In this article, we will explore how the president of B.Grimm, Harald Link, is making a significant investment in renewable energy as part of a $2 billion plan to achieve sustainable and accelerated growth for the 145-year-old Thai company.
Expansion in Renewable Energy Projects
The third-generation president intends to double the renewable energy projects in his portfolio, including wind, solar, and hydro, to account for 50% of his electrical capacity. This comes as part of an ambitious plan worth 70 billion baht ($2 billion) to increase the total generating capacity of B.Grimm Power, listed on the stock exchange, to 10,000 megawatts by 2030 from the current 3,830 megawatts.
Transition to Clean and Green Energy Production
The transition to clean and green energy production is the only way forward for B.Grimm Power, which currently relies 73% on gas-fired power plants. Harald Link states, “We wanted to be a global energy company. When we achieved that, we had a new vision to empower the world gently.” B.Grimm Power indicates that renewable energy will drive substantial industry growth, with total operating profits (Ebitda) expected to rise 10% annually to 35 billion baht by 2030 from 15 billion baht in 2021.
Expansion into Foreign Markets
B.Grimm Power sees the best growth opportunities in rapidly transforming developing economies outside of Thailand, where the company can be green from the start. Although a large portion of the energy generated by B.Grimm Power currently goes to the Electricity Generating Authority of Thailand, recent years have seen several partnerships and deals in Asia, the Middle East, and Europe, focusing on solar energy.
Financial Challenges and Capital Management
B.Grimm Power faces financial challenges in executing its ambitious plan, needing to design an appropriate financing structure and suitable expansion pace to achieve its ambitious goals while maintaining appropriate debt levels. Other options include green bonds, perpetual bonds, and other investment funds, in addition to listings of subsidiaries.
Succession Preparation
Harald Link is preparing his daughter Caroline to take over the leadership role in the company, although there is no fixed timeline for the handover process. Caroline currently serves as a director on the board of B.Grimm Power, in addition to her membership on the boards of several subsidiaries. Harald Link says, “She understands each of our businesses.” Furthermore, his son Felix works as a manager at B.Grimm Power, and while he has a significant interest in economics, he primarily does not wish to manage companies, preferring to engage in spiritual work.
Ultimately, B.Grimm Power is working hard to achieve sustainable and consistent growth through its substantial investments in renewable energy and its expansion into international markets. With financial challenges and capital management along the way, the company is striving to find diverse funding sources to achieve its ambitious goals. As succession preparation continues, Harald Link looks to secure the company’s future and ensure its continued success in the coming years.
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