100.00 \n58.95 \n100.00 \n40.06 \n100.00 \nProducts\/Services \nConduct \nby \n% of \nShareholding \n2023 \n2022 \n2021 \nRevenue \n(USD \nMillion) \n% \nRevenue \n(USD \nMillion) \n% \nRevenue \n(USD \nMillion) \n% \nSales Revenues - Domestic: \n1. Domestic Coal \n in Thailand \nBanpu \n- \n60.72 \n1.18 \n57.47 \n0.75 \n39.85 \n0.97 \nBMC \n100.00 \n80.17 \n1.55 \n96.70 \n1.25 \n31.73 \n0.77 \nBPI \n100.00 \n- \n- \n- \n- \n3.16 \n0.08 \n2. Domestic Coal \n in Indonesia* \nIndominco \n65.14 \n105.83 \n2.05 \n106.99 \n1.39 \n93.11 \n2.26 \nBharinto \n65.14 \n189.06 \n3.66 \n310.15 \n4.03 \n171.29 \n4.15 \nTrubaindo \n65.14 \n122.75 \n2.38 \n229.66 \n2.98 \n198.05 \n4.80 \nJorong \n65.14 \n9.62 \n0.19 \n16.59 \n0.22 \n22.96 \n0.56 \n3. Domestic Coal \n in Australia \nCEY \n100.00 \n404.65 \n7.84 \n332.19 \n4.32 \n365.59 \n8.87 \n4. Coal Trading \n in China \nBBET \n100.00 \n84.45 \n1.64 \n200.52 \n2.61 \n55.33 \n1.34 \n5. Power in China \nBIC \n78.57 \n186.23 \n3.61 \n200.13 \n2.60 \n190.88 \n4.63 \nBPPRIC \n100.00 \n26.28 \n0.51 \n27.50 \n0.36 \n28.76 \n0.70 \n6. Power in Japan \nBPPTGK \n100.00 \n98.35 \n1.91 \n65.12 \n0.85 \n64.24 \n1.56 \n7. Power in the U.S. \nBKV-BPP \n100.00 \n680.24 \n13.19 \n501.92 \n6.52 \n20.19 \n0.49 \n8. Power in Australia \nBEN \n100.00 \n12.43 \n0.24 \n10.27 \n0.13 \n5.79 \n0.14 \n9. Power in Vietnam \nELMD \n100.00 \n8.39 \n0.16 \n6.55 \n0.09 \n3.65 \n0.09 \n10. Gas \nBNAC \n100.00 \n734.84 \n14.24 \n1,657.73 \n21.55 \n890.73 \n21.60 \n11. Battery \nDPH \n65.10 \n81.23 \n1.57 \n- \n- \n- \n- \n12. Other Revenues \n25.99 \n0.50 \n12.75 \n0.16 \n9.74 \n0.24 \nTotal Sales Revenues - Domestic \n2,911.23 \n56.43 \n3,832.24 \n49.81 \n2,195.05 \n53.23 \nBanpu Public Company Limited \nBanpu Public Company Limited and its Subsidiaries \nFor the previous 3 years ended 31 December 2023 \n34 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Products\/Services \nConduct \nby \n% of \nShareholding \n2023 \n2022 \n2021 \nRevenue \n(USD \nMillion) \n% \nRevenue \n(USD \nMillion) \n% \nRevenue \n(USD \nMillion) \n% \nSales Revenues - Overseas: \n1. Coal - International \n Trade** \nIndominco \n65.14 \n530.02 \n10.27 \n834.96 \n10.85 \n578.73 \n14.03 \nKitadin \n65.14 \n- \n- \n- \n- \n9.59 \n0.23 \nBharinto \n65.14 \n741.84 \n14.38 \n1,153.74 \n15.00 \n590.64 \n14.32 \nTrubaindo \n65.14 \n486.43 \n9.43 \n843.46 \n10.96 \n345.70 \n8.38 \nJorong \n65.14 \n- \n- \n- \n- \n3.81 \n0.09 \nEnergi \n65.14 \n86.41 \n1.68 \n48.4 \n0.63 \n21.65 \n0.53 \nCEY \n100.00 \n400.60 \n11.98 \n921.08 \n11.98 \n362.07 \n8.78 \nBMS \n100.00 \n2.22 \n0.77 \n59.34 \n0.77 \n16.35 \n0.40 \nTotal Sales \nRevenues - Overseas \n2,247.52 \n43.57 \n3,860.98 \n50.19 \n1,928.54 \n46.77 \nTotal Sales Revenues \n5,158.75 \n100.00 \n7,693.22 \n100.00 \n4,123.59 \n100.00 \nParticipating Pro\ufb01t (Loss) from Investment \nin Associated Companies (Equity Method) \n268.29 \n- \n339.36 \n- \n227.14 \n- \nTotal Revenues \n5,427.04 \n- \n8,032.58 \n- \n4,350.73 \n- \nNotes: \n1. Other revenues consist of other services. \n2. The Company did not realize sales revenue from its power business in Thailand as its shareholding is not more than 50% \n3. BBET means Banpu (Beijing) Energy Trading Co., Ltd. \n4. BEN means Banpu Energy Australia Pty Ltd. \n5. ELMD means El Wind Mui Dinh Ltd. \n6. DPH means Durapower Holdings Pte. Ltd. \n7. The preparation of the information presented above is based on the generally accepted accounting principles which eliminate intercompany transactions. \nThe amounts shown should not be reconciled with the statutory accounts of each territory. \n*Sales revenues from domestic coal in Indonesia operated by Indominco, Bharinto, Trubaindo, and Jorong in 2021 are calculated from the Company\u2019s \n67.13% shareholding. \n** Sales revenues from coal - international trade operated by Indominco, Kitadin, Bharinto, Trubaindo, Jorong, and Energi in 2021 are calculated from \nthe Company\u2019s 67.13% shareholding \n35 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","Coal Mines in the Republic of Indonesia \nThe total coal production in 2023 was 16.82 million tonnes from the following mines: \n1. Indominco Mine \nThe mine is operated by PT. Indominco Mandiri, \na wholly-owned subsidiary of PT. Indo Tambangraya \nMegah Tbk (ITM). Located in Bontang, East Kalimantan \nProvince, this open-pit mine has 16.80 million tonnes \nof coal reserves. The production capacity in 2023 \nwas 6.46 million tonnes. The Bontang Coal Terminal \nis utilized for loading its coal to be exported from \nIndonesia. \n2. Trubaindo Mine \nThe mine is operated by PT. Trubaindo Coal Mining, a wholly-owned subsidiary of ITM. Located in West Kutai, \nEast Kalimantan Province, this open-pit mine has 29.72 million tonnes of coal reserves. Its production capacity \nin 2023 was 2.70 million tonnes. \nEnergy Resources Group \nMining Business \nCoal is a solid fuel, varying in color from dark brown to jet-black. The coal mining process \nstarts with an exploration of a potentially economic coal seam, production (excavation and \ntransportation), coal selection, coal pulverization to attain the size and quality as required \nby the customers, and stockpiling to be delivered to the customers. \nPRODUCTS AND SERVICES \n36 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Coal Mines in Australia \nCentennial Coal Co. Pty Ltd. (Centennial), a subsidiary of Banpu, is one of the underground coal producers \nin New South Wales. Centennial supplies coal fuels for coal-fired power plants in New South Wales. Its main \nassets consist of the possessions to operate coal mining business in Northern and Western parts of New South \nWales. The total production capacity in 2023 was 6.77 million tonnes with the share of production from the \nfollowing mines: \n3. Bharinto Mine \nThe mine is operated by PT. Bharinto Ekatama, a wholly- \nowned subsidiary of ITM. The mine is located in North \nBarito, Central Kalimantan Province, and West Kutai, \nEast Kalimantan Province, adjacent to the Trubaindo mine. \nThis open-pit mine has coal reserves of 128.86 million tonnes, \nand its production capacity in 2023 was 7.10 million tonnes. \n4. Jorong Mine \nThe mine is operated by PT. Jorong Barutama Greston, \na wholly-owned subsidiary of ITM. Located in Tanah Laut, \nSouth Kalimantan Province, this open-pit mine has 6.70 \nmillion tonnes of coal reserves. Its production capacity \nin 2023 was 0.56 million tonnes. \n1. Airly Mine \nThe mine is wholly owned and operated by Centennial. \nLocated near Lithgow in the Western Coalfields of New \nSouth Wales, Airly is an underground mine using a \ncontinuous mining method. It has 21.39 million tonnes \nof coal reserves, with a production capacity of 0.65 \nmillion tonnes in 2023. \n5. Graha Panca Karsa Mine (GPK) \nThe mine is operated by PT. Graha Panca Karsa, a 70% owned subsidiary of ITM. Located in East Kalimantan \nProvince, this open-pit mine has 21.52 million tonnes of coal reserves. \n6. NPR Mine Project \nThe mine is operated by PT. Nusa Persada Resources, a wholly-owned subsidiary of ITM. Located in Central \nKalimantan Province, this open-pit mine has 77.40 million tonnes of coal reserves. \n7. TIS Mine Project \nThe mine is operated by PT. Tepian Indah Sukses, a wholly-owned subsidiary of ITM. Located in East Kalimantan \nProvince, this open-pit mine is under the coal reserves evaluation. \n37 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","4. Clarence Mine \nThe mine is a wholly owned and operated by Centennial. \nLocated near Lithgow, in the Western Coalfields of New \nSouth Wales, it is an underground mine using a highly \nefficient continuous mining method. Clarence has 28.34 \nmillion tonnes of coal reserves, with a production \ncapacity of 0.93 million tonnes in 2023. The mine \nexports its coal mainly through Port Kembla. \n2. Angus Place Mine \nThe mine is wholly owned and operated by Centennial. \nLocated in the Western Coalfields of New South \nWales, Angus Place has 53.00 million tonnes of \ncoal reserves. Since the end of February 2015, \nthe production has been suspended under care and \nmaintenance. Its staff and machinery were relocated \nto the Springvale mine to expand production and \nwill return when Angus Place resumes its operation. \n3. Springvale Mine \nThe mine is wholly owned and operated by Centennial. \nLocated in the Western Coalfields of New South Wales, \nSpringvale deploys the longwall mining technology. \nIt has 13.20 million tonnes of coal reserves, with \na production capacity of 2.27 million tonnes in 2023. \nAngus Place and Springvale mines produce and supply thermal coal for domestic and international markets. They also \nhave conveyor belts to transport coal to the power plants that are their domestic customers. The Lidsdale Sliding Coal \nLoader has been expanded to support the transportation of increasing volumes of coal exports. \n5. Mandalong Mine \nThe mine is wholly owned and operated by Centennial. \nLocated near Morisset, New South Wales, Mandalong \nis an underground longwall mine. Its production \ncapacity is high as it can excavate coal seams with \na thickness of over 5 meters. The mine has 48.65 \nmillion tonnes of coal reserves, with a production \ncapacity of 1.83 million tonnes in 2023. Its coal is \ndistributed in domestic markets and exported through \nthe Port of Newcastle. \n38 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Future Projects \n6. Myuna Mine \nThe mine is wholly owned and operated by \nCentennial. Located near Lake Macquarie, in the \nNewcastle Coalfields, New South Wales, Myuna is an \nunderground mine using a continuous mining method. \nThe mine has 31.38 million tonnes of coal reserves, \nwith a production capacity of 1.10 million tonnes \nin 2023. Coal from Myuna is transported to major \ncustomers nearby using a conveyor system. \n7. Northern Coal Services (NCS) \nIt is a coal-washing plant located in the Newcastle Coalfield, New South Wales. Since it is in the Port of Newcastle, \nNCS processes thermal and semi-soft coking coal excavated from various mines and prepares them for delivery to \ndomestic and international markets. The connection with double-track railways enables effective and fast coal uploading \nto the Port of Newcastle. Northern Coal Services\u2019 capacity is approximately 4 million tonnes per year, and it has specific \nroutes for exporting and transporting coal to domestic customers. \n1. Newstan Extension Mine Project \nThe project explores and studies the feasibility of utilizing existing mining infrastructure to expand the coal \nreserves and production capacity. \n2. Mandalong Southern Extension Mine Project \nThe project is an extension of the Mandalong mine. Currently, it is effectively designed to connect with \nthe Mandalong mine. \n3. Neubecks Mine Project \nThe project is located in the Western Coalfields of New South Wales near its domestic power plants, which are \nits customers. Neubecks produces quality coal to supply domestic markets and export to international markets \nthrough Port Kembla. \nCoal Mines in the People\u2019s Republic of China \nThe total coal production in 2023 was 11.06 million tonnes from the following mines: \n1. Gaohe Mine \nThe mine is operated by BP Overseas Development \nCo., Ltd., a subsidiary of Banpu, which wholly owns \nAsia American Coal Inc. (AACI). AACI was established \nto develop and conduct business as well as invest in \na joint venture in the coal business in China with Shanxi \nLu\u2019an Mining Industry (Group) Co., Ltd., a major coal \nproducer in China. Each holds 45% and 55% shares, \nrespectively, of Shanxi Gaohe Energy Co., Ltd. Gaohe \nmine is an underground longwall mine in Shanxi \nProvince, with 90.79 million tonnes of coal reserves and \na production capacity of 10.03 million tonnes in 2023. \n39 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","2. Hebi Mine \nThe mine is operated by Banpu Minerals Co., Ltd., \na subsidiary of Banpu, which entered a joint venture \nwith Hebi Coal and Electricity Co., Ltd to establish Hebi \nZhong Tai Mining Co., Ltd. (HZTM) with each holding 40% \nand 60% of shares, respectively. HZTM was established \nto produce and distribute coal from the Hebi mine in \nHenan Province. This underground longwall mine has \n12.04 million tonnes of coal reserves, and its production \ncapacity in 2023 was 1.03 million tonnes. \nCoal Mines in Mongolia \nBanpu\u2019s coal reserves in Mongolia are located in the South Gobi and the Middle Gobi regions. The projects \nunder development are as follows: \n1. Tsant Uul Mine Project \nThe project is located in South Gobi Province in the \nsouthern region of Mongolia, bordering to China. \nIt is currently under development and in the feasibility \nstudy phase to increase the value of existing coal to \nrespond to domestic market demand and China. A pilot \nplant has been operated to conduct an experiment on \nthe Coal to Coal Tar production, which indicating that \ntar can be separated from coal at Tsant Uul. Banpu \nis currently assessing the feasibility of increasing \nthe value of tar, charcoal, and gas from the production \nprocess and preparing for further commercial operation. \nThe Company has also conducted an production \nengineering and technology feasibility study, including \nan in-depth study of tar and charcoal\u2019s chemical and \nphysical properties, which could be developed into \nvaluable chemical products to meet market demands. \n2. Unst Khudag Mine \nThe mine is located in Central Gobi Province in \nCentral Mongolia and has thermal coal reserves. \nThe Company was granted approval for the feasibility \nstudy of the mining project from relevant government \nagencies, including the study of raw water reserve \nfor the project. It also conducted a preliminary study on \nproduction engineering and appropriate technology, \nas well as the production costs in converting coal into \nchemical products and energy for power generation. \nThis involves market research for chemical products \nin Mongolia and China. Furthermore, the Company \ninitiated a study on technologies that can add product \nvalue by using coal as a fuel in production processes \nand aiming to export the products to China. \n40 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Marcellus Shale in Pennsilvania \nIn 2016, the Company began investing in U.S. natural \ngas, focusing on assets with low-risk that generate \ngood-returns in the future. The first investment was in \nshale gas located in Northeastern of Marcellus Shale \nin Pennsylvania, which has low production costs and \nthe largest natural gas reserves in the U.S. A total acreage \nposition is approximately 37,000 net acres, including \nChaffee Corners and NEPA Corners-1 to NEPA Corners-5 \ngas reserves. \nBarnette Shale in Texas \nOn 17 December 2019, Banpu North America Corporation \n(BNAC), a subsidiary of Banpu, entered into a Purchase \nand Sales Agreement to acquire a stake in the Barnett \nShale, Texas and become the production operator, with \nan investment value of USD 770 million. Then, on 15 April \n2020, BNAC amended the term of the Purchase and \nSales Agreement to acquire a stake in the Barnett Shale. \nWith efficient work standards and international professionalism, BKV has become one of the top 20 natural gas \nbusiness leaders in the U.S. Its total acreage position is approximately 497,000 net acres, and its net average \ndaily production is 892 MMcfed in 2023. As of 31 December 2023, BKV had 5.15 Tcfe of proved reserves. \nThe acquisition price was changed to USD 570 million, with contingent payments of up to USD 260 million over a period of \n4 years starting from 1 January 2021 to 31 December 2024. The value of contingent payments will be based on the annual \naverage Henry Hub natural gas price beginning at 2.75 USD\/MMBtu or the annual average price of West Texas Intermediate \ncrude oil beginning at 50 USD\/BBL. The acquisition of a stake in the Barnett Shale was completed on 1 October 2020. \nGas Business \nBanpu is committed to seeking new eco-friendly energy sources in alignment with its Greener & Smarter \nstrategy. It has diversi\ufb01ed into a natural gas business through its subsidiary, BKV Corporation (BKV). \nBKV is currently engaged in the investment, development, and production of natural gas and natural \ngas liquid (NGL) primarily from the Marcellus Shale in the Northeastern Pennsylvania (NEPA), the most \nabundant natural gas reserve in the U.S., and the Barnett Shale in the Fort Worth Basin of Texas. \n41 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","Carbon Capture, Utilization, and Sequestration (CCUS) Project \nAiming to achieve a net-zero target for its natural gas business by 2030, BKV has established dCarbon Ventures \nto study investment opportunities and develop commercialized carbon capture, utilization, and sequestration \n(CCUS) technology. The Barnett Zero project in Texas began commercial operations on 13 November 2023 to \ncapture carbon dioxide and permanently sequester it underground for the first time. The project will have an \naverage sequestration rate of up to 210,000 tonnes of carbon dioxide (CO )-equivalent annually. The Cotton \n2 \nCove project, BKV\u2019s second CCUS project, will have an average sequestration rate of up to 45,000 tonnes of \ncarbon dioxide (CO )-equivalent annually. The project aims to achieve commercial operations by the end of \n2 \n2024. In addition, ongoing feasibility studies of investment and development are being conducted for additional \nprojects aimed at reducing greenhouse gas emissions in business operations and their environmental impact. \nThis also presents a potential opportunity to generate income through the sale of carbon credits in the future. \nBarnett Shale is ideal for natural gas production, \nwith its existing infrastructure and transportation system. \nIt is also a significant natural gas production source that \nhas fulfilled the demands of the Maxico Gulf Coast states \nof the U.S. for more than 20 years, with a total acreage \nposition of approximately 289,000 net acres and 3,850 \nproduction wells. \nOn 18 May 2022, BKV expanded its investment in \nthe Barnett Shale by acquiring stakes in natural gas \nupstream to midstream assets with the transaction of \nUSD 750 million and contingent payments of up to USD \n50 million. The acquired assets recognized income from \ntheir operations from 1 July 2022 onward. The Barnett \nShale is a large natural gas reservoir with low production \nrisk owing to its existing infrastructure and transportation \nsystem. Its acreage position is approximately 165,000 \nnet acres at the heart of the Barnett Shale, with over \n2,100 production wells. BKV is the operator of Barnett, \nmanaging natural gas compression, 778 miles of gas \ngathering pipeline system, and 65 gas compressor \nstations. This natural gas field has access to high-demand \nmarkets supported by existing infrastructure. Since the \nBarnett Shale is already operating, it can generate cash \nflow instantly from its various products, including natural \ngas and natural gas liquids (NGLs). Moreover, BKV\u2019s \nfamiliarity with the region enables the creation of synergy \nand facilitates the transfer of knowledge and technology \nfrom its operations at existing production sites, leading \nto new investment opportunities for long-term growth. \n42 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Combined Heat and Power Plants (CHP) \nBanpu Power Public Company Limited (BPP), a 78.66% owned subsidiary of Banpu, holds 100% of the paid-up \ncapital in Banpu Power Investment Co., Ltd. (BPIC), which was registered in Singapore through Banpu Power \nInternational Ltd. (BPPI). BPIC invested in three CHPs in northern China with a total installed capacity of 618 \nMWe (equity-based capacity of 548 MWe), comprising a power capacity of 348 MW and a steam production \ncapacity of 1,508 tonnes per hour. Details are as follows: \n1. Luannan Combined Heat and Power Plant \nThe power plant is located in Luannan County, Tangshan \nCity, Hebei Province. The coal-fired power plant generates \npower and steam with a combined installed capacity of \n246 MWe, comprising a power capacity of 150 MW and \na steam production capacity of 538 tonnes per hour. \n2. Zhengding Combined Heat and Power Plant \nThe power plant is located in Zhengding County, \nShijiazhuang City, Hebei Province. The coal-fired power \nplant generates power and steam with a total installed \ncapacity of 139 MWe, comprising a power capacity of \n73 MW and a steam production capacity of 370 tonnes \nper hour. \nEnergy Generation Group \nThermal Power Business \n43 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","3. Zouping Combined Heat and Power Plant \nThe power plant is located in Zouping County, Binzhou \nCity, Shandong Province. The coal-fired power plant \ngenerates power and steam with a total installed \ncapacity of 233 MWe, comprising a power capacity of \n125 MW and a steam production capacity of 600 tonnes \nper hour. However, as BPIC holds 70% shares of this \npower plant, its equity-based capacity is 163 MWe. \n\u2022 HPC was granted a concession from the Lao PDR government to develop, construct, and operate the HPC \npower plant. The concession is valid from November 2009 until its expiration or 25 years from the COD of \nthe third production unit in March 2016. The shareholding percentage of each company is BPP 40%, RATCH \n40%, and LHSE 20%. \n\u2022 PFMC was granted a concession to operate a lignite coal mine. The shareholding percentage of each company \nis BPP 37.5%, RATCH 37.5%, and LHSE 25%. \nBLCP Power Plant \nBPP holds 50% shares of BLCP Power Ltd. (BLCP), \nan independent power producer (IPP) with a 1,434 \nMW thermal power capacity. BLCP consists of two \nproduction units with an installed capacity of 717 \nMW each. Both units are fueled by high-quality \nbituminous coal. Located in Map Ta Phut Industrial \nEstate, Rayong Province, BLCP has secured a \nPower Purchase Agreement (PPA) with the Electricity \nGenerating Authority of Thailand for 25 years, starting \nfrom the Commercial Operation Date (COD) of the \nsecond production unit. The construction of the BLCP \nbegan in August 2003. Its first unit and second unit \nachieved COD in October 2006 and February 2007, \nrespectively. Both units have been fully operational \nfor 17 years. \nHPC Power Plant \nBPP entered into a joint venture with a subsidiary of \nRatch Group Pcl. (RATCH) and Lao Holding State \nEnterprise (LHSE), a state enterprise of the Government \nof Lao PDR, to establish Hongsa Power Co., Ltd. (HPC) \nand Phu Fai Mining Co., Ltd. (PFMC). The headquarters \nof the two companies are in Vientiane, Lao PDR, and \nthey have an objective to operate the HPC power plant \nin Lao PDR under the following joint venture\u2019s terms \nand conditions: \n44 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Shanxi Lu Guang Power Plant \nBPIC, a wholly-owned subsidiary of BPP, entered into \na joint venture agreement to develop the Shanxi Lu \nGuang power plant, a 1,320 MW coal-fired power plant \nthat deploys the Ultra-Supercritical (USC) technology. \nIt is located in Changzhi City, Shanxi Province, China, \nthree kilometers away from the Gaohe mine. BPIC \nholds 30% shares of the power plant, while Gemeng \nInternational Energy Co., Ltd. (Gemeng) and Anhui \nProvince Wenergy Co., Ltd. each holds 35% of its \nshares. The first and second production units achieved \ntheir COD in June 2021 and October 2021, respectively. \nNakoso IGCC Power Plant \nBPIC, a wholly-owned subsidiary of BPP, acquired \n33.5% stakes in Nakoso IGCC Management Co., Ltd. \n(NIMCO), which holds 40% shares of Nakoso IGCC \npower plant. Therefore, BPP holds 13.4% shares in \nthe 543-MW Nakoso IGCC power plant in Fukushima \nPrefecture, Japan. This power plant integrates the coal \ngasification technology with the Gas-Fired Combined \nCycle Plant. The IGCC technology resulted from 30 \nyears of research and development of Mitsubishi \nCorporation Power Limited (Japan), one of the power \nplant\u2019s five shareholders. The Nakoso power plant \nis a commercial-scale IGCC power plant using \nHPC is a mine-mouth power plant fueled by lignite coal with a total installed capacity of 1,878 MW from three \npower production units, whose capacity is 626 MW each. The first, second, and third production units achieved \ntheir COD on 2 June 2015, 2 November 2015, and 2 March 2016, respectively. \nHigh Efficiency, Low Emissions (HELE) technology. It achieved COD on 16 April 2021 and entered into a long-term \nPower Purchase Agreement (PPA) to supply electricity to Japan\u2019s power grid. Nakoso IGCC also has a long-term \nfuel supply agreement. \n45 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","Temple I and Temple II CCGT Power Plants \nBKV, a 96.38% owned subsidiary of Banpu, and Banpu \nPower US Corporation (BPPUS) - a wholly-owned \nsubsidiary of BPP, jointly established BKV-BPP Power, \nLLC (BKV-BPP) in which BKV and BPPUS equally hold \n50% ownership. \nOn 10 August 2021, BKV-BPP acquired 100% shares \nin Temple Generation Intermediate Holdings II, LLC, \nwhich wholly owns the Temple I CCGT power plant \nin Texas in the U.S. The 768-MW gas-fired power \nplant achieved its commercial operation date in July \n2014. Later, on 10 July 2023, The Temple Generation \nIntermediate Holdings II, LLC acquired 100% shares in \nthe Temple Generation II, LLC (formerly CXA Temple \n2, LLC), which operates the Temple II CCGT power \nplant located adjacent to Temple I CCGT power plant. \nThe 755 MW Temple II power plant achieved COD in \nAugust 2015. In addition, BKV-BPP founded BKV-BPP \nRetail, LLC to operate an electricity retail business in Texas, \none of the U.S. states with a fast-growing economy \nand population. \nBoth Temple I and Temple II are natural gas-fired \npower plants that deploy Combined Cycle Gas Turbines \n(CCGT) technology \u2013 an advanced High Efficiency, \nLow Emissions (HELE) technology. Their flexibility in \npriority dispatch according to its merit order to serve \nthe dynamic demand pattern in the merchant power \nmarket enables them to compete in the Electric \nReliability Council of Texas (ERCOT) market. \nSolar Power Plants in the People\u2019s Republic of China \nBanpu NEXT Co., Ltd. (Banpu NEXT), a subsidiary in which Banpu and BPP equally hold 50% ownership, holds \n100% shares of BPP Renewable Investment (China) Co., Ltd. (BPPRIC). BPPRIC invested in seven solar farms \nin China that are eligible for a Feed-in Tariff (FiT) of a 20-year term. As of 31 December 2023, BPPRIC\u2019s total \ngeneration capacity was 177.32 MW, as detailed below. \nRenewable Power Business \n46 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)","Solar Power Plants \nShareholding \n(%) \nCapacity \n(MW) \nLocation \n(Province) \nCommercial \nOperation Date \n1. Huineng \n100.00 \n21.51 \nShandong \nJuly 2016 \n2. Jinshan \n100.00 \n28.95 \nShandong \nSeptember 2016 \n3. Haoyuan \n100.00 \n20.00 \nShandong \nOctober 2016 \n4. Hui\u2019en \n100.00 \n19.70 \nShandong \nJanuary 2017 \n5. Deyuan \n100.00 \n51.64 \nZhejiang \nFebruary 2017 \n6. Xingyu \n100.00 \n10.30 \nShandong \nOctober 2017 \n7. Jixin \n100.00 \n25.22 \nJiangsu \nJune 2016 \nTotal Capacity \n177.32 \nSolar Power Plants and Projects in Japan \nBanpu NEXT has invested in several solar power plants and projects in Japan through subsidiaries. As of 31 December \n2023, the Company\u2019s total equity-based capacity was 145.88 MW, as detailed below. \n47 \nBusiness and Operational Results \nCorporate Governance \nCerti\ufb01cation of Information and Data Accuracy","Solar Power Plants\/ \nProjects \nShareholding \n(%) \nCapacity (MW) \nLocation \n(Prefecture) \nCommercial \nOperation Date \n100% \nEquity- \nBased \n1. Olympia - Hitachi \nOmiya No.1 \n40.00 \n2.00 \n0.80 \nIbaraki \nJuly 2013 \n2. Olympia - Hitachi \nOmiya No.2 \n40.00 \n2.00 \n0.80 \nIbaraki \nJanuary 2015 \n3. Olympia - Ozenosato \nKateshina \n40.00 \n2.00 \n0.80 \nGunma \nJanuary 2015 \n4. Olympia - Sakura No. 1 \n40.00 \n2.00 \n0.80 \nTochigi \nDecember 2015 \n5. Olympia - Sakura No. 2 \n40.00 \n2.00 \n0.80 \nTochigi \nOctober 2015 \n6. Hino* \n100.00 \n3.50 \n3.50 \nShiga \nMay 2016 \n7. Awaji* \n100.00 \n7.90 \n7.90 \nHyogo \nMay 2017 \n8. Mukawa \n93.00 \n17.00 \n15.81 \nHokkaido \nAugust 2018 \n9. Nari Aizu \n100.00 \n20.46 \n20.46 \nFukushima \nDecember 2018 \n10. Kurokawa \n100.00 \n18.90 \n18.90 \nMiyagi \nDecember 2019 \n11. Tenzan \n100.00 \n1.96 \n1.96 \nSaga \nOctober 2017 \n12. Muroran 1 \n100.00 \n1.73 \n1.73 \nHokkaido \nAugust 2018 \n13. Muroran 2 \n100.00 \n1.63 \n1.63 \nHokkaido \nJanuary 2018 \n14. Takeo 2 \n100.00 \n1.00 \n1.00 \nSaga \nOctober 2018 \n15. Yamagata \n100.00 \n20.00 \n20.00 \nYamagata November 2020 \n16. Yabuki* \n100.00 \n7.00 \n7.00 \nFukushima \nDecember 2020 \n17. Kesennuma \n100.00 \n20.00 \n20.00 \nMiyagi \nNovember 2021 \n18. Nihonmatsu \n100.00 \n12.00 \n12.00 \nFukushima \nNovember 2021 \n48 \nBanpu Public Company Limited \nANNUAL REPORT 2023 \n(56-1 ONE REPORT)"]